Really Cheap Auto Insurance: How to Save Big on Your Car Insurance Premiums

Auto insurance is a must-have for anyone who owns a car. It provides financial protection in case of accidents, theft, and other unforeseen events. However, auto insurance premiums can be a significant expense for car owners, especially those on a tight budget. If you’re looking for ways to save on your car insurance premiums, you’ve come to the right place. In this article, we’ll share some tips and tricks for getting really cheap auto insurance without sacrificing coverage.

Understanding Auto Insurance

Before we dive into the ways to save on auto insurance, let’s first understand the basics of auto insurance. Auto insurance typically covers three things: liability, collision, and comprehensive. Liability coverage pays for damage or injury you cause to others in an accident. Collision coverage pays for damage to your car in case of an accident, while comprehensive coverage covers non-collision events like theft or fire.

When you buy auto insurance, you’ll be asked to choose a deductible amount. This is the amount you’ll pay out of pocket before your insurance kicks in. A higher deductible means a lower premium, but it also means you’ll pay more out of pocket if you get into an accident.

Table 1: Average Auto Insurance Premiums by State

As you can see from Table 1, the average auto insurance premium varies widely from state to state. Factors that can affect your premium include your age, driving record, credit score, and the type of car you drive. However, there are ways to save on your premium regardless of where you live or what factors affect your premium.

Ways to Save on Auto Insurance

1. Shop Around

One of the best ways to save on auto insurance is to shop around. Don’t just go with the first insurance company you find. Instead, get quotes from multiple companies and compare them. You may be surprised at the price differences between companies, even for the same coverage.

When you’re getting quotes, make sure you’re comparing apples to apples. In other words, make sure the coverage limits, deductibles, and other details are the same for each quote. This will help you make an apples-to-apples comparison and choose the best policy for your needs.

2. Bundle Your Policies

Another way to save on auto insurance is to bundle your policies. Many insurance companies offer discounts if you bundle auto insurance with other types of insurance, such as home or life insurance. Bundling can save you up to 25% on your premiums, so it’s definitely worth considering.

3. Raise Your Deductible

As mentioned earlier, raising your deductible can lower your premium. Consider raising your deductible to $1,000 or even $2,000 if you can afford it. This will lower your premium, but keep in mind that you’ll have to pay more out of pocket if you get into an accident.

4. Drive Safely

Your driving record is one of the biggest factors that affect your auto insurance premium. If you have a clean driving record, you’ll generally pay less than someone with a history of accidents or traffic violations. Make sure you drive safely and follow traffic laws to keep your premium low.

5. Take a Defensive Driving Course

Many insurance companies offer discounts if you take a defensive driving course. These courses teach you how to drive defensively and avoid accidents. Taking a course can not only help you become a safer driver, but it can also save you money on your premiums.

Frequently Asked Questions

1. Do I really need auto insurance?

Yes, you do. Auto insurance is required by law in most states. Even if it’s not required in your state, it’s still a good idea to have it. It provides financial protection in case of accidents, theft, and other unforeseen events.

2. How much auto insurance do I need?

The amount of auto insurance you need depends on your personal circumstances. However, most experts recommend having at least $100,000 in liability coverage per person, $300,000 in liability coverage per accident, and $100,000 in property damage coverage. You may also want to consider collision and comprehensive coverage if you have a newer or more expensive car.

3. Can I get auto insurance if I have a bad driving record?

Yes, you can. However, you’ll likely pay more for auto insurance if you have a history of accidents or traffic violations. To keep your premiums low, make sure you drive safely and follow traffic laws.

4. How often should I shop for auto insurance?

You should shop for auto insurance at least once a year. Insurance rates change frequently, so it’s a good idea to compare quotes from multiple companies every year to make sure you’re getting the best deal.

5. Can I cancel my auto insurance policy at any time?

Yes, you can usually cancel your auto insurance policy at any time. However, you may be subject to fees or penalties if you cancel before the end of your policy term. Check with your insurance company to find out what their cancellation policy is.

Conclusion

Auto insurance is a necessary expense for car owners, but that doesn’t mean you have to pay a fortune for it. By shopping around, bundling your policies, raising your deductible, driving safely, and taking a defensive driving course, you can save big on your auto insurance premiums. Keep these tips in mind and use them to get really cheap auto insurance without sacrificing coverage.