Guide: How to Find the Best Cheap Car Insurance and Get Very Cheap Auto Insurance Coverage
The initial purchase of your car might seem like a huge investment, but it can pale in comparison to the cost of car insurance over the length of your ownership on the vehicle.
Whether you’re purchasing a new car or just need to evaluate the annual cost on your current one, finding cheap car insurance and cheap auto insurance companies is paramount to preserving your budget. Very cheap car insurance does exist – if you know where and how to look for it.
AdvisoryHQ prides itself on being aware of your pressing financial needs, and we understand that finding cheap auto insurance is at the top of your list.
We want to help you find out where to go for cheap car insurance quotes and what you can do to make sure that you receive better (and cheaper) car insurance. If you thought that you had no control over what you pay, it’s time to think again.
Keep yourself from being at the mercy of auto insurance companies and the premiums they try to charge. You can find cheap auto insurance companies aplenty on today’s market so don’t waste any time trying out these tips for getting cheap auto insurance quotes.
Know Your Credit Score
Your credit score can drastically impact any number of financial situations, and your car insurance isn’t likely to be any different.
In some states, companies are allowed to pull your credit score before offering a quote for your annual car insurance premium. The only states that don’t allow this practice are California, Hawaii, and Massachusetts.
If you have a lower credit score, you could expect to pay a higher premium and have to forfeit cheap car insurance.
Why does your credit score matter in terms of cheap car insurance? Well, even cheap auto insurance companies claim that there is a direct correlation between your credit score and your risk of filing a claim on your vehicle. Being able to responsibly pay your bills and take care of your debt seems to also be an indicator of responsible driving.
Keeping track of your credit score through monitoring your credit report (available for free each year at annualcreditreport.com) and through free credit sites, like Credit Karma, is critical for your financial health.
Make sure that there are no mistakes on your report or cases of identity fraud that need to be resolved. Then take a close look at suggestions made by Credit Karma to determine what your next steps are to boost your credit score.
Source: cheap car insurance
Paying your bills on time, potentially lowering your debt, and correcting any outstanding issues on your credit report could qualify you for cheap auto insurance over the long haul. It might not get you very cheap car insurance today, but it could have a big impact over time.
Consider the Car
One of the biggest variables in whether or not you will find cheap insurance quotes is the age, make, and model of the vehicle you’ve purchased.
You should know up front what the insurance cost will be on a car before you ever drive it off the lot or park it in your driveway. Most car insurance companies are happy to provide estimates before you make a purchase.
The general rule of thumb here is that the newer or more expensive the vehicle is when you purchase it, the less likely it will be that you receive cheap auto insurance.
The biggest factor for cheap car insurance companies is determining the cost to repair your vehicle if it’s damaged. Newer models that would need to be replaced in their entirety in the event of a collision will naturally cost more for cheap auto insurance companies and, therefore, have higher premiums.
If you know that your budget is tight when it comes to monthly expenses for your car, you should consider opting for a less expensive vehicle of an older make and model. It is likely to be significantly less expensive up front, and you’re far more likely to get cheap car insurance.
If your heart is, however, set on a new model, you can always check the owner cost information provided by Consumer Reports which includes an average estimate for insurance premiums.
Choosing an older car make and model is often a good choice for teens as well because it gives them a great starter vehicle while making it easier for the parents to receive cheap car insurance for teens. Insurance is naturally higher for younger and less experienced drivers, so choosing an older car may give you the greatest assistance in uncovering cheap car insurance for teens.
Outfitting your car with certain anti-theft features or upgraded safety features may also help you to find cheap car insurance. When you speak to a representative, be sure to make mention of any safety features that your car comes equipped with to raise your chances of acquiring cheap insurance quotes.
You never know what a difference it could make to point out that you have a backup camera, a built-in alarm system or any other advanced feature that is designed to make you a safer driver.
What Does Your Cheap Car Insurance Cover?
Source: cheap auto insurance
Even cheap auto insurance companies will try to convince you that having a low deductible is the best possible solution. If you have a major accident that forces you to repair your car, a low deductible on cheap car insurance means that you won’t have to shell out as much money up front to get it taken care of. Unfortunately, you’re paying more for that convenience on a month-to-month basis.
If you have always been a relatively safe driver with a clean driving record and no at-fault accidents, cheap auto insurance may come a little easier for you than it will for other individuals. You can take the chance based on your history that you aren’t likely to have many serious accidents in the near future.
At this point, you could raise your deductible and set aside the savings on your cheap auto insurance each month to cover the higher upfront cost if you needed to file a claim.
Research has shown that by opting to choose a higher deductible and cheap car insurance on a monthly basis, you can save up to 40 percent.
According to a study on cheap auto insurance conducted by NerdWallet, customers in some states who raised their deductible from $500 to $1,000 saved $200 each year on insurance. Those who took a greater risk by raising their deductible to $2,000 saved a whopping $362 each year on cheap car insurance.
