Affordable Car Insurance – What To Do To Keep The Rates Down
Car insurance is a necessity for every car owner in the US. As with any type of insurance, it’s important to compare companies for rates and coverage. The cheapest option is not always the best choice and it’s worth taking a few minutes to find out which company will be the most affordable for your needs.
What cars are cheaper to insure? What discounts can I get? Which companies are good? We tell you everything you need to know about cheap car insurance, so you can keep your rates down without sacrificing any coverages or benefits.
Quick Tips
1. Compare quotes online. You can get a free and easy quote comparison on our site that will help you find the best rates available in your state.
2. Raise your deductible in exchange for a lower premium. If you're young and don't have many assets, raising your deductible from $250 to $500 can save you hundreds of dollars per year on premiums, as insurance companies expect younger drivers to be more prone to accidents, which cost more money to fix or replace.
3. Raise your liability coverage limits. Increasing the liability coverage limits on your policy will help to protect you against lawsuits if you get into an accident and cause damage to another car or person, while raising your deductible will help keep the cost of premiums down.
What is Car Insurance?
Car insurance provides protection for consumers in the event of an accident in which a driver is at fault. Protection can include reimbursement for medical bills, property damage and more, as well as legal costs associated with accidental injury or death of passengers, pedestrians and other drivers involved in an accident. You can find out more about what types of coverages are included in car insurance policies by checking out our guide to how car insurance works .
How Does Car Insurance Work?
Car insurance companies offer a variety of packages and options to meet your needs. The first thing you should do is make sure that you have liability coverage, which can be purchased with collision coverage or on its own. The amount of liability required by law will vary from state-to-state, but it’s usually at least $50,000 per accident. There are many other coverages that can be included in a policy as well, which are explained in detail throughout this article for easy understanding. If you're under 25 and just learning how to drive, check out our guide to the best car insurance for college students .
What is Car Insurance?
Types of Auto Insurance Coverage
There are many common types of car insurance coverage, and each one can help pay for damages in the event of an accident. The specific types of coverage that you’ll need to purchase will depend on your risk factors, but this guide will explain each one in more detail. Here are the most common types of auto insurance:
Liability Insurance: This type of auto insurance is required by law and it protects you from accidents that cause physical injury or property damage. It can cover medical costs, legal fees and more, up to a certain amount. Liability coverage can be purchased separately from your auto insurance policy or bundled with collision coverage.
Collision Coverage: This type of auto insurance covers accidents that involve the car’s body, including damaged paint and interior components. It also covers injuries sustained by passengers and pedestrians in an accident. Collision coverage is typically included in liability policies, but it can also be bought on its own.
Comprehensive Coverage: This type of insurance protects you against property damage and theft of your car or other vehicles while you leave them parked at a public parking lot. It is not required by law, but many insurers offer more comprehensive coverage options than are provided by the standard liability limit to help protect against more costly damages. Comprehensive coverage is not required by law.
Rental Coverage: Some car insurance policies include rental car coverage, which helps cover expenses incurred when your vehicle is damaged or stolen while it’s not in your possession. It’s typically applicable to cars rented on a daily basis or used for business purposes, and it can help cover expenses such as gas and maintenance. You can add optional coverage for additional costs; there are also some cheap auto insurance companies that offer only collision coverage for free.
Medical Payments Coverage: This type of auto insurance covers medical payments to people injured in an accident you cause, as well as property damage caused in an accident by another driver if they are not at fault. It usually covers up to $1,000 per person after a policy’s deductible is met.
Underinsured/Uninsured Motorist Coverage: This type of coverage helps protect you in the event that another driver is at fault in an accident, but doesn’t have enough insurance to cover the costs. It also helps cover injuries suffered by other passengers or pedestrians hit in an accident by a driver who doesn’t have insurance or is underinsured. It can also cover your legal fees if you are found liable for damages caused by a collision. Uninsured or underinsured motorist coverage is optional, but it is highly recommended.
How to Choose the Best Car Insurance Policy
There are many factors to consider when choosing car insurance, and you will want to thoroughly research each one before making a final decision. Choosing the cheapest insurance isn't always the best idea; you should also consider how reliable your insurer is as well as how much money you're willing to spend on premiums every month. Here are some important factors that should be considered when choosing a policy:
Comprehensive and Collision Coverage: The main difference between these two types of coverage lies in what they cover. Comprehensive insurance covers damage to your car caused by normal wear and tear, while collision coverage protects your car against accidents.
The main difference between these two types of coverage lies in what they cover. Comprehensive insurance covers damage to your car caused by normal wear and tear, while collision coverage protects your car against accidents. Major Injuries: If you have minor injuries covered, you should also consider the amount of coverage you want for major injuries. The costs of treating a major injury can be significantly higher than those of a minor injury, so you'll want to assess how much medical care you're able to afford before deciding on the right level of coverage for your needs.
If you have minor injuries covered, you should also consider the amount of coverage you want for major injuries. The costs of treating a major injury can be significantly higher than those of a minor injury, so you'll want to assess how much medical care you're able to afford before deciding on the right level of coverage for your needs. Liability Coverage Amounts: Insurers will often offer different liability limits for drivers under different ages. For example, some states allow drivers under 21 to have no liability coverage at all. If this is the case in your state, check with your insurance company to see what limits are available for people under 25 years old.
Insurers will often offer different liability limits for drivers under different ages.
Conclusion
Even if you drive a relatively inexpensive car and don’t carry a lot of expensive personal belongings, auto insurance is still very important.
Hopefully, this guide has helped you gain a better understanding of the different types of car insurance available. If you have any questions, or if you think that we missed something major in this guide, please let us know in the comments section below. We look forward to hearing from you!
Frequently Asked Questions (FAQ)
How much should I budget for car insurance? This is a good question and everyone has their own opinion on the matter.