How discounts result in cheap auto insurance, regardless of your policy type
It’s hard to decide whether to choose a comprehensive, full-coverage policy or just go with quick, cheap auto insurance. The truth is, if you know about the different discounts available through many companies, you might be able to have both.
One of the best ways to maintain cheap auto insurance is by increasing your deductible amount. This is the amount you are responsible for paying before policy benefits begin. Choosing a higher deductible means lower monthly payments. This can be great savings every month, but remember to have that lump deductible sum set aside in case anything does happen.
Another option is to purchase only basic coverage for your vehicle, then a separate umbrella policy to have on hand in case of any serious damages or injuries. As long as your policy meets your state’s minimum requirement, there’s no legal obligation for you to carry more protection.
Either of these solutions is ideal for insuring a car that is driven only rarely.
If you have multiple vehicles, combining them under a single policy usually lands you a discount. And if you only have one car, you may still get a rate break by purchasing home or life insurance policies from the same company holding your auto insurance.
Vehicle choice is another determining factor in whether or not you’ll be able to get cheap auto insurance. New cars can receive discounts based on certain safety features like airbags or daytime running lights. However, since premiums are often based on sticker price, an older car might save you money even without those extras.
Maintaining a clean record by avoiding traffic citations and moving violations will ensure that your initially cheap auto insurance will stay that way. You’ll have to be prepared to do research and compare quotes, but it will pay off short-term by saving you money. And, it will pay off long-term by letting you rest secure in knowing you have the best coverage for your investment.