If you own a car, you need to have insurance. Car insurance is perhaps the most important aspect of owning a vehicle, and it is mandated in every state except New Hampshire and Virginia. With car insurance, you can avoid serious financial difficulties if you’re involved in an auto accident.
Like all big purchases, it’s important to get a good price on car insurance. It’s very common to overpay, as auto insurance companies raise rates and charge you for things that you don’t actually need. However, don’t let that scare you away: It’s still easy to find cheap auto insurance. You just need to know how and where to look.
As with most consumer decisions, part of finding cheap auto insurance is shopping around. Never purchase the first auto insurance package you find, or even the second or third. Instead, get quotes from a variety of different car insurance providers. The more quotes you get, the better your chances of finding the best and most cheap auto insurance policy.
Explore Small Car Insurance Companies
When shopping around, don’t just look at the major auto insurance companies. It’s common to assume that the big players offer the best rates, and sometimes that’s true. However, a lot of times, small, independent, and regional auto insurance providers can give you a better rate.
Driving safely isn’t just good for your car and your well-being — it’s also good for your wallet. The better your driving record, the lower your car insurance prices. A great driving history can’t be achieved overnight, but you can work on it constantly. Even if you don’t have a great driving record right now, focus on driving safely going forward and this will help you find cheap auto insurance in the future.
Look for Discounts and Incentives
Most companies offer a large number of discounts and incentives that can help you land a cheap auto insurance plan. Discounts can be granted for only having one person on an insurance plan, bundling your car insurance with your home or life insurance, attending driving school following a ticket violation, or not receiving a violation or being in an accident for a year.
Raise your Deductible
There’s a direct correlation between the cost of your deductible and your premiums. The higher your deductible, the lower your rates will be.
Raising your deductible isn’t always a smart decision. Your deductible should never be above what you can afford to pay if you’re in an accident. However, if you have the money to cover it, raising your deductible will dramatically lower how much you have to pay for your car insurance plan. Of course, it also raises how much you will have to pay in the event of an accident, so take that into consideration as well; if you’re accident prone, raising your deductible may not be a wise decision.
Consider What You Do and Do Not Need
The more protection you need, the higher your rates will be, so you should think long and hard about what you really need in your auto insurance policy. If you don’t drive with much regularity, consider a pay-as-you-go or low-mileage plan. If your vehicle isn’t worth much, consider skipping comprehensive coverage and opting only for liability coverage.
The more you can trim the fat off your policy, the more likely you are to secure cheap auto insurance.
Finding quality, cheap auto insurance doesn’t need to be a big deal or a hassle. Follow these straightforward tips and you’ll be able to find a car insurance policy that fits all your needs, but is still well within your budget.