Shop Around For Cheap Car Insurance In 2017
Car insurance is an essential part of being a car owner. There are ways to cut down on your bill, like finding coupons and promo codes to apply, but the bottom line is that every car driver needs to be insured before they set out on the road. Some insurance is required by law, while other types are recommended if you want to avoid an expensive bill in the event of an accident.
Every state in the US has different car insurance requirement. Liability insurance is legally required in most states; this covers property damage and any injuries to other drivers or passengers in an accident that was found to be your fault. If you look at the car insurance requirements for each state, you will see that they have three different figures for the minimum amount of liability insurance required under state law. For example, in Maine, the figures are 25/50/25. This means that you need to have liability insurance amounting to $25,000 for bodily damage per person, $50,000 for the total cost of bodily damage and finally, $25,000 to cover the costs of property damage.
One option to cut the costs of your car insurance is to only buy the minimum liability insurance in the state where you live, but this can sometimes be a false economy. If you are at fault for a serious accident, the costs in bodily and property damage could easily far exceed $50,000. This would leave you liable to those costs out of your own pocket, and this could run into hundreds of thousands of dollars if the injuries sustained by other people are serious enough. Some people just don’t realize how much cheap auto insurance can help with your bottom line.
There are other types of insurance that are only required by law in some states; you should make sure you check carefully what you need to have where you live to ensure that you don’t inadvertently break the law. Collision coverage pays out in accidents where you are at fault and covers the cost of damage to your own car. The cost of collision insurance is calculated on how much your vehicle is worth at the time you take out the policy. Comprehensive coverage will cover the costs of any damage to your vehicle that doesn’t result from a crash; anything from running over a deer to criminal damage.
Collision and comprehensive insurance are much more expensive than liability insurance alone, but they still work out cheaper than paying the cost of vehicle repairs out of your own pocket should you have a crash or be involved in another incident. Many people taking out a loan to buy a car will find that lenders require you to take out collision and comprehensive coverage, whereas if you drive an older vehicle that has been fully paid for, you might be able to manage on liability insurance alone — after all, it might not be worth repairing an older car at all if it is involved in a serious collision.
A few states actually require personal injury insurance, which pays for your own medical bills in the event you are involved in a crash. If it is not legally required, skipping personal injury insurance can save you a lot of money, especially if you have an adequate health plan that would cover those costs anyway. This is one of the ways to get the cheapest car insurance options.
There are a few ways to try and cut costs on your car insurance without skimping on protection. You should shop around to see whether different companies will offer promotions, and give you cheap car insurance quotes. Many people stick with the same insurance company when there can actually be good deals available elsewhere. It takes a bit of work to do the research, but the Internet has made this much easier.
While shopping around, you should look for companies that offer cheap car insurance deals if you already have some other form of insurance with them; these are called bundled policies. While these may be cheaper, don’t assume that all bundled policies are a good deal. You still need to do your homework to calculate if you really are saving money or not.
Increasing the deductible on your car insurance — the amount you are willing to pay out of your own pocket before the insurance pays out — can cut the cost of your premium. Insurance with a deductible of $100 will be more expensive than one with a deductible of $300; you would have to be willing to pay the cost of minor repairs costing under $300 or the first $300 of any major repairs if you take this option, though.
Insurance costs less for cars which are considered “low risk.” You can save yourself money on insurance by choosing family cars and avoiding the high-speed sports models. Insurance companies will often determine the cost of policies based on driving habits too, so a few changes in the way you drive your vehicle could save you a significant amount. Use your car less, drive safely and avoid tickets and next time you need to buy insurance you will find your bill going down. In addition, insurance companies will offer cheap car insurance deals to people who are financially sound so that a good credit score can save you money; and not just on car insurance but on lots of other bills too.
There are also ways that you can earn reductions on your car insurance. Taking an advanced driver’s education class to improve your defensive driving techniques could lead to a reduction of up to 10% on your insurance costs. Taking a similar course after receiving a ticket may not earn you a discount, but it could help prevent the usual price increase that you could expect in such a situation.
Car insurance is one of those facts of life that needs to be paid for if you want the convenience of having your own vehicle to drive. There are legal requirements that need to be adhered to, but also other potential costs to be taken into consideration when calculating what insurance you need. In trying to save money, you should never cut corners with insurance, or you could face a hefty bill in the event you are involved in a car crash. A small amount of money once a year is better than hundreds of thousands of dollars if you are found to be at fault for a collision.