Cheap Car Insurance

No one wants to pay a lot for his automobile policy, but cheap car insurance could wind up costing more later. Make sure you understand how rates are determined and how to keep your costs down to avoid being taken for a ride.

How Car Insurance Rates are Determined

When it comes to setting up your insurance rate, most of the factors are in your hands. Do you get a lot of speeding tickets in your expensive sports car? Then you can probably kiss cheap car insurance goodbye. On the other hand, if you only drive your little sedan to and from church once a week, you may save hundreds of dollars.

There are dozens of things that a car insurance company considers before offering you a policy. Many of them, like your age and sex, are out of your control. However, many other issues can be improved upon, such as:

Driving History

Staying out of trouble can save you money on your car insurance quotes. Many companies offer a discount if you go a certain number of years without an accident or traffic violation. If you do have past violations, you may be able to take a safe driving course to get back in the insurance company's good graces.

Vehicle Make and Model

Some vehicles carry higher car insurance rates because they are more likely to be driven recklessly or they do not have a high safety rating. Other cars cost a lot to repair if they are damaged in an accident. Classic vehicles may feature hard-to-find parts, which can drive up the cost of even a simple repair. By the same token, if your main vehicle has good safety features and is a popular model, you might get a better rate.

Type of Driving

Having a long commute through heavy metropolitan traffic will make your rate higher than someone who drives a few miles through farmland. Although the money you save on insurance premiums by working closer to home is probably not worth finding a new job, it is something to consider as you job hunt.

Many companies offer discounts that can lower your rates. Your key to cheap car insurance may include:

• Good grades for student drivers
• Insuring more than one vehicle on the same policy
• Adding safety features, like anti-theft devices or daytime running lights

How to Find Cheap Auto Insurance

If you want to find auto insurance at low prices, be prepared to shop around for your coverage. Rates can vary significantly between providers for the same level of protection but taking the time to get quotes from several providers can result in considerable savings.

Limit Your Coverage

One way to keep coverage costs down is to buy a policy that provides a limited level of protection. Many states have set minimum coverage requirements for third party liability insurance. By purchasing a policy that meets this threshold, you will be able to stay legal without overpaying for coverage.

Buy a No-Frills Policy

Insurance providers know that their customers have different needs when it comes to buying coverage. For example, Allstate offers a Value package to consumers who want to put coverage in place without paying for extras that add to the product's cost. A driver who chooses this option can take advantage of the company's automatic payment option for premiums.

Find a Discount Insurance Company

Some insurance companies offer policies specifically to consumers who want to pay low rates while staying legal. SafeAuto is one company that specializes in serving this niche market. It offers flexible payment options and does not subject drivers to a credit check when putting together a policy. This company keeps coverage costs low by selling policies by phone and online. SafeAuto doesn't employ sales representatives, which also helps to keep coverage affordable.

The General is another car insurance provider offering low rates to policyholders. This company will insure most applicants, including drivers with a history that includes accidents or moving violations. They offer low down payments to all policyholders and a monthly payment plan.

When shopping online for car insurance, make sure you work with a reputable and legitimate company. Some websites have been set up to trick users into thinking they are at a real insurance company's site when it is just part of a scam to get your personal information. If a site asks you for personal information without detailing their policy types or has a lot of spelling and grammar errors, it's best to move on.

Ask About Available Discounts

No matter which insurance provider you choose or what specific driving records look like, certain discounts apply universally if drivers take advantage of them:

• Higher Deductibles: Raising the deductible on your insurance policy will lower your premiums, perhaps by $100 or more per coverage period depending on the difference between old and new deductibles. Drivers should note, however, that they must be able to cover that deductible in case of an accident.
• Combination Policies: Many insurance companies provide discounts for insuring more than one vehicle (two cars, a car and a motorcycle, adding a boat, etc.), or combining car insurance with life or home insurance.
• Lower Coverage: By choosing only the basic required coverage, drivers can save significant money on their policies. In certain circumstances, however, such as leases or cars that are not fully paid, drivers may still be required by the lender to carry more than the minimum insurance, which vary by state.
• Full Payment: Most insurance companies offer minor discounts if the policy is paid in full rather than strung out through monthly payments. To save for this, drivers can put away a little each month so they can take advantage of the discount without a sudden hefty bill.
• Prompt Payments: Several companies offer discounts to clients who demonstrate a history of prompt payments.

If your goal is to find low-cost car insurance coverage, you have a number of options available to you. Don't buy a policy that includes provisions you don't really need and be prepared to shop around to get the best rates for the coverage you need.