Tips For Cheap Auto Insurance
Auto insurance coverage of one type or another is a requirement in 48 states. Because you must carry insurance if you want to drive legally, you’ll likely want to pay as little as possible while still carrying the coverage amounts you need. By doing some research about your state’s requirements, optimizing your coverage levels and taking advantage of the many discounts offered by insurance companies, you can prevent paying higher auto insurance premiums than is necessary.
Assess Your Mandatory Coverage Needs
Nearly all states require that you carry certain coverages such as liability or personal injury protection. Find out what the mandatory coverage levels are for your state and determine what the proper limits are for you so that you’re not paying for more coverage than you need. To find out what mandatory coverages apply to your state as well as recommendations for the proper coverage amounts, visit the Edmunds.com website.
Determine Your Need for Physical Damage Coverage
While many states require that you only need to carry liability insurance, there are also other types of coverages you may need. Consider whether you really need physical damage coverage, which includes comprehensive and collision and pays for damages to your own vehicle. Comprehensive coverage pays for damages not related to accidents, such as vandalism and theft. Collision pays when you strike another vehicle or an object such as a tree or mailbox. If your vehicle is financed, you won’t have a choice because your lending institution will likely require you to carry physical damage coverage. If your car is not financed and is of little value, consider doing without physical damage coverage as it can make up about 50 percent of your premium.
Shop Around
Car insurance rates can vary greatly from one company to the next, so it pays to get several quotes. Websites such as Insweb.com will provide you with a number of quotes quickly, so it will save you from having to contact companies on an individual basis. When getting quotes, be sure that the coverages are the same on each quote so you can make accurate comparisons. You should also be sure to save the quotes so that you can make side-by-side comparisons.
Choose the Right Deductibles
If you carry physical damage coverage, you will have a choice of deductibles, which are what you pay out of pocket before coverage begins. The higher deductible that you carry, the more you will have to pay out of pocket in the event of a claim, but you will pay less in premiums. To keep premiums low, choose the highest deductible you could afford to pay if you needed to file a claim.
Make Sure to Get All Applicable Discounts
Car insurance companies offer a variety of discounts, so be sure that you’re getting all the ones to which you’re entitled. For example, you may be able to get a discount if your teenager completes a driver education course. Senior citizens may be entitled to a discount for taking a defensive driver course. If you insure your car with the same company than insures your home, you may be able to get a discount on both policies.
Auto insurance coverage of one type or another is a requirement in 48 states. Because you must carry insurance if you want to drive legally, you’ll likely want to pay as little as possible while still carrying the coverage amounts you need. By doing some research about your state’s requirements, optimizing your coverage levels and taking advantage of the many discounts offered by insurance companies, you can prevent paying higher auto insurance premiums than is necessary.
Assess Your Mandatory Coverage Needs
Nearly all states require that you carry certain coverages such as liability or personal injury protection. Find out what the mandatory coverage levels are for your state and determine what the proper limits are for you so that you’re not paying for more coverage than you need. To find out what mandatory coverages apply to your state as well as recommendations for the proper coverage amounts, visit the Edmunds.com website.
Determine Your Need for Physical Damage Coverage
While many states require that you only need to carry liability insurance, there are also other types of coverages you may need. Consider whether you really need physical damage coverage, which includes comprehensive and collision and pays for damages to your own vehicle. Comprehensive coverage pays for damages not related to accidents, such as vandalism and theft. Collision pays when you strike another vehicle or an object such as a tree or mailbox. If your vehicle is financed, you won’t have a choice because your lending institution will likely require you to carry physical damage coverage. If your car is not financed and is of little value, consider doing without physical damage coverage as it can make up about 50 percent of your premium.
Shop Around
Car insurance rates can vary greatly from one company to the next, so it pays to get several quotes. Websites such as Insweb.com will provide you with a number of quotes quickly, so it will save you from having to contact companies on an individual basis. When getting quotes, be sure that the coverages are the same on each quote so you can make accurate comparisons. You should also be sure to save the quotes so that you can make side-by-side comparisons.
Choose the Right Deductibles
If you carry physical damage coverage, you will have a choice of deductibles, which are what you pay out of pocket before coverage begins. The higher deductible that you carry, the more you will have to pay out of pocket in the event of a claim, but you will pay less in premiums. To keep premiums low, choose the highest deductible you could afford to pay if you needed to file a claim.
Make Sure to Get All Applicable Discounts
Car insurance companies offer a variety of discounts, so be sure that you’re getting all the ones to which you’re entitled. For example, you may be able to get a discount if your teenager completes a driver education course. Senior citizens may be entitled to a discount for taking a defensive driver course. If you insure your car with the same company than insures your home, you may be able to get a discount on both policies.
