How to Get Cheap Auto Insurance

If you're buying cheap auto insurance, you'll be looking for the cheapest possible rates. But does that mean you’ll get more protection? Not necessarily. While it's true that some companies may boast about a high crime rate, most of what they advertise are benefits like higher-$250 deductibles and next-day eligibility for more coverage. The catch: usually your policy won't cover loss or theft outside of your state's borders.

Recommendations

Review your coverage

If you have adequate insurance, stay with the same company. Most people need only liability insurance that covers injuries and property damage to others in the event of an accident, not comprehensive coverage that pays for damage to your car.

If you're getting a better deal from one insurer than another, ask why. You may get more protection for less money—but it’s important to know exactly what you're getting before you buy and make sure it's the right policy for your needs.

Examine personal information carefully

Look over any application carefully for accuracy before signing it, because state laws won't allow insurers to correct errors made by policy holders. If the wrong information is supplied, your policy benefits could be reduced or canceled.

Both men and women can lower their insurance costs by raising their deductibles. A $250 deductible means you’ll be responsible for taking care of small claims yourself. But if you don’t have the money, you may not be able to take care of a big one either.

High-risk drivers

If you've had many tickets or accidents in recent years, you’ll probably pay more for insurance than other drivers. If all the companies reject your application or charge excessive rates, talk with an independent agent who is willing to shop around for cheap auto insurance quotes on your behalf rather than relying on one company to do the job.

Most people can buy the bare minimum mandatory liability insurance for about $150 a year. For lower premiums, look for a discount.

For $30-$45 more per year, you could buy UM coverage that covers you and any passengers who are injured or killed in an accident regardless of who caused it.

Some businesses will give you a 5%-10% break on your life insurance if they insure your car with the same company.

TIP: If you can't get the lowest possible rate from one company, turn down the policy and start fresh with another insurer. Be sure to tell them all about competing offers, since this tends to lower their rates.

If you keep your car for more than two to three years, it’s a good idea to get a new policy. By the time that car is worth less than what you owe on the loan, it’s probably no longer insured by the original policy and your rates may go up.

TIP: If your insurance rate goes up substantially for no apparent reason, call your state's insurance department or check with the Better Business Bureau . Although they can't do much if an insurer makes a mistake or engages in deceptive practices, they may be able to help you get a complaint registered with the company.

Don't pay full price

Don't wait until it's too late and you have some major problem...knowing that you need insurance. Start looking for the lowest possible rates right now so that when you do buy, you always get the best deal! It's like shopping for a new car..don't wait until the old one quits running!

TIP: Check your policies every year. You could be paying too much or even have coverage you don't need, which can be dropped without penalty.

What doesn't change at renewal time?

Yes, your rate will climb if your driving record is worse than it was when your policy was issued. Or if the industry becomes unprofitable. You can decrease rate increases by keeping a good record yourself and by getting higher liability limits (they act like savings).

If you're a frequent visitor to another state, check with your insurance company about coverage there. You may need a form of non-resident insurance that can be bought in your home state or from any insurer in your destination.

To save on car insurance:

Shop around. Rates can vary by hundreds of dollars among companies. There's no reason to pay more for the same coverage...shop periodically for a new deal.

Deductibles are an effective way of reducing costs, but keep them low enough to cover the repairs or replacement you figure you'll need within the next year or two (depending on what you can afford).

When you go through your policy to check the coverage, be sure to follow the company's rules and regulations covering what can be included in a policy. Don't underestimate their power.

TIP: Look at all of your options and don't just choose one based on price alone.

Don't drive through a red light or stop sign - it may cost you more!

Always make a claim if you have an accident - You may not have to pay anything, but why take the chance and let someone else get taken care of?

Be prepared for any accidents by choosing the right coverage package. You'll be covered if you need it and won't have extra expenses that won't be covered.

Don't be an accident magnet - You may not have to, but if you have a high-risk driving record, you'll pay more for coverage. Choose a policy with the least amount of liability coverage you can afford.

TIP: Make sure your car insurance covers all the damage that might occur in an accident...bumper damage, paint scratches, etc.

Pay your bill immediately! Parking tickets and tickets for running red lights or stop signs can add up to $100-$300 in additional fees. If you delay paying them, your insurance could increase as much as ten percent or more on top of the tickets themselves.

Don't let your coverage lapse, especially if you're adding a newly-purchased vehicle to your policy. Make sure you're getting the best deal for your money.

TIP: If you do have a lapse in coverage, remember that it could affect your rates or even make it impossible for you to get back on the road.

If you have more than one car registered in the same name, be sure to check with each company that provides coverage. You may not be getting the cheapest rates from all of them and combining policies could save you hundreds over time. Remember to check your registration documents for lapsed policies before making any purchases or sales...

Conclusion

There are many ways to save money on your car insurance and getting discounts is the best way. Finding a good price for your state is pretty easy and you can do it yourself. I always recommend to my friends to shop around for car insurance whenever they need new one or renew their old policy. There are many websites that can help you with that, but the idea is always the same - compare prices, see what companies offer and choose that one which has best prices, coverage and other conditions as well. I hope that this article will be helpful to you in the future! Good luck!

Best Car Insurance Companies Best Car Insurance Companies As these companies exist in every state there is a huge competition amongst them.