How to Save Money on Your Car Insurance
Whether you buy guaranteed auto protection (GAP insurance), collision coverage or another type of policy, you need to have insurance if you want to operate a car. Auto insurance protects you from the high costs that often come with car accidents.
In most states, you need to have insurance before you can register your vehicle. You will need to purchase a policy that meets the minimum coverage requirements in your state.
However, you also have the option of purchasing additional coverage.
There are several types of car insurance policies you can obtain, including comprehensive insurance and classic car insurance.
It depends on the type of vehicle you have and the level of coverage you want and can afford. Once you know what you are looking for, you can find an insurer that meets those needs.
Learn everything you need to know about cheap car insurance below.
Types of Car Insurance Policies
One common type of auto insurance policy is comprehensive coverage. It covers the cost of auto repairs and replacement parts in the event of:
- Theft or vandalism.
- Natural disasters.
- Falling objects.
However, comprehensive insurance does not cover the cost of damages caused by a collision. For that, consider purchasing collision coverage.
If you are involved in an accident and need to pay for repairs and replacements, this type of coverage will cover the full or partial cost.
For medical coverage, there are two types of policies you can purchase: liability coverage and medical payments coverage. The former is broken down into two categories:
- Bodily injury – If you are at fault in an accident, liability coverage will cover the medical expenses for the other person(s) involved.
- Property damage – If you damage someone else’s vehicle or property, this will cover the cost of repairs.
Medical payment coverage is a no-fault insurance policy that will pay for your medical expenses, even if you caused the accident.
Uninsured and underinsured coverage is another popular coverage option. It protects you in the event that you are in an accident with someone who is driving without insurance or has coverage limits that do not meet your state’s requirements.
Motorists who are leasing or financing a vehicle may need to obtain GAP coverage.
In the event that your vehicle is totaled, you may still owe money to the lender or dealership to cover the remaining months due on the vehicle. GAP insurance can help you pay that cost and settle your debt.
How to Find Car Insurance Quotes
Before you begin looking at car insurance quotes, it is important to know what kind of insurance you need. Start by assessing your needs and those of your family, if applicable.
If you have not yet paid off your vehicle, you may want to invest in GAP insurance. However, for some motorists, purchasing a comprehensive policy is enough.
Once you know what you need, conduct your own research. There are numerous car insurance companies in the market, including State Farm, Geico and Progressive auto insurance. However, they will not offer the same rates.
There are several factors that affect the car insurance quotes you receive, such as:
- Your driving and claims history – The more driving infractions you have on your record, the riskier you seem. As such, you will likely pay a higher premium. By the same token, if you have had at-fault accident claims in the past, it may affect your insurance costs.
- Your age – Younger drivers are statistically more likely to be involved in accidents. As a result, insurance companies taking on risk will increase premium rates for young drivers.
- Your geographic location – As vehicle theft and accidents is more likely in metropolitan areas, drivers living in rural areas tend to pay less for car insurance.
Before you commit to one insurance company, look for discounts on your car insurance rate.
You may qualify for a discount on your premium if you buy several policies, for instance. Some companies offer discounts to students for good school performance.
Many companies like Travelers auto insurance and Progressive car insurance also offer discounts to current policyholders to remaining claim-free and/or accident free for a certain amount of time.
With this in mind, it is important to compare companies and see which one will give you the best deal.
Note: In most states, driving without insurance is against the law. While the specific consequences vary by state, failing to purchase insurance usually results in paying a steep fine, facing a license suspension and jail time.