How do you find cheap auto insurance?

Answer 1

One of the things to understand is that "cheap" is usually not "better". You should not shortchange yourself in the protection that you get, because that is just what insurance is: protection.

Depending upon the coverage involved, the protection can be against injury or property claims of other parties that arise from your careless operation of a car (liability coverage). The protection can also involve protecting you from the carelessness of another driver that results in your injury (uninsured motorist coverage and personal injury protection coverage). The protection can also involve having a source of money to repair your damaged vehicle resulting from a collision or some other covered occurrence.

Here are some ways to lower the cost of auto insurance:

1. Maintain a good driving record. Credits are often given if you are accident-free or ticket-free for some number of years.

2. Shop several companies to determine their respective rates. A rate is a cost per unit of insurance, and therefore translates roughly into the premium).

3. If possible, have your car insurance with the same company that insured your home; discounts for multiple policies are often offered.

4. If possible, limit the number of miles driven per year. That way, you are less likely to be involved in a collision, and the insurer's risk is lower. That will translate into a reduced premium.

5. Increase your collision and comprehensive deductibles. A deductible is the amount that you have to pay out of pocket for repairs resulting from a covered occurrence before theinsurers responsibility to pay is triggered.

6. If you have an older car, you may want to consider dropping collision coverage altogether.