Cheap Auto Insurance 101

Getting the Cheapest Auto Insurance Available

You want to pay the best price possible for your car insurance, right? Sure you do! The thing is that many people end up overpaying for the insurance that they need because they do not know they could be getting what they need at a much better price. At the end of the day it is more than possible to get inexpensive auto insurance that still allows you to maintain a high level of coverage. When you do finally get this type of insurance you will be glad that you did- the end result could mean big savings for you in the future.

The following are some of the best ways that you can ensure you are paying a fair price for the discount auto insurance that you must have.

Shop Around

One of the best and easiest ways to ensure that you are getting the cheapest auto insurance is to take your time and shop around. If you are not in a hurry to buy your policy then it is recommended that you look into several different policies from several different companies. After you have done an adequate amount of shopping you can then compare policies together and make a final purchase. At the end of the process you will have peace of mind knowing that you have received the best deal on your cheap auto insurance because you had patience and shopped around for what you needed.

Your Location

Believe it or not, where you live can have an effect on your car insurance. For example, if you live in the middle of Manhattan, New York you will have a higher price on your insurance since you will be at more of a risk in terms of getting into an accident. On the other hand, if you live in a rural part of the country you will pay less because you will not be at such a high risk. Simply put, when you live in a crowded area there will be more cars on the road and there will be a higher likelihood of you getting into an accident with one of these cars. The end result is that you will pay more for your car insurance.

Your Car

You have probably heard about this before but the rumor is true. You will end up paying a lot more for car insurance if you have a car that is expensive or fast. Simply put, if you have a car that is expensive you will have to pay more for car insurance because it will cost more to fix if there is an accident. Also, if you have a car that is really fast you will be more likely to be in an accident. If you really need to have the cheapest auto insurance possible you will most likely want to drive a car that is less expensive with a small engine. This will ensure that your insurance rates drop to a level that you can really afford.

Level Of Deductible

The simple truth is that if you lower the level of your deductible you will be raising your monthly car insurance payment. That said, if your goal is to get cheap auto insurance then you may want to raise your deductible to a higher level. For example, if you raise it to $1,500 from $500 your monthly payment will drop drastically. However, you will end up being responsible for more money out of your pocket should you be in an accident. If you are buying car insurance it is important that you think about how much you could afford if you were in an accident. If you are responsible for $1,400 worth of damages and your deductible is $1,500 you will be responsible for the whole thing as your deductible has not been met yet.

Combine Coverage

Have you ever heard about bundling car insurance with another insurance? If not, you need to look into. When you combine multiple types of coverage you will save yourself money on both of them. If you have one of the following types of insurance ask your agent if you can bundle it with your car insurance to lower the price of both.

  • Homeowners insurance
  • Renters insurance
  • Boat insurance
  • Motorcycle insurance

The fact is that when you have several policies with the same company they will cut you a break. If you are not taking advantage of these multi-policy discounts you are really missing out.

Stick around

Another long-term strategy that is out there that will help you achieve your goal of inexpensive auto insurance is staying with the same company for a long period of time. If you stick with the same insurance company and have a clean record for a few years they will likely give you a loyalty discount. It should be noted, however, that you need to ask for the discount. If you just assume they will give it to then you may never get it. After a few years with a spotless record approach your insurance company and ask them if you can have a loyalty discount.

Drive Safe

You want cheap auto insurance? If you said yes then you better drive safe. If you have a bunch of accidents and speeding tickets on your record you will never get the cheapest rate possible. However, if you have proven that you are low risk you will get a better rate that you can afford. Insurance companies want to feel comfortable with you- if they thing there is a chance that you will cost them money then they will not be as eager to work with you. The simple truth of the matter is that if you drive safe you will have no problem at all getting cheap auto insurance.

Protect your car

If you get a car alarm on your vehicle then you may be able to request a cheaper price on your policy. This is a fact that a lot of people do not realize. When you have that alarm in place you can get a lower price because your car is more secure. Since it is less likely to be stolen it is less of a risk to insure which will turn into some pretty nice savings for you. Getting an alarm is a great investment that can end up saving you a lot of money, and headaches, in the long run.

Driver’s Education

Taking a driver’s education course will not only prepare you for things you may encounter on the roadways but it will also allow insurance companies feel at ease when they are working with you. Since they know you are well-trained and responsible they will be more likely to give you a discount on your policy. If you have taken a driver’s education class make sure to mention it to your insurance agent to see if it makes a difference with them. If you have not taken the class then you can sign up for one that costs little to know money. Upon completion you will be able to notify your insurance agent and begin to realize additional savings.

Just Do It!

There is no reason why you should not have cheap auto insurance. Use some of these strategies to ensure that you are getting what you need in terms of insurance for an affordable price. If you can get your hands on a low cost auto insurance policy you will realize some pretty nice savings for a long time into the future.