How to Get Cheap Car Insurance Quotes
If you are wondering how to get the best car insurance rates, don’t worry, you are not alone. Since car insurance is required for the drivers of 49 out of 50 states, it is a major concern, and finding the least expensive rates is important in maintaining compliance with the law and sufficient protection against financial loss while still keeping your monthly budget in check. Here is a six step process to help you do just that.
Step 1: Determine what you need.
The first step in getting cheap car insurance quotes is to determine what you need in terms of coverage. Each state has its own minimums for bodily injury liability, personal property liability and personal injury protection so, at the very least, you should get the minimum amount required by your individual state. But is that really enough? Many states have taken a very passive approach in their requirements and designing your car insurance policy by their standards could result in you having too little insurance when an actual accident occurs. Insurance agents and online statistics can help you determine what more adequate limits and deductibles are if you are concerned that your state minimums are too low.
Step 2: Choose a deductible.
Deductibles are the dollar amounts that the insured is expected to pay out of his or her own pocket after an insurable incident. The higher your deductible, the less risk the insurance company takes on because the more you have agreed to pay out of pocket and prevent them from having to pay. This is an extremely important thing to consider, because the deductible is your financial responsibility. It means that you must pay that amount in order to get your car running again—and that is a big commitment. So while your high deductible can help bring your premium down, it is going to be more expensive in the long run if you can’t afford your deductible.
Step 3: Choose your limits.
After you choose deductibles, you need to decide what your limits will be. Limits are the maximum amounts that your insurance company will pay for your insurable incidents. If you have an accident or claim that exceeds your limits, the financial responsibility falls back into your lap. While low limits reduce your premium, they also increase the odds that you will have to pay something out of your own pocket for claims.
Step 4: Look for discounts.
Many car insurance companies offer discounts for defensive driving classes, anti-theft devices, prepayment of premiums and other factors. Finding out what discounts insurance companies offer is vital in ensuring that you get the cheapest car insurance quote possible. It can also give you an indication of additional steps you can take in order to add to the discounts you qualify for. Luckily, discounts are ongoing so even if you don’t qualify for any discounts right now, you may upon policy renewal.
Step 5: Decide what coverage you want.
While your state requires certain coverages, they might not require things like uninsured motorist coverage or comprehensive coverage—which covers theft, vandalism and collision claims. These coverage options offer important benefits that you might not be able to afford to go without, so read about them in detail and determine whether or not you think they are important to your insurance plan. At any rate, you can always get quotes for them to at least determine whether or not you can actually afford them.
Step 6: Compare prices.
It is not a good idea to get car insurance quotes from just one insurer, after all—insurers all want your business and many of them use competitive pricing techniques as a way to attract new customers. If you want to know how to get cheap car insurance quotes, the most basic answer is just to compare the policies of many different insurers. Make sure that you compare comparable deductibles, limits and coverages so that you get an accurate picture of the value and price of each potential plan.
When evaluating car insurance coverage options, price is not the only factor to consider. Try to get a good overview of all the different aspects of the coverage and choose the plan that provides the best protection for you at the most affordable price. It is also a good idea to check out the AM Best rating of any insurer you consider so you can make sure they are financially stable enough and worth your premium payments.