Getting cheap auto insurance
In the United States, it is against the law to drive unless you meet your states financial responsibility requirements. For the vast majority of drivers, that means having cheap auto insurance. Regulations vary from state to state, but every state requires drivers to have liability insurance that meets required minimum limits. Since you are required to have insurance, finding an affordable policy will probably be one of your priorities.
Insurance Coverage’s
While your state will automatically require you to carry liability insurance, if you lease or finance your car your lender or lease holder will probably require you to carry collision and comprehensive coverage as well.
Liability Insurance
The cost of liability insurance must be included in every auto insurance quote. Liability insurance covers the damage to another individual or their property when a driver is found to be at fault. Each state sets its own minimum liability insurance limits, and the average minimum limits are as follows:
- $20,000 per person, for bodily injury.
- $40,000 per accident, for bodily injury.
- $20,000 per accident, for damage to another’s property.
A driver is not required to purchase more than the state mandated amount of minimum liability insurance. However, if you cause an accident, you will be responsible for any expenses that exceed the minimum liability limits. Expenses such as hospital cost, and lost wages can easily exceed your states minimum liability limits. Experts recommend that drivers get at least $500,000 in liability coverage.
Collision Insurance
Collision insurance is not required by state law but may be required by the title holder if you lease your car or have a car note. Collision insurance covers the cost to your car if it hits or is hit by another vehicle or other object. Collision insurance will pay for all of your cars repair expenses that exceed your deductible no matter who was at fault. When you purchase collision insurance, you should keep in mind that, the insurance company will not settle a claim that is for more than the blue book value of your car. If you car is old or of little value, you could save money by reducing or dropping the coverage.
Comprehensive Insurance
Comprehensive insurance like collision insurance, is not required by state law, but may be required by the title holder if you lease your car or have a car note. Comprehensive insurance covers your car in the event of accidents like theft, fire, vandalism, storms or acts of God. When you purchase comprehensive insurance, you should keep in mind that, the insurance company will not settle a claim that is for more than the blue book value of your car. If you car is old or of little value, you could save money by reducing or dropping the coverage.
Miscellaneous Coverage’s
Add on coverage’s like, roadside assistance which offers free tow truck service or rental car reimbursement coverage, which reimburses you if you have an accident and your car must be in the shop are nice but increase the cost of your insurance policy. If you drop these coverage’s, you can reduce the cost of your auto insurance.
Discounts
Taking advantage of the discounts that are offered by auto insurance companies can be an important step in reducing your insurance cost. Below is a list of discounts that are commonly offered by auto insurers.
Good Drivers Discount
If you have not had an accident or gotten a ticket for three years or more, you should be eligible to get a good drivers discount.
Multiple Car Discount
This is a discount that is given to drivers that insure two or more vehicles with the same insurance company.
Umbrella Policy
If you own a home, an umbrella policy is an excellent way to save money. An umbrella policy covers both your car and your home. These policies are generally sold for a discount and allow you to purchase a large amount of coverage.
Anti Theft Device
If you car has a burglar alarm, a steering wheel lock or any or any other kind of anti theft device you can get a discount, if you carry comprehensive insurance.
Low Vehicle Mileage
If you do not use your car much and put less than ten thousand miles a year on it, your insurer might give you a small discount. The thinking is that if you do very little driving your risk is small.
Getting Quotes
The most important thing that a person can do when looking for cheap auto insurance quotes is to shop around. Comparing numerous quotes from competing insurers is the best way to reduce your auto insurance cost. The process for getting quotes is relatively easy. To get a quote you enter an insurance website, and fill out a short questionnaire. If you have selected an individual company’s website, you can get a cheap auto insurance quote right away. If you have entered the website of an independent insurance agency, you can have dozens of cheap auto insurance quotes within minutes. You might be surprised by how much the quotes vary from company to company. Sometimes the same insurance coverage can cost twice as much.
Purchasing Insurance
Before making a purchase, you will need to consider more than just the cost of the insurance policy. Getting the proper auto insurance is an important financial decision. If you are in a serious accident and have inadequate insurance coverage, the results could be financially devastating. You will therefore, want answers to the following questions before making a purchase.
Is the insurance company that you are selecting a quality company with a good record of paying claims?
- Does the policy meet your states minimum required liability requirements?
- How much liability coverage do you have for the injury or death of one person?
- How much total injury and death liability coverage do you have?
- How much property damage coverage do you have?
- Do you have enough collision coverage to replace your car in the event of an accident?
- Do you have enough comprehensive coverage to replace your car if it is stolen, vandalized or destroyed by an act of God?
- Will you and your family be covered if someone is hurt in an accident?
- Does the policy give uninsured/underinsured motorist coverage?
If you have gotten satisfactory answers to your insurance questions, and have a quote that matches the coverage’s that you need with an affordable cost you can then make a purchase. Purchasing insurance is easy all you need to do is to submit an online insurance application and make a submission. People are often insured within one hour after their submission.
If you do your homework, and use the internet to compare multiple quotes, you should have no problem getting high quality insurance for a relatively cheap price.