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Free Auto Insurance: Fact or Fiction?


There are many myths that abound the world of auto insurance. Just like urban legends, some myths evolve from rumors, inconsistencies, and even marketing gimmicks. With more and more insurance companies putting up shop, consumers are increasingly finding it difficult to find legitimate and genuine offers.

Of the many less-than-honest tales that find themselves to curious consumers, none is as deceiving as free auto insurance. In today’s world, is there really something that people can get for free? And for that case, can people really avail of auto insurance without paying for it?

The answer, unfortunately, is no. There really is no such thing as free lunch in the world of auto insurance. A simple explanation of the basics of economics might be able to shed some light on free auto insurance claims and scams.

When there is a strong demand for a product or service and the supply side fails to meet this demand, then prices will go up. However, if supply increases, then prices will fall. Because all but two states in the U.S. require drivers to take out car insurance, then there is a corresponding demand for insurance services. The presence of many insurers in the market should be able keep rates down. However, the reality is not as simple as it should be. Even with hundreds of insurance providers in the nation, consumers cannot expect to get free auto insurance just yet.

Insurance companies have to follow a complicated process before deciding whether to allow a consumer to purchase a particular premium. They scrutinize details about the driver’s records, health condition, and even financial stability. While they can certainly give out great incentives and discounts for consumers they see as responsible and low risk, they certainly do not just hand out free auto insurance.

On the other hand, some companies and websites offer comparisons of different car insurance companies and their products for free. These websites earn money by sponsoring companies that want to advertise their product line for consumers to see and consider. The only thing car insurance providers give for free are quotes and comparisons. But by keeping a spotless driving record and paying your dues on time, insurers will then recognize you as a responsible client and even offer you special rates and privileges. Maintaining a good reputation might not give you free car insurance, but staying responsible and trustworthy can give you benefits.