Cheap auto insurance isn't always worth the while
Although it may take a little research to find the best cheap auto insurance, it can pay you back many times over if you’re ever in an accident. Just saving money isn’t enough. It’s important to also find the best value for your dollar.
There are a few basic steps that can help you get cheap auto insurance. One thing that may help before you begin your research is to understand how insurance companies decide on your premiums.
This is usually a pretty complicated formula that varies a bit from company to company, but all of them consider similar factors. These are generally basic elements like the make, model, and book value of your vehicle. Age and driving record also impact your quoted rates. What state or city you live in is often a determining factor as well.
It’s also beneficial to know the minimum requirements for your specific state. A basic policy should meet those guidelines; any coverage you choose above and beyond the essentials counts as an extra. And these extras are exactly where the rate hikes come in.
Once you have an idea of the basics, you can start comparing. Looking online is a great place to start, but you can make phone calls to local offices too. Be sure each policy compared is of the same variety. For example, don’t get a quote on basic coverage from one company and a quote on full collision from another. This will only skew your numbers. Many websites today offer ways to search multiple companies at once, and this is usually the fastest and easiest way to find cheap auto insurance.
Finally, once you’ve found the policy that will work best for your needs, you can keep your premiums low by driving safely and avoiding accidents. Another way to even further lower your already cheap auto insurance is by paying for your entire contract up front instead of in monthly installments. If you can afford the lump sum, this often saves quite a bit over a payment plan.