Finding Affordable Car Insurance
Obtaining car insurance quotes from multiple insurance companies is an important step to take when selecting a new policy for your motor vehicle. If you are looking for cheap car insurance premiums, shopping around is the best thing you can do to reduce your costs, especially if you live in a state like Florida, where insurance prices are sky high.
According to the Insurance Information Institute (III), the cost of insuring a vehicle increased by more than 5 percent from 2015 to 2016. When you compare car insurance rates, however, you can select the best policy for your budget.
Moreover, insurance companies take several factors into account when calculating your premium, including your age and credit history. To learn more about these factors and the steps you can take to reduce the amount of your premiums, review the information below.
Where to Find Cheap Auto Insurance Premiums
To get the best rate on your insurance policy, shopping around is crucial. Gather quotes from at least three companies before selecting a policy and remember to obtain recommendations from friends and family members.
Comparing car insurance quotes online is one of the easiest and most effective steps you can take when selecting a new policy for insuring your motor vehicle. If you choose to obtain a car insurance quote online, you can typically save your application and return to it later, especially if you cannot provide all the necessary information you need to request an accurate estimate.
The amount of your insurance premium will vary depending on your ZIP code, driving history, age, vehicle type and several other factors. However, five of the cheapest insurance companies for safe drivers include:
- USAA. While USAA policies are only available to veterans, service members and their families, the average annual rate of insuring a vehicle through this company is $896, or around $75 per month.
- State Farm. Whether you need a comprehensive car insurance policy or basic coverage that meets your state’s minimum insurance requirements, the average cost of insuring a vehicle through State Farm is $1,337 (around $111 per month).
- Geico. For good drivers who maintain a clean driving record, the average cost of insuring a vehicle through Geico is $1,627 (around $136 per month).
- Progressive. At this affordable car insurance company, the average cost of insuring a vehicle is $1,828 (about $152 per month).
- Farmers. As one of the largest automobile insurance companies in the U.S., Farmers offers good drivers an average rate of $1,855 per year (around $155 monthly).
Keep in mind that you can get cheap insurance quotes from smaller companies as well. While the availability of these policies will vary depending on the state where you live, several small insurers that sell affordable policies. These include Grange, Erie, MAPFRE and Country Financial. Depending on where you live and operate a motor vehicle, other affordable options may also be available to you.
How to Reduce Your Car Insurance Rates
When purchasing motor insurance for your car, truck, van or another type of vehicle, it is important to remember that several factors affect your premium. These include the make and model of the vehicle you wish to insure, the city where you live and your credit history.
If you insure multiple vehicles through the same company, maintain a clean driving record, complete a safe driver course or qualify for any discounts on your premiums, you may be able to reduce the amount you pay.
When you compare auto insurance rates, remember to ask about the following discounts:
- Discounts for vehicle safety features (such as anti-lock brakes)
- Cost savings for good students or safe drivers
- Discounts for accident-free drivers
- Cost reductions for teen drivers who complete a training program
Additionally, your auto insurance rates will vary depending on the type of policy you purchase. A comprehensive vehicle insurance policy costs more than basic liability coverage does. This is because comprehensive insurance policies pay for additional damages that result from theft, fire and other hazards. Some states require you to maintain an active liability insurance policy on a motor vehicle, while others require you to purchase higher limits and additional coverages.
How to Get a Quick Car Insurance Quote
If you need car insurance quotes fast, gather any required information about the driver of the vehicle and the type of automobile you wish to insure. This will help you make the process much faster.
Before requesting a quote from an insurance company or broker, make sure you have access to the automobile’s odometer reading, date of purchase, year of manufacture, make and vehicle identification number (VIN). You must also be able to provide the address at which the vehicle is kept, as this information will affect the amount of your insurance premium.
When requesting vehicle insurance quotes, you must also be able to provide the following:
- The name of the vehicle’s registered owner
- The name, date of birth and driver’s license number of each primary driver
- Information about the driver’s history as a licensed motorist (such as any former driver’s license suspensions under his or her name)
Your State’s Motor Insurance Requirements
When comparing car insurance premiums, keep in mind that most states have minimum insurance requirements that all registered drivers must follow. If you do not meet your state’s minimum insurance requirements, you could face penalty fees, vehicle impoundment or the loss of your driving privileges.
Additionally, if you do not have your state’s minimum insurance requirements, you will be held financially responsible in the event of an accident. Most state laws require you to maintain an active insurance policy on each of your registered vehicles, but not all do.
If you live in a state that does not require you to maintain an automobile insurance policy on your registered vehicles, it is important that you familiarize yourself with the consequences of driving without insurance.
While vehicle insurance is not mandatory in New Hampshire, for instance, you will be responsible for covering the cost of any damages in the event of a collision if you do not have insurance. Therefore, maintaining an active insurance policy on each of your registered vehicles is the best way to protect you and your family from financial responsibility.