If you’re looking for cheap car insurance, there are plenty of ways to save. But finding the best deal for your needs takes a little bit of research.
Whether you’re looking for minimum coverage or comprehensive and collision protection, you’ll want to shop around for the right fit. That way, you can focus on getting the best possible value for your money.
Full coverage
Full coverage insurance is a type of auto insurance that provides you with collision and comprehensive coverage in addition to the state’s minimum required insurance. It can be more expensive than liability-only policies, but it’s also worth the extra cost if your car is valuable or if you live in a high-risk area.
If you lease or finance your vehicle, it’s likely that your lender will require you to have full coverage. This is because they have a financial interest in protecting their investment.
Having full coverage could also save you money on deductibles, which is the amount you must pay out-of-pocket before your insurance company begins paying for damage to your vehicle.
It’s important to compare quotes before choosing a full coverage policy, as the prices of policies vary from company to company. It’s also important to consider your driving record, location and vehicle when making a decision on which carrier to choose.
Deductibles
Deductibles are the amount that you pay out of your own pocket in the event of a claim, and they can be a significant factor in determining how much your policy will cost. They are typically between $100 and $2000, depending on the type of coverage you choose.
You can choose separate deductibles for comprehensive and collision coverage, or you can get a policy that includes both types of deductibles. It’s important to consider your budget, financial situation, and car’s value when choosing a deductible amount.
Insurance companies may also offer a diminishing deductible option, which reduces your deductible as you are accident-free. This works by applying a credit toward your deductible each year you are accident-free.
A higher deductible may save you money in premiums, but it could also mean that you are more likely to file claims and subsequently pay more out of your own pocket after an accident. It’s best to choose a deductible that you can easily afford to pay out of pocket in the event of a claim, while still having enough savings or an emergency fund to cover it if needed.
Safer drivers
If you have a clean driving record and don’t have any accidents or other major violations on your report, there are many companies that offer cheap auto insurance. GEICO and Nationwide both reward drivers who have been accident-free for five years with a 10% safe driver discount.
Another company that offers low rates to safe drivers is Liberty Mutual. The insurer has a safe driver savings option that combines its telematics program with usage-based insurance, so you could save 30% on your premium by maintaining a good driving record.
Women pay less for car insurance because they are less likely to make risky driving mistakes that could result in a claim. However, some states ban the use of gender as a rating factor.
Changing insurance providers is a good way to reduce your premiums, as long as you do so within a reasonable amount of time. It is also important to compare quotes from different companies before deciding on which policy is best for you.
Young drivers
Young drivers have the opportunity to save money by adding comprehensive coverage to their car insurance policy. This option is especially useful for drivers who are planning to buy a new vehicle, are regularly driving in bad weather conditions or live in areas that have high theft rates.
Rates for young adult drivers can vary dramatically from one insurer to the next, so it is a good idea to shop around before making a final decision. Some of the factors that can affect your price include your age, the type and amount of car insurance you need, and your location.
Young drivers can also receive discounts for maintaining a clean driving record, taking a defensive driving course and getting insurance through a group plan. They may also qualify for a multi-policy discount if they rent an apartment and own a car. These can be particularly useful for students who are away at college without their own car.
