Inexpensive Auto Insurance: What It Is and How to Get It?
Not all auto insurance companies are created equal.
Some companies offer inexpensive auto insurance, while others charge sky-high premiums that can cost you thousands of dollars each year in order to keep your car insured and on the road legally.
How do you know if you’re getting the best deal on your car insurance?
And how do you know if you’re buying from a reputable company that won’t leave you high and dry when you need it most?
What Is the Best Type of Car Insurance?
There are a lot of different types of car insurance out there, and it can be hard to know which one is right for you.
If you're looking for the cheapest option, then you should look for a company that offers discounts for things like good driving records or safe cars.
Geico is a great option for cheap car insurance, but it's not the only one.
There are plenty of other companies that offer affordable auto insurance without sacrificing quality or coverage.
The best way to find the right policy for you is to compare quotes from multiple companies and see what each has to offer.
Some might offer better discounts than others, so keep an eye out for those while comparing prices.
When you do find a company with the type of coverage you need at an affordable price, make sure to sign up!
And remember if you qualify for any savings programs with your current insurer, tell them before switching so they don't penalize you with higher rates when you switch.
Why Do I Need Car Insurance?
Car insurance is a legal requirement in most states, and it helps protect you financially if you're involved in an accident.
The best car insurance for young drivers is typically cheaper than the premium you'd pay for an older, more experienced driver.
Cheap car insurance companies typically offer discounts to young drivers who have good grades or take a defensive driving course.
To get the best rates on your car insurance premiums, compare shops among different insurers.
You can save money by getting quotes from at least three providers before making a decision.
If you are the main driver of your vehicle, consider adding additional drivers to your policy as well this will reduce the cost of your insurance each month because many auto insurance providers offer discounts when multiple people are listed as insured drivers on one policy.
Does Your State Require You to Have it?
Auto insurance is one of those things you have to have if you want to drive a car.
But it doesn't have to be expensive. In fact, there are a number of ways you can get inexpensive auto insurance.
Here's what you need to know. In most states, you are required by law to carry at least liability coverage on your vehicle.
If the minimum amount that is required in your state does not cover the cost of damages for which you may be responsible (up to the limits), then consider adding more coverage or higher limits on your policy.
Keep in mind that this might also increase your monthly payments for auto insurance.
For example, adding $100,000 worth of bodily injury protection would raise your premium by about $8 per month.
If you have comprehensive or collision coverage, this could help defray any costs related to damage, theft, or destruction of your vehicle.
No one wants to overpay for auto insurance, but at the same time, you don't want to be under-insured, either.
So, what is inexpensive auto insurance? And how can you get it?
In short, inexpensive auto insurance is insurance that costs less than the average without skimping on coverage.
Of course, the definition of average will vary from person to person and from state to state.
In general, though, you can get inexpensive auto insurance by doing a few things First, choose your deductible wisely.
The higher your deductible, the lower your premium conversely, the lower your deductible, the higher your premium.
For example, if you have $1000 worth of damage to repair on your car in an accident and decide to set a $250 deductible for repairs with comprehensive coverage which covers theft or damage done to your vehicle then you're likely going to pay around $20 per month for insurance.
If instead, you have no deductible with comprehensive coverage - which covers theft or damage done to your vehicle - then expect to pay about $75 per month in premiums (or more).
Second, take advantage of discounts available through groups like AARP or AAA as well as other organizations where applicable.
Auto insurance is important for all drivers, but it can be especially important for those with less money to spare.
If you're looking for inexpensive auto insurance, there are a few things you should know.
First, what is liability coverage?
Liability coverage is the portion of your insurance policy that covers damage to property or injury to another person that you may cause while driving.
It's important to have this coverage because it can protect you from having to pay out of pocket if you cause an accident.
There are two types of liability coverage:
- bodily injury liability
- property damage liability
Bodily injury liability covers medical expenses and property damage liability covers damage to another person's property.
If you're looking for inexpensive auto insurance, one option is to get collision coverage.
This type of coverage will pay for damage to your car if you're in an accident.
Even if the other driver is at fault, your collision coverage will kick in.
For example, say you had a $10,000 deductible on your collision coverage with a $500 premium per year.
You're in an accident where the other driver was 100% at fault and it costs $15,000 to repair your car.
Your deductible would be waived because the cost of repairs was less than what you were insured for ($10,000).
You'd only have to pay out-of-pocket expenses up to $500 since that's what you paid annually in premiums.
If the damages are more than your deductible (say $5000), then you'll need to cover the difference out-of-pocket.
Progressive Snapshot Discounts
If you're looking for inexpensive auto insurance, Progressive's Snapshot Discount could be a great option.
With Snapshot, you install a small device in your car that tracks your driving habits.
Based on your driving, you could receive a discount of up to 30% on your auto insurance premium.
Plus, there's no charge for the device and you can cancel anytime.
Here's how it works You install a device that plugs into your car's On Board Diagnostic (OBD) port.
The device is about the size of an iPhone charger, so it shouldn't take long to put it in.
The device then tracks when you are speeding or braking too hard, as well as time spent not moving.
The information is used by insurers like Progressive to determine if you qualify for their low-mileage discounts or not.
There are no limits to the number of miles you can drive either--you just need enough miles tracked before applying for a discount.
Once enrolled, participants receive emails every few months with updates on their progress towards earning their next low mileage.
Shopping Around for the Best Rates
The best way to find inexpensive auto insurance is to shop around and compare rates from different companies.
By looking at several quotes, you may be able to find the cheapest rate.
The other option is to get quotes from local agents in your area who offer competitive rates.
Ask friends and family for referrals of agents they have used with good experiences as well.
If you're not sure where to start, contact your state's Department of Motor Vehicles (DMV) for a list of registered agents in your area.
Bumping Up Limits
If you’re looking for ways to save on your car insurance, one option is to bump up your limits.
This means that you would increase the amount of coverage you have for things like bodily injury and property damage.
While this will obviously make your premiums go up, it could end up being cheaper in the long run if you get into an accident.
Plus, it will give you peace of mind knowing that you’re fully covered.
For example, if you're considering raising your limit from $50,000 to $100,000 worth of bodily injury coverage, but are worried about how much more expensive it might be per month, just calculate the difference by dividing 100K by 50K.
That's a whopping 200% higher limit. However much your current premium is multiplied by 2 should be the monthly cost for that higher limit.