Types Of Cheap Car Insurance
Car insurance can represent a substantial expense, particularly for those on a tight budget. Because it is a necessity, it is important for drivers to find adequate coverage at a price they can live with. Fortunately, cheaper auto insurance options are available for most drivers. There are several types of cheap car insurance that can meet your financial needs.
Minimum Limits Policies
Consider an auto insurance policy with limited coverage. The cheapest car insurance option is typically a minimum limits policy, which is designed to meet your state’s minimum insurance requirements. A minimum limits policy typically provides coverage for bodily injury and property damage liability and may also provide medical coverage for you and your passengers if you live in a no fault state. Most states also require drivers to purchase a limited amount of uninsured motorist coverage, which pays for your injuries if an uninsured driver causes an accident. While this will save money on premiums, remember that it typically does not offer enough financial protection to keep you from being sued if you cause substantial injuries or property damage.
Liability Only Policies
If you have an older car, you can save money by choosing a liability only policy. This type of auto policy is similar to a minimum limits policy in that it only provides coverage for damage to others and injuries caused to you by an uninsured motorist (unless you live in a no fault state), but you can choose higher coverage limits to obtain additional protection against lawsuits. A liability only policy does not provide coverage for damage to your car or personal property. It also does not provide optional coverages such as towing and labor or accidental death and dismemberment. The liability only option may not be available if you are making loan or lease payments on your vehicle.
Direct Written Policies
Direct writers are insurance companies that work with customers online or over the phone, rather than directing customers to an agent’s office. Their agents usually work in a call center alongside adjusters, customer service representatives and other insurance professionals. Because they have lower overhead costs, they can sometimes offer cheaper rates. Direct writers also often provide several types of policy discounts. If you insure multiple vehicles, have a clean driving record or get good grades in school, you can obtain policy discounts to save money on car insurance.
Car insurance can represent a substantial expense, particularly for those on a tight budget. Because it is a necessity, it is important for drivers to find adequate coverage at a price they can live with. Fortunately, cheaper auto insurance options are available for most drivers. There are several types of cheap car insurance that can meet your financial needs.
Minimum Limits Policies
Consider an auto insurance policy with limited coverage. The cheapest car insurance option is typically a minimum limits policy, which is designed to meet your state’s minimum insurance requirements. A minimum limits policy typically provides coverage for bodily injury and property damage liability and may also provide medical coverage for you and your passengers if you live in a no fault state. Most states also require drivers to purchase a limited amount of uninsured motorist coverage, which pays for your injuries if an uninsured driver causes an accident. While this will save money on premiums, remember that it typically does not offer enough financial protection to keep you from being sued if you cause substantial injuries or property damage.
Liability Only Policies
If you have an older car, you can save money by choosing a liability only policy. This type of auto policy is similar to a minimum limits policy in that it only provides coverage for damage to others and injuries caused to you by an uninsured motorist (unless you live in a no fault state), but you can choose higher coverage limits to obtain additional protection against lawsuits. A liability only policy does not provide coverage for damage to your car or personal property. It also does not provide optional coverages such as towing and labor or accidental death and dismemberment. The liability only option may not be available if you are making loan or lease payments on your vehicle.
Direct Written Policies
Direct writers are insurance companies that work with customers online or over the phone, rather than directing customers to an agent’s office. Their agents usually work in a call center alongside adjusters, customer service representatives and other insurance professionals. Because they have lower overhead costs, they can sometimes offer cheaper rates. Direct writers also often provide several types of policy discounts. If you insure multiple vehicles, have a clean driving record or get good grades in school, you can obtain policy discounts to save money on car insurance.
