How to Get Cheap Insurance for Cars
Automobile insurance is a major cost of owning a car. All states require car owners to buy insurance. Automobile insurance can be expensive or cheap, depending on where you buy it, the type of policy you get and the kind of car you drive. The cost of car insurance can be kept down to more affordable levels by several actions that you, as a car owner, can take. This will take homework and research, but anyone can reduce their car insurance premiums.
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Instructions
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Call your state's Department of Motor Vehicles to find out the minimum required amount of coverage required by law. Purchase just this amount if you're on a tight budget and drive an older car that's not worth a lot. Get the minimum amount of liability to legally drive in your state, instead of opting for full coverage. Choose a type of policy better suited to your coverage requirements and type of car, if you have a bigger budget.
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Keep a clean driving record for lower insurance premiums. Drive carefully and avoid accidents, or your rates will go up. Take driver re-education or enroll in a state-sponsored program to remove points from your license for traffic and speeding offenses. Move out of high-crime areas or out of the city limits for substantially reduced rates. Drive a safe, reliable, family car for the cheapest insurance, as companies base rates on a car's make and model. Trade in your muscle car or high performance vehicle to lower risk factors.
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Research the types of car insurance policies and decide how much collision or comprehensive coverage you can afford. Compare rates extensively before you buy a policy: Use the Internet or the Yellow Pages to locate candidate insurance companies; call and compare prices to find the most affordable rates with the most coverage; discuss the details and options you require for your car insurance; ask about raising your deductible for cheaper premiums.
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Narrow down the possible insurance companies to those with the best rates. Consider buying a policy directly over the phone from insurance providers, if they offer lower rates. Visit or call prospective insurance company's agents, salesmen or brokers for policy, customer service and claims process details before you decide where to spend your money. Ask for premium reductions due to age, or for the length of time you've been with the company if you have other policies with them.
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Consolidate home or health policies with your car insurance for lower rates. Use one company if you have spread out your policies. See if you can get a discount for multiple car policies, if you own more than one car. Add family members to your current policy instead of buying separate insurance. Keep your mileage low and drive only when necessary, as rates will increase for a high-mileage car. Make yearly payments, or every six months, to save money.
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Tips & Warnings
Use a calculator to figure out exactly how much coverage you will get at a particular cost.
Never drink and drive, as your rates will skyrocket after a drunk driving conviction.
References
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