You probably know that there are different types of auto insurance, and you also probably know that different people have different needs when it comes to car insurance. Do you have a brand new car? Do you drive to work or go to school every day? Are you on a tight budget? When it comes to car insurance, one size doesn’t fit all. You’re probably asking yourself: “What type of car insurance do I need?” It’s not an easy question to answer because there are so many factors involved, but in general, the cost and type of coverage you need is mostly determined by three things: your age, your driving history, and the value of your car. So how do you find cheap car insurance that fits your needs? Here are some options for getting the best deal on car insurance.
Estimate the cost of your car insurance
If you know how much you can expect to spend on car insurance, you’ll have a better idea of what coverage you can afford. There are two factors that determine the cost of your car insurance: the type of coverage you need and your driving record. You can get an idea of what your coverage will cost by visiting websites like carinsurance.org or insure.com, or you can call a few companies and request a quote.
Shop around for different types of coverage
Start by finding out what types of coverage you might need. You’ll want to make sure you have enough liability coverage in case you cause an accident that damages another car. Most states require you to have at least $50,000 in bodily injury coverage per person and $100,000 total per accident. To protect yourself against uninsured drivers, you’ll also want to ensure you have Uninsured Motorists Coverage, which is not the same thing as Liability Coverage. To protect your stuff in the car, you may also want to add comprehensive and collision coverage, although this differs from state to state.
Get a quote based on your best estimate of costs
After you’ve gathered information about your coverage needs, get a quote based on your best estimate of the costs for each type of coverage you might need. This is an estimate, so don’t worry about being super exact. You can also ask the companies you get quotes from for an average cost for the types of coverage you want to double check your numbers. Once you know what coverage you want and how much it costs, you can decide how much coverage you can afford. Remember, the more coverage you have, the higher your premium is likely to be.
Try a short-term insurance contract
If you’re moving, have poor driving history, or have a car that is hard to insure, you might want to consider a short-term insurance contract. These can be a good option, especially if you’re in between insurance policies. Short-term insurance companies offer cheap insurance for people who have been turned down by regular insurance companies. As a rule, if you have been driving for at least three years, have a clean driving history, and have a vehicle that is easy to insure, you should be able to get cheap insurance from a regular insurance company.
Try a small-group insurance contract
If you are part of a small group, you might want to check out a small-group insurance contract. You may be able to get lower premiums if your company is classified as a small-group pool. It is important to check with your state department of insurance to make sure your company qualifies. Small-group insurance contracts are often less expensive than standard auto insurance policies because the groups are usually comprised of low-risk drivers. If you work for a company that offers a small-group insurance contract, you may be able to get an even better deal than the standard rates offered to small groups.
Negotiate with your current provider
If you’re happy with your current provider, but you’d like to get a better rate, try negotiating. Call your provider and ask if they have any discounts or special rates available. If you currently have a clean driving record, are older and considered a “low-risk” driver, or have been a long-time customer, you may qualify for a lower rate. Keep in mind that each company has its own rules for discounts and special rates, so it’s a good idea to call around and ask what’s available. With a little research, you may be able to get a better rate on car insurance.
No one likes to think about car accidents, let alone car insurance. As an adult, you have to decide what type of car insurance is best for you. You can get a cheaper rate with a little legwork and research. There are many ways to get cheap car insurance: estimate the cost of your coverage, shop around for different types of coverage, get a quote based on your best estimate of costs, try a short-term insurance contract, try a small-group insurance contract, negotiate with your current provider, and summing up. Now that you know how to get the best deal on car insurance, you can get back to enjoying your life.