The Battle for Cheap Auto Insurance Rates

Life can get quite expensive and often these expenses cannot be avoided. However, there are expenses in life that can be eliminated or minimized in order to put more money in a person’s wallet. Auto insurance is a necessary evil in life as almost every state in the U.S. requires individuals to have insurance coverage in order to register a vehicle. Cheap auto insurance rates can be found with a little bit of diligence and patience in researching different coverage options.

The first thing to understand in searching for cheap auto insurance rates is that some factors are always going to be outside of your control. Insurance rates can vary wildly depending on what state you live in. The average American pays an annual insurance premium of $1,429.26, but the average premium can be much different depending upon where you live. Drivers in Maine pay the lowest premium among American drivers with an average premium of $902.85 while drivers in Louisiana pay the highest premiums with an average cost of $2,510.87 per year. Many of the factors that result in these numbers being high or low cannot be changed by individual drivers. In Louisiana for example, the legal costs associated with insurance are very high and that cost is passed along to insured individuals. Maine on the other hand has a small population, meaning fewer people on the roads, which means fewer claims.

Individuals looking for cheap auto insurance rates need to find out what kind of coverage is required in their state and then figure out what level of coverage is required by the lien holder of their vehicle, if they have one. Most loan paperwork for vehicle purchases includes language outlining the amount of insurance the individual must keep on the vehicle. Many banks, credit unions, and other lenders require individuals to carry collision and/or comprehensive coverage.

Those looking for cheap auto insurance rates also need to determine what kind of extra coverage’s they want or need. Extras such as roadside assistance, towing, and car rental assistance are nice benefits but will result in higher premium payments.

Who you are and how you drive will also affect your ability to find cheap auto insurance rates. Insuring teenage drivers is going to be expensive, but there are discounts for teens who can keep a clean driving record year after year and some companies even offer “good student” discounts for teenagers who keep good grades in school. Single people should be prepared to pay a higher premium than married people because most insurance companies assume that a married individual, possibly with kids in the car, will drive less aggressively than a single person.

There are actions individuals can take to try and boost their ability to find cheaper auto insurance rates. First off, consult with your current insurance company about bundling services with them. Many companies offer discounts to individuals who have two or more insurance policies with them, such as homeowner’s and auto insurance or renters and auto insurance. Some individuals may qualify for corporate discounts on auto insurance through their employer; contact your HR department to see if your company offers these services and whether or not you qualify. For those who have some extra money, consider raising your deductible. Having a higher deductible will result in a lower monthly premium, and don’t worry about having that money available immediately. With the money you save each month, put some aside in an interest bearing bank account so you have the deductible amount set aside in case it is needed.

The most important action an individual can take to help them find cheap auto insurance rates is safe driving. Be smart when you get behind the wheel and also responsible by obeying speed limit laws, wearing a seatbelt, and avoiding drunk driving situations. Keeping a clean driving record can be very helpful in keeping auto insurance rates low.