The Idiot’s Guide to Finding Cheap Auto Insurance

If you’re on a tight budget, quality auto insurance coverage may seem impossible to obtain. Especially if you have blemishes on your driving record, car insurance premiums can get pretty pricey. In reality, though, finding affordable car insurance is not that difficult if you adhere to a few basic guidelines. Employing the right shopping strategies will help you secure auto insurance coverage that meets your needs and accommodates your budget. Even if you don’t know a thing about car insurance, affordable coverage is still within your reach. Read on for helpful tips on how to find cheap car insurance easily.

Before You Shop

Before you even begin looking for cheap car insurance, order your free credit report. This should only take a few minutes, and, in most cases, you can view your report online. Car insurance companies will pull your credit report to help determine your rates, so you can minimize your insurance costs by cleaning up your credit. Once you have your free report, look through it carefully for errors and negative items that you could easily fix. For instance, if you owe one of your creditors a payment, bringing the account current will improve your chances of finding cheap auto insurance.

The Shopping Process

Almost always, you’ll find the cheapest car insurance rates if you shop online. One of the benefits of online car insurance is that the market is highly competitive and incredibly easy to access. You can shop for cheap car insurance quotes online in two ways. First, you could visit the individual sites of various insurers and request quotes one by one. Alternatively, you can visit an independent car insurance site that offers multiple quotes at one time. Whichever method you choose, make sure you compare the rates of at least three or four different insurers.

Structuring Your Policy

When you go to build your car insurance policy, you’ll want to design it in a way that will keep your premiums as low as possible. The two biggest factors that will influence your premiums are your coverage levels and your deductibles. In deciding how much coverage you want, remember that more coverage will obviously translate into higher premiums. However, don’t cut off your nose to spite your face; selecting the bare minimum amount of coverage may end up costing you more if you have to file a claim and are underinsured. When you set your deductibles, choose the highest amount possible. A policy with a $1,000 deductible may be up to 20% cheaper than policies with $250 or $500 deductibles.

Taking Advantage of Discounts

Once you know which policy you want, ask the insurer for a list of discounts they offer. Some discounts can trim as much as 20% off your auto insurance premiums. If your insurer doesn’t offer many discounts for which you qualify, consider going with another carrier. Insurers tend to give the most substantial discounts to policyholders with clean driving records who hold multiple policies with the company. To maximize your car insurance savings, you might want to insure your home or apartment through the same carrier. A few of the most common discounts include those for senior citizens, car safety equipment (anti-lock brakes, anti-theft systems, airbags, etc.), good students, and members of certain professional organizations or clubs.