Companies Auto Insurance

The cheapest auto insurance is the goal for most drivers. With a little research and some patience, it’s a goal most drivers should be able to reach. Follow these steps to learn the areas of insurance policies where savings are available and then seek quotes to find which company will offer the cheapest auto insurance policy.

Where Will the Cheapest Auto Insurance Come From?

There are only a few areas in an insurance policy where a driver can make some decisions that will impact the price of the policy. Understanding those areas makes it easier to find the cheapest auto insurance.

• Liability coverage. Most experts recommend limits of at least $100,000/$300,000/$100,000 – that’s $100,000 for one person who is injured, $300,000 for all injuries in an accident and $100,000 for all property damage. However, liability coverage can be set much lower, which will lead to significant insurance savings. Don’t go lower than your state’s minimum (all but 2 states set a legal minimum), which probably is no more than $50,000 for all injuries in an accident and $25,000 for both property damage and payment for one injury. Remember that in an accident that seriously injures several people and is our fault, the injured can sue you personally if your policy isn’t large enough to cover all their damages.
• Deductibles. A deductible is connected to both collision and comprehensive coverage. Common deductibles are $250 to $500, but deductibles of $1,000 or more are available and can save on the cost of car insurance. The deductible is the amount the driver pays out of pocket before the rest of the claim is handled by the insurance company. So if a claim is $1,000, there is no cost for the insurance company. Drivers must decide if they can afford the higher deductible – and risk a rash of claims – in exchange for much lower insurance costs.
• Discretionary coverage. Both collision and comprehensive coverage can be waived, which will save at least hundreds of dollars in most policies. Some insurance experts recommend doing just that if the vehicle is older and has lost much of its value. For example, if the cost of the deductible is 25 percent or more of the value of the vehicle, some experts recommend dropping collision – which pays for damage due to auto accidents – and comprehensive coverage – which pays for damage unrelated to an accident, such as a flood, fire or vandalism.

One More Way to Help Get the Cheapest Auto Insurance

Now that you’ve considered where to set the liability limits for your insurance policy, the deductible limit that’s best for your situation and whether you can drop collision or comprehensive coverage, it’s time to consider insurance discounts. Most insurance quotes attempt to gather the information to apply every available discount. But it’s a great idea to ask if any others are available, such as discounts for multiple insurance policies, safe occupations, low mileage, driving safety classes, good grades from young drivers, certain group memberships and vehicle safety features. Considering all these factors, from liability insurance all the way to insurance discounts, you should end up with the cheapest auto insurance available.