Get the Best Rate for Cheap Car Insurance

Posted September 17, 2013 | Filed under topic General Auto Insurance Information

Cheap Car Insurance Should Offer Adequate Protection

Many people associate cheap car insurance with the state minimum for coverage. However, if you want to obtain the best rate, it’s better to view coverage from a different perspective. After all, it will hardly due you much good to buy the state’s minimum if you’re involved in an accident and collide with a luxury car. So, before you make a decision, you’ll want to determine your state’s limits and learn a little more about cheap car insurance coverages.

State Minimums: What the Numbers Mean

Limits for states can differ and are presented in numbers, such as 25/50/20. In this example, the first two numbers refer to coverage for bodily injury in the thousands of dollars while the third number conveys the state’s minimum for property damage protection. So, if you’re involved in an accident where you’re at fault, the insurance will cover each person you injure in the other vehicle for $25,000 per person, or $50,000 overall.

If you injure more than two people, then you could be sued for the amount the insurance cannot cover. The last number, which refers to property damage, will cover the costs associated with the vehicle you hit or any other property damage that results from the mishap. Obviously, if you smash up a high-end automobile, you could be liable for more than what your coverage provides. So, you need to keep these factors in mind when you’re shopping for the best cheap car insurance quote online.

Try to Buy More than the State’s Minimum in Liability Coverage

Cheap car insurance may include one of five types of protection. As noted, liability insurance will protect you in case you’re involved in an accident that is determined to be your fault. While you’re required to acquire the state’s minimum coverage for bodily injury and property damage, it’s still a good idea to obtain extra coverage, at the cheapest rate, to ensure you have the needed protection.

Collision Coverage

Collision insurance pays any damages or repairs on your car if you have a mishap. If you are involved in a crash where your auto is totaled, the protection will cover the assessed value of your car. To make sure you obtain the best rate for cheap car insurance then, it’s probably best to forego collision insurance if you drive an older vehicle and you don’t owe on it. Collision coverage is a required if you’re making payments on your vehicle.

Comprehensive Insurance

Comprehensive insurance covers any damages to your car that are not related to an accident. Therefore, the protection extends to such events as theft, weather-related occurrences, or any type of dents and dings that collision insurance does not cover. If you drive an older model car and are not making payments on the auto, you may want to bypass the protection. Like collision insurance, you’ll need to buy the insurance if you have a lien on your car and are currently making payments.

No-fault Insurance: PIP Coverage

Personal injury protection insurance, referred to as PIP, is a no-fault type of insurance that is not offered in every state. Some states make the insurance a requirement to reduce the number of lawsuits. The insurance covers your medical costs if you’re involved in an accident as well as the medical expenses of any passengers that may be riding with you at the time of a crash.

Uninsured and Underinsured Motorist Protection

Uninsured and underinsured motorist protection assists in covering you if the other driver is not carrying the required state minimum protection or is not sufficiently insured. Considering the complete coverage the insurance provides, it’s a good idea to add the protection even if your goal is to buy a cheap car insurance plan.

Some Ways You Can Lower Your Premium

Now, that you have a basic idea of the coverages, you can use the information to obtain the best protection at the cheapest, most affordable rate. Some ways you can save money on the premium is by insuring more than one car or driver, maintaining a good driving record, or taking a defensive driving course. Also, if you’re in the market for a new car, find out which makes and models require lower coverage.

Of course, it never hurts to shop around for the best cheap car insurance plans you can find. Raising your deductible can also help as well as keeping your mileage low. If you have access to mass transit, you might choose to take it if you live more than a few miles from where you work.

Have You Checked Your Credit Score?

Other measures you can take to lower your premium cost include improving your credit score, if necessary, and foregoing any insurance protection that you really don’t need. Also, keep in mind, your premium will be higher if you live in a fairly high crime area than if you reside in a neighborhood that is considered safe. Installing an anti-theft device can also lower the amount of your insurance too.

Take Advantage of Discounts

So, to obtain cheap car insurance and pay lower premiums, it’s important to research the various plans before your make a purchase, reduce the number of miles you drive, and, if feasible, select a higher deductible. You can also obtain discounts for being a safe driver, insuring multiple vehicles, and using electronic funds transfer (EFT) for paying your bill. Cheap car insurance becomes cheaper too if you pay your premium in full.