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Finding Cheap Car Insurance: The Basics

When it’s time to shop for auto insurance it’s easy to get confused with the complexity involved in finding the best and cheapest plan for you. Buying auto insurance is not a simple task and shoppers will benefit greatly by asking questions and understanding the ways in which insurance works. This will in turn help you pick the best plan and better rates each year. Here are some of the things that you should know when on the hunt for good, cheap car insurance.

Using Deductibles Wisely

A deductible can be a great way to save money, but only if you have money saved up for an emergency. By keeping a sizable cash savings on hand you can plan to pay the first part of any potential claim on your own and in return pay much lower premiums over time.

What Type of Car Do You Have?

Many have heard that some cars are cheaper to insure than others. Some give drivers the opportunity to have lower rates while other types of cars come with much higher premiums. One rule of thumb is that any car built for speed has a tendency to be more expensive to insure. This includes new-wave chariots like V8 versions of classic street cars, upscale-branded sedans, and any other specialty ride with a higher price tag. Another tip is to look at what kind of car is being most frequently stolen, since this drives up risk for insurers. Overall, it’s best to choose a car that’s reliable, not too flashy and that isn’t the “hot” car at the moment.

In addition, some cars are cheaper to insure because they carry higher safety ratings. Small cars like the Toyota Corolla and Toyota Scion are examples of this, along with other options like the Subaru Outback and the Chevrolet Sonic, a new small ride with a high MPG design.

Consider the Extras

Some of the items that come standard with many policies are just going to pad your rates. Ask your insurer if you can drop roadside assistance, especially if you have AAA or another driver in your household. Otherwise, you may end up paying more for something you will never need to use.

The Best Coverage for You

Experts do not recommend that consumers skimp on coverage. That said, if you own your vehicle free and clear, you may not need to worry about every little bit of damage to your car. Collision coverage, which will cover damage to your vehicle, and comprehensive coverage, which covers theft, vandalism and other woes, are great to have but have a tendency to push insurance rates up quite a bit. If your vehicle doesn’t have a high market value, these coverage options may not be worth your premium dollars.

Know Your State’s Insurance Policies

Auto insurance also varies from state to state. In some mid-atlantic states for example, traditional insurance systems still apply, where a primary at fault driver’s insurance plan must pay for accident claims. In states like California, old systems have been replaced by new “no-fault” or “comparative fault” systems that change the way insurers pay out for accidents. Knowing how your state system works can help you choose a more compatible plan.

These are just some of the ways that drivers go about choosing the right auto insurance plans for an individual or a family. In order to get the coverage that fits you and your family the best, be sure to sit down with your insurance agent and ask questons.