The best way to get affordable auto insurance is to first search for quotes and then take the time to compare them. Learn about the companies that are offering the quotes and decide which one is offering everything you need at a price you can afford to pay. Since there are many companies out there all claiming to offer low cost car insurance quotes, you'll have to learn a bit about each of them before making your decision.
Don't just look at the big name insurers, either. There are smaller, local car insurance companies that offer affordable quotes. And, since they are smaller, they are able to provide more personalized service to their customers.
Liability-only car insurance is always going to be the cheapest option, as it is the absolute minimum coverage required in each state. However, it only covers things like property damage and medical bills for the other people involved in an accident for which you're found responsible. What about your own medical bills? How do you get repairs for your own vehicle? This is comprehensive / collision insurance coverage options that you'll definitely want to consider.
Finding low cost car insurance quotes isn't just about finding the lowest monthly payment, and should only be considered if you have an old junk car that's not worth the money you pay to insure it. You'll still want to keep your medical costs in mind, though. Another thing to think about is what would happen to your family's finances if you were badly injured in an accident and unable to work for a long period of time? Some insurance quotes will include solutions for this as well.
Low Cost Car Insurance Quotes With Good Deductibles and Premium
As with any type of insurance, there is the deductible VS premiums debate. The deductible is the insurance company's way of making the policyholder share some of the responsibility of an accident. The lower the deductible, the higher the premium, and vice versa. Decide what would be a better solution for your needs. If you're not sure, ask your insurance agent or financial advisor for advice.
You can also do a bit of math on your own. If you were to opt for a higher deductible, how much would you be able to save on a lower premium? Would the amount of money you would save be equal to that of the deductible in the event you are in an incident and must pay some of the repair costs out of your pocket?
Whatever you decide, you still might be able to potentially save a lot of money with discounts. Every company offers a variety of discounts, and there is a chance you will be able to qualify for at least one. One place you can go to find good deals and low cost car insurance quotes is esurance. You can begin by working with a "Coverage Counselor" to find the best coverage. Also, check into Esurance discounts - there are many and you might just qualify for one.
1. Use an auto insurance comparison website to compare quotes
You will need to shop around if you are looking for competitive insurance rates. Consider getting auto insurance quotes not only from national auto insurance companies like Geico and Allstate, but also from smaller insurers, as you never know where the best deals might be hiding.
One of the easiest ways to shop for insurance coverage is to compare auto insurers online. If you'd rather go over your insurance options with someone, consulting an auto insurance agent is another way to go.
2. Know the factors that affect your insurance premium
It's not just your driving record that determines the insurance quotes you get. Insurers base the cost of insurance — your premiums — on the risk they take on insuring it. To assess that risk, they use claims data and personal information, among other factors.
In some states, your credit may have some influence on your premium (although California, Massachusetts, and Hawaii have prohibited the practice of using credit-based insurance scores to help determine rates). And while somewhat controversial, the use of credit-based insurance scores to influence the cost of premiums remains a reality, with studies and surveys suggesting that people with poor credit are more likely to file insurance claims and vice versa.
Whether or not you agree with that practice, you should know that in certain states drivers with better credit may get better rates than drivers without the best credit. For example, a 2015 Consumer Reports survey shows that respondents with only “good” credit paid up to $526 more per year (depending on their state) than similar drivers with better credit scores.
In addition to credit, your insurance rates may also be affected by the following factors :
Your ZIP Code — Certain areas have higher than normal vehicle theft and accident rates. Auto insurance companies may take that into account when setting rates.
The year, make and model of your car — The more expensive your car, the higher your insurance rates may be. Insurers can also look at whether drivers of the same make and model tend to file more claims or have more accidents, as well as safety test results, cost of repairs and theft rate.
The number of miles you drive each month — Driving fewer miles each month may affect the rates you get.
Your driving record — Drivers with clean records tend to have lower rates, and may qualify for a good driver discount.
Your age and marital status — Statistics show that the likelihood of an accident may be linked to these factors.
3. Consider the limits of your liability coverage
Liability insurance typically consists of three types of coverage: bodily injury liability coverage, property damage liability insurance, and uninsured motorist coverage .
Each state that requires liability insurance has its own minimum coverage requirement, but you can choose more coverage at a cost. In general, the higher your coverage limit, the higher your auto insurance rate will be.
But before you settle for your state 's minimum coverage requirement , consider any assets, like your home, savings, or investments. Everyone could be at risk if you cause an accident that results in medical bills or property damage that exceeds your coverage limit. You may want to choose coverage limits that, at a minimum, reflect the value of your combined assets.
4. Consider raising your deductible
The deductible is the amount you will pay out of pocket for the cost of an auto insurance claim. You may be able to lower your monthly premium simply by increasing your deductible.
However, it's a good idea to think about your overall financial situation when deciding on your deductible. If it's too high, it could cause financial hardship down the road if you ever have to make a claim.
5. If you have an older vehicle, consider skipping collision and comprehensive coverage
Collision coverage can protect you if you are in a single car accident, or if another car or object collides with your vehicle. Comprehensive coverage can protect you if your car is stolen or damaged by causes other than a collision, such as theft, a natural disaster, or contact with an animal. Together, these coverage options are designed to cover repairs or repay the value of your vehicle.
Comprehensive coverage and collision coverage are optional, unless you lease or finance your car, in which case the lender may require it.
If you have an old, low-value, paid-off car, you may be able to get collision and comprehensive coverage for less, or you may be able to waive collision and comprehensive coverage altogether. The best option will depend on your specific situation.
To decide if this is right for you, take a look at what is called the “book” value of your car and compare it to the collision and comprehensive coverage deductible and annual cost of coverage listed on the chart. insurance quote you received. Kelley Blue Book and Edmunds.com offer tools you can use to estimate the value of your car.
6. Ask for your car insurance discounts
Do you have a clean record? Are you an outstanding student? Some insurers offer a number of discounts based on group membership, car features such as anti-theft devices, driving history, policy ownership, and more. The following are some of the groups that may qualify for a discount, depending on the insurance provider.
Members of the military
veterans
Full-time students with a good academic record
Good drivers (who have not been in an accident for a certain number of years)
Drivers who have completed a defensive driving or driver's education course
Drivers whose insured vehicles have air bags, anti-lock brakes, anti-theft systems, or daytime running lights
Active or retired federal employees
Drivers who have more than one vehicle insured with the same company
Drivers who also have homeowners or renters insurance with their auto insurer
Drivers who pay their annual premium in a single payment and/or choose to make automatic payments
7. Consider third-party reviews
It can be tempting to simply choose the cheapest car insurance you're offered. But before you do, research the insurance company. An affordable premium is certainly important when choosing an insurance provider, but it shouldn't be the only consideration. An insurance company that offers fast and efficient service can make your life easier if you ever have to make a claim.
To get an idea of the type of service an insurer offers, take a look at third-party reviews. One of the companies that provides these assessments is JD Power. This company conducts an annual study that rates insurance companies based on various factors related to customer service. You can also check a company's rating at the Better Business Bureau .