Make sure that you can realistically afford the higher deductible if you do have an accident though. An annual deductible of $1,000 versus $500 doesn’t seem significant, especially when compared to the savings you’ll encounter with the new cheap insurance quotes you receive. However, you have to be sure that you can afford this initial investment in the event of an accident.
Apart from your deductible, you can also consider a shift in your coverage. If your car is older, chances are you don’t need to be searching for cheap full coverage auto insurance.
On older cars, you might want to consider dropping your collision or comprehensive coverage because it likely isn’t worth the premiums. How do you know if it’s worth it to lower your coverage? The best guideline is to take your premium and multiply it by ten. If your car’s value clocks in lower than that number, you may want to consider looking for something other than cheap full coverage auto insurance.
Demand a Discount for Cheap Car Insurance
Many cheap auto insurance companies will offer discounts if you know what to ask for. You can find any number of discounts available to score you cheap car insurance, but we’ll cover a few of the more common methods and suggestions.
Pay up front
First and foremost, you may find cheap auto insurance if you elect to pay for your entire annual or biannual premium up front. When the cheap auto insurance companies are assured that your payment is good to go, their risk decreases, and your price may fall as well.
Bundle your policies
Cheap auto insurance is usually available for individuals who bundle their auto policy with a number of other services. For example, it may be worth asking for cheap insurance quotes from the company that already handles your homeowner’s or renter’s insurance, boat insurance, motorcycle insurance or life insurance. Companies that can handle a variety of requests will often feature lower rates or cheap auto insurance for individuals who are willing to commit to doing additional business with their companies.
Make the most of memberships
Do you have a membership with AAA or AARP or are an active duty military member? Consider what memberships or groups you may be associated with and see if any discounts apply to find cheap auto insurance. The worst that cheap car insurance companies could say is no, and it’s better to know that you asked. Make the most of the memberships you already pay for by seeing what additional discounts they could score you.
Going paperless is another way to try to obtain cheap car insurance online. Brick-and-mortar companies, as well as cheap car insurance online, are all encouraging their customers to receive their bills online instead of via snail mail. By saving companies the expense of paper and postage, as well as the time-consuming endeavor of stuffing envelopes, they may be willing to pass those savings along to you in the form of cheap auto insurance.
Source: cheap car insurance quotes
Be a safe driver
Continue to strive for a clean driving record. The more blemishes that appear on your driving report, the more likely you are to have a difficult time finding very cheap car insurance. Reckless driving can seriously raise your rates or lead to the cancellation of your policy altogether. Accidents have the greatest impact on your cheap car insurance, raising your rates by as much as 40 percent. However, excessive amounts of speeding tickets can have an equally grave impact on your cheap car insurance rates.
These are by no means the only discounts that you might encounter when searching for cheap car insurance – they do happen to be the most popular though.
When you start calling around to request cheap car insurance quotes, you may want to ask what additional discounts cheap auto insurance companies can offer for your unique situation.
Shop Around for Cheap Insurance Quotes
With so many different companies on the market, how do you know which ones are the best cheap auto insurance companies? You might not have to look very hard to find cheap car insurance companies, and many of them are even available to provide cheap car insurance online these days.
According to one survey, comprising both quality of service and cheap insurance quotes, the top three cheap auto insurance companies were ranked as GEICO, State Farm, and Progressive. Along with Allstate, these cheap auto insurance companies easily make up half of the country’s car insurance business.
Just because those cheap auto insurance companies ranked at the top of the list doesn’t mean that they will necessarily be the least expensive option for you specifically. Consider investigating some of the lesser-known or more local companies in your area for cheap auto insurance.
Especially because it is so easy to find cheap car insurance online these days, it doesn’t hurt to shop around at a few locations to see if you can find better or lower rates.
Shopping around for the best rates on cheap car insurance is critical. Accepting the first supposedly cheap auto insurance quote that you receive could end up costing you a small fortune each year. NerdWallet’s estimate predicts that you could be spending $859 more each year between the average quote and the lowest one available to you.
Don’t forget to perform a review of all the cheap auto insurance options available to you each year. An annual review of the rates can help you to uncover discounts that you’ve qualified for over the year.
Especially if you have any major life changes (moving, a new job, a safer driving record or an improved credit score, just to name a few), you may find that you receive much better cheap auto insurance quotes on an annual basis.
Conclusion: Finding Low Cost and Cheap Car Insurance Plans
Shopping for cheap auto insurance may not be a particularly glamorous task, but it has the potential to save you tons of money throughout the time that you own your vehicle.
It’s a necessity to have the proper coverage and deductible on your vehicle, whether you’re searching for cheap full coverage auto insurance or cheap car insurance for teens. Know what you need and what discounts you can qualify for up front to get the best cheap auto insurance available.
Take the time to craft a list of all the features and discounts you believe may qualify you for any type of cheap car insurance. Your cheap car insurance quote could depend on whether you speak up or ask for discounts versus assuming that cheap auto insurance companies will automatically grant them to you.
Be sure to shop around to find the best cheap car insurance quotes available. With the sheer volume of cheap car insurance companies, you should have no problem finding one that meets your expectations for customer service, pricing, and coverage.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.