How to Find the Cheapest Car Insurance and how to get discounts

 

How to Find the Cheapest Car Insurance Coverage for You

The easiest and best way to find the cheapest car insurance coverage is to shop around. Determine your coverage needs and then comparison shop for those exact coverages, limits and deductibles so you’ll find prices for comparable policies. It’s no good to find a cheap auto insurance policy only to realize the price is low because it contains minimum coverage levels or high deductibles.

Cutting coverage is one way to get cheaper auto insurance, but it can leave you open to repair bills and lawsuits against you. Instead, try these tips for getting cheap car insurance.

Get quotes from multiple car insurance companies

Comparison shopping is the best way to potentially save hundreds of dollars a year. Even if you have strikes against you, such as an accident or moving violation, you can still shop around for cheap auto insurance rates. Because of the wide variation in pricing, the company that offered you a good rate for a clean record may not be the cheapest when your driving record changes. That’s why it’s key to compare car insurance quotes from different insurers.

Review your auto insurance coverage

It’s good to review your policy regularly to make sure your current coverage, limits and deductibles still are best for your current situation.

Do you have optional coverages on your vehicle you don’t use or want, such as roadside assistance or rental reimbursement insurance? If so, take them off to get cheaper car insurance.

Reconsider your deductible

Your deductible is what’s subtracted from a settlement check if you make a collision or comprehensive insurance claim. If you can afford a higher deductible in the event of a claim, raise it so your collision and comprehensive coverages are cheaper. For example, if you have a $250 deductible, you can raise it to $500 or $1,000 and save.

How to Get Cheap Car Insurance with Discounts

Car insurance rates can vary dramatically because each company has its own way of weighing factors that affect car insurance rates, such as your driving record, claims history and credit. Insurance companies also differ on what discounts they offer.

To get cheap car insurance with discounts, keep in mind auto insurance discounts as you comparison shop for a policy. Online car insurance quoting forms ask questions that help insurance companies determine discount eligibility. Speaking to an insurance agent can also help because they can check to see if you qualify for discounts.

Here are some tips on how to get cheaper car insurance with discounts:

1.      Review car insurance discounts periodically

Even if you don’t want to switch companies, it’s smart to make sure you’re getting all the car insurance discounts available. Ask your insurance agent for a discount review. For example, if you’ve recently abandoned a long daily commute, you may be in a lower mileage tier that results in savings.

2.      Look for a good bundling discount

If you insure your car and also have another policy from the same company, you can usually save. One of the best discounts you can get is when you bundle auto and home insurance. You can also get a discount for bundling auto and renters insurance or auto and condo insurance.

3.      Change the way you pay your insurance

If you can pay your policy in full, you’ll likely receive a discount. If you can’t pay in full, see if you can get a discount by setting up electronic payment transfers for your monthly insurance bill. Also, some insurance companies offer a small discount for going paperless or even getting an online quote and buying a policy online.

Every little bit of savings can add up to the cheapest car insurance policy possible, so don’t be shy about asking about discounts that can benefit your bottom line.

What Type of Car Insurance Should You Get?

The type of car insurance you should buy depends on your state’s requirements and your specific situation. Insurance is not a one-size-fits-all product. Evaluate the coverage and limits that work best for you.

How much car insurance you need will be different if you have a new, financed car and want the best policy possible versus if you have an older car and want just the required basics to be drive legally. Here are the primary types of car insurance and limit information:

1.      Liability insurance

Bodily injury and property damage liability are the foundation of an auto insurance policy and mandated in most states. These pay for damage and injuries to others if you cause an auto accident. Most states require a minimum amount of liability car insurance, but it’s wise to get higher limits if your budget allows.

Limits of at least $100,000 for bodily injury per person, $300,000 per accident and $100,000 for property damage (100/300/100) is a solid liability foundation.

2.     Uninsured and underinsured motorist coverage

Uninsured and underinsured motorist insurance is required in some states and optional in others. Uninsured motorist (UM) coverage pays for your medical expenses if you’re hit by someone who doesn’t carry liability insurance. Underinsured motorist (UIM) insurance pays if the at-fault driver doesn’t carry enough liability insurance to cover your medical bills.

Limits for UM typically match your liability coverage limits.

3.     Personal injury protection (PIP) or medical payments (MedPay) coverage

Required in some states and optional in others, personal injury protection insurance is often part of a no-fault insurance system. In no-fault states you’re required to make most injury claims on your own car insurance first, regardless of fault.

Medical payments coverage is similar in that it pays for your injuries from an auto accident and is required in a few states. If your state requires PIP or MedPay, you must get at least the minimums mandated. If optional, you can skip these for cheaper car insurance, especially if you have decent health care coverage that would pay for car accident injuries.

4.     Collision and comprehensive insurance

Collision and comprehensive insurance are not required by state laws but usually mandated by financing companies if you have a car loan or lease. This coverage is often a good idea unless you drive a car of little value. They are two separate coverage types often sold together. The limit for either coverage type is the value of your totaled car at the time of the incident.

·        Collision insurance pays for your vehicle’s repairs if your car is hit by another vehicle—regardless of fault. It also can pay out if you accidentally hit something, such as a pole.

·      Comprehensive insurance pays out if your car is stolen or damaged due to issues, such as vandalism, fire, falling objects, severe weather or striking an animal.

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