Inexpensive Car Insurance
There are a number of ways that consumers can save money on auto insurance premiums while getting the coverage required by their state. While state mandatory limits are the minimum legal coverage, some drivers should carry additional insurance. Good drivers with a clean driving history can often get more inexpensive car insurance and coverage for cheaper rates. For other drivers who may be considered “high-risk” or families on a budget, there are ways consumers can get inexpensive car insurance while getting all the coverage they need.
State Minimum Requirements
State minimum car insurance limits are primarily intended to protect third parties who may be injured by the negligence of the insured driver. Minimum state car insurance limits generally do not provide enough protection to cover the financial assets of a policyholder should he or she be sued. Drivers who own a home or have other financial assets should carry additional liability insurance.
For drivers with a good driving record, liability coverage is one of the least expensive types of insurance protection, and it should be relatively easy for them to find cheap car insurance from a reputable insurance company.
Medical Payments and No Fault Insurance
No fault insurance is mandatory in several states and it covers medical bills and other expenses incurred by the insured for injuries arising from an auto accident. Some states offer basic (mandatory) and optional coverage. Optional coverage adds to premium costs.
Medical payments insurance and PIP car insurance are usually inexpensive types of coverage and provide liability protection against medical bills incurred by the insured due to an auto accident, up to the limit of the policy which is usually between $1000 and $5000.
If a driver already has health insurance, this type of coverage may not be needed, and may be declined to maintain inexpensive rates.
Uninsured and Under-insured Motorist Insurance
Some states require that drivers carry uninsured motorist coverage. Uninsured motorist coverage acts like liability insurance, but it covers the insured driver and car for damages caused by the negligence of another driver who has no insurance, or who has insufficient insurance to cover the insured’s damages.
In effect, it becomes the insurance for an uninsured driver. This car insurance is inexpensive and drivers should protect themselves with this coverage even where it is optional, because you never know when you can end up in a car accident where the other driver is underinsured or has no insurance at all.
Collision and Comprehensive Insurance Coverage
Collision and comprehensive insurance are optional types of coverage which cover damage to your vehicle. Consumers with older cars that are not financed should consider dropping these coverage since older cars have low cash or replacement value. However, collision and comprehensive coverage are mandatory for financed or leased vehicles since banks, lenders, and finance companies want to protect their investments. Also, consider gap coverage.
As a rule, cars with a value of less than $2500 cost more to insure for damage than they are worth. Raising deductibles can lower premiums but the insured must be able to pay the deductible if the car is damaged. Collision and comprehensive car insurance are generally inexpensive, and may be worth buying for full car insurance coverage.
Towing and Roadside Assistance
Towing and roadside assistance are cheap, optional types of coverage, usually costing $25 to $50 for towing the insured’s car following a breakdown or accident. It may cover part of the cost of a repair truck if repairs are completed outside a repair shop.
Although this coverage is for inexpensive car insurance, drivers who belong to auto clubs (AAA) probably can skip it since their auto club membership provides the same coverage and they do not need the extra insurance.
Rental Car Insurance
This is another optional coverage which provides a limited amount toward a rental car for up to thirty days if the insured vehicle is disabled. Policies vary on this coverage and it may only pay for the rental if the insured car was damaged in an accident.
Before buying rental car insurance, consumers should know exactly when a rental is covered. Some collision and comprehensive options already provide rental car coverage when the insured vehicle is being repaired after a covered loss.
Saving Money on Auto Insurance – Inexpensive Rates
Consumers should look at the various optional coverages offered by insurance companies and decide which inexpensive car insurance coverage they really need and which they can manage without. Policyholders can then compare the rates offered by different insurance companies and choose the best coverage for the cheapest price.
Paying for coverage for six months or a full year at a time saves money since monthly payments are subject to finance or service charges. Car insurance companies offer many other discounts as well.
Safe Drivers Save Money
Drivers who have a clean driving record without moving violations, tickets, citations and accidents, and maintain good credit scores get the cheapest rates. Students who maintain a GPA of 3.0 or greater with good attendance records receive discounts. Drivers who voluntarily take a defensive driving course every two to three years can save up to 10% on their premiums through either company or state mandated discounts.
Drivers who carry other insurance like homeowners coverage may save money by bundling their policies with the same insurer.
Car Insurance Quotes
No matter how cheap you think your inexpensive car insurance is, it is important for consumers to compare car insurance quotes online. It’s easy to get free car insurance quotes online and to compare the rates of different companies and coverage to save the most on car insurance.
Buying inexpensive car insurance doesn’t just happen. Enter your zip code and begin a car insurance quote now to start saving money with cheaper rates. MyCarInsuranceRates.com will help you find inexpensive car insurance.
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