5 Ways to Get Low Cost Auto Insurance Without Sacrificing Coverage

Drivers across the country are trying to find ways to make driving more affordable. Some may be spurred by the ever-increasing cost of gas, while others may be trying to make widespread cuts in various different areas of their budget.

Most people are paying far more than they need to for their auto insurance, so spending time shopping for rates and analyzing this expense in more detail may help you to identify savings. Auto insurance is a regular cost of driving that all drivers must pay, so taking time to identify savings today can help you save money on this expense when you pick an auto insurance company in the future. Try our FREE quote comparison tool by simply entering your ZIP!

Why Coverage Should Not Be Reduced

Most drivers do have specific coverages they are required to purchase. For example, in most states, auto insurance laws require drivers to maintain a minimum liability insurance policy. If you have an auto loan on your vehicle, your lien holder may also require you to maintain collision coverage. The minimum amount of coverage required may be set by your state and lien holder, and failure to comply with these requirements could have serious consequences.

If you don’t maintain coverage required by your lender, you could be in default of your loan agreement. If you don’t meet state requirements, you could face fines, suspension of your license or in some cases even imprisonment. Further, coverage protects you from financial liability if you have an accident. While you do not want to reduce coverage to save money on your cheap auto insurance, there are other ways you may be able to save money on your premium.

1. Use a Rate Comparison Website

A great option is auto insurance comparison. Consider is using a rate comparison website to compare auto insurance rates offered by different insurers. There are several different comparison sites available, and some are as easy to use as entering your zip code into a request form. These sites generally do not provide you with a full rate quote, but instead they provide you with a rate estimate.

They can provide you with numerous estimates with minimal time and effort, and these estimates can help you to identify which auto insurance companies may offer you savings.

Because of this, many people who shop for auto insurance rates will first use a rate comparison website before shopping for full rate quotes.

2. Shop For Rate Quotes

To identify specific savings, you will need to shop for full rate quotes. This can be done by contacting auto insurance companies directly or by using the services of an auto insurance broker. If you do not want your coverage amounts to change, be sure that you have a copy of your current auto insurance policy in front of you when you request quotes.

Keep in mind that each auto insurance company may offer you a different rate. You can use a rate comparison site to determine which companies may be more worthwhile to contact, but you may still want to reach out to a few different companies to get several full rate quotes.

3. Look for Discounts

Most auto insurance companies offer different types of discounts. Taking time to educate yourself about the auto insurance discounts available may help you to identify ways you can save more on your auto insurance. For example, one car insurance company may provide you with savings if you take a driver’s safety course online.

Another may offer you savings if you drive with a GPS-type monitoring system in your car for several months, and the GPS monitoring system will determine how safely you drive. Still another company may offer you savings if you have not filed a claim within a certain period of time. You can review these different offers available, and you may determine that you are more likely to qualify for savings with one company over another.

These are just a few of the many different types of discounts available, so take time to research discounts fully.

4. Pay Your Premium in Full

Many drivers opt to pay their auto insurance premium on a monthly basis. In some cases, an auto insurance premium may cost a driver $1,000 or more over the course of a year. If you have multiple drivers, multiple cars or both on your policy, your premium may be considerably higher than this. This is a lot of money to pay out of pocket in a lump sum.

However, you may not realize that most auto insurance companies charge a convenience fee to you on a monthly basis when you choose to pay your premium in installments. Over the course of a year, this may equate to $30, $50 or more in additional fees paid simply because you paid your premium on a monthly basis. It may be better to create your own escrow account to pay into on a monthly basis, and pay your premium in full for savings.

5. Adjust Your Deductible

Perhaps one of the best ways to save money on your car insurance premium is to adjust your deductible. Each time you file a claim on your car insurance policy, you will be required to pay your deductible. Some drivers may file a claim almost yearly, and others may not file a claim over three years, five years or longer.

The amount you pay for your deductible is at your discretion, and you can choose to increase the deductible to lower your premium. Consider how often you historically have filed claims on your policy as well as your ability to pay for a higher deductible out of pocket if you do file a claim. Contact your insurance agent today to get quotes for your premium with your deductible adjusted at several different higher levels. Enter your ZIP into our FREE quote comparison tool to start saving big today!

Final Thoughts

Your coverage provides you with financial protection in the event you do get in an accident or otherwise need to file a claim for theft, fire or another mishap. While you do want to save money on your coverage, adjusting your coverage limits is not the best option. Instead, consider how these methods can help you find savings on your policy without altering your coverage.