Cheapest Car Insurance
From LoveToKnow Insurance
Is it really worth it buy the cheapest car insurance you can find? In this article, you will learn what you need to know to get the best possible coverage from even the most basic car insurance policy.
Cheapest Car Insurance Versus Real Value
The cheapest auto insurance may be great for your bank book, but not so good when it comes to filing a claim. The money that you save on premiums and monthly fees can go out the window when you find out that you have to fork over thousands of dollars for uncovered repairs.
When it comes to finding a deal on car insurance, you need to read the fine print. Even the cheapest insurance should cover the following:
- Personal Injury Protection Coverage: This will cover medical costs for yourself and injured passengers in the event of an accident.
- Uninsured Motorists Coverage: This will provide coverage if you suffer an accident at the hands of an uninsured driver.
- Physical Damage Coverage: If you car is damaged by fire, flood or theft, this coverage will address any associated costs.
- Collision Coverage: This covers damages resulting from a collision caused by you or another driver.
Your car insurance policy should also cover property damage liability (if your car damages someone else’s personal property) and rental reimbursement, in the event you need to secure a vehicle while your own is being repaired.
There is an exception to this advice. If you drive an older car, it may cost you more to obtain uninsured motorist coverage and physical damage coverage than your vehicle is worth. For example, if your car is more than ten years old and valued at below $1,000 and your deductible is $1,000, you may be paying for nothing. The insurance company will write your car off as a total loss and reimburse you for the value of your car less the deductible. $1,000 minus $1,000 leaves you with nothing but empty dreams to show for your timely premium payments.
Do your homework. Know the value of your vehicle before you seek coverage. The best value is the policy that covers your needs but does not include options you do not need.
Do Your Research
If you are searching for a new policy, it best to go with a well-known and reputable carrier. Many insurance companies offer competitive rates and cheap car insurance. Geico, AllState and State Farm provide reasonable deductibles and affordable policies. This is not to say that you have to contract your policy with a big name company, but signing on with a familiar carrier can definitely put your mind at rest. Be sure to research and compare various quotes before making a final decision. Cheap car insurance can disguise a number of hidden pitfalls. You need to be educated about the going market rate of an insurance policy to make an informed decision.
When you finally do contract with a carrier, be sure to request proof of payment and a written copy of your policy. Cheap car insurance is not necessarily a scam, but do keep in mind that there are many unethical individuals out there just waiting to take advantage of an unsuspecting consumer. Knowing the basics can keep you out of trouble.
Getting the Cheapest Car Insurance
You don’t have to contract an entirely new policy to reduce the expense of your car insurance policy. Here a few things you can do to get the cheapest car insurance:
- Evaluate the make and model of your car, preferably before purchasing. Cars that are more prone to theft will increase out of pocket expenses.
- Drive safely and avoid accidents. Although this may seem like obvious advice, having a clean driving record is a key factor in getting the cheapest car insurance. Many companies offer discounted rates for a no claim period of five years or more. If your driving record is not quite so pristine, you may be able to take a defensive driving course to reduce costs as much as 15% or more.
- If possible, consolidate all of your insurance (life insurance, home insurance, medical insurance etc.) under one carrier. If you are willing to contract multiple policies with one company, you can probably get the cheapest car insurance rate.
- Installing safety or anti-theft devices can contribute to reducing costs. As a general rule of thumb, the more difficult your car is to steal, the better your insurance rate will be.
- Consider increasing your deductible or lowing the amount of your coverage to receive lower insurance premiums.
In addition, inquire with your agent about other measures you can take to get the cheapest car insurance.
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