How to Get the Cheapest Auto Insurance Rates

The key to getting the cheapest auto insurance rates possible is to know your coverage options and your car insurance needs.

Before you call insurance companies or get a quote online, there are a few things of which you should be aware. This way, when you start the process you will know what to do in order to get the cheapest auto insurance rates possible. Also, be sure to do an Internet search for car insurance within your state, because different states have different requirements regarding the minimum car insurance you can have.

The first thing you should decide on is the level of coverage you want based on how much coverage you think you need. A policy that gives you a maximum of $50,000 is cheaper than a maximum $300,000 policy, so if you think it is unlikely you will be involved in a traffic accident with costs exceeding $50,000, then you can consider taking the cheaper option.

One of the easiest ways to cut car insurance costs is to know what car insurance companies mean when they give you a quote for full coverage. Whenever you call or get a quote online, the initial dollar amount you receive is always for full coverage. Naturally, car insurance companies want your money, so they do not always tell you up front where you can reduce your overall costs. Plus, the term “full coverage” sounds like something you want in order to protect yourself and your car, but there may be some corners you can cut.

Full coverage typically provides the following coverage:

Bodily injury liability – protection if you cause an accident that injures or kills someone. This also provides coverage if another person involved in the accident files a lawsuit against you. This coverage only deals with injury to people.

Personal injury protection – pays for medical expenses if the driver or passenger(s) in your car who are injured in an accident. This may also cover your injuries if you are hit by a car as a pedestrian.

Uninsured/underinsured motorist coverage – pays for your injuries if an uninsured or underinsured driver hits you. This may also cover damage to your vehicle in some states.

Comprehensive coverage – covers incidents other than collision, such as your car getting stolen or damaged by uncontrolled elements, such as fire.

Collision coverage – covers damage to your car when you hit someone else or someone hits you.

Property damage liability – covers you if you damage someone’s property while driving.

Rental reimbursement – pays for a rental vehicle (up to a certain amount) when your car is unavailable due to an accident.

Roadside assistance – covers towing expenses if your car breaks down and offers assistance for things like your battery dying or locking your keys in the car.

All of these coverage areas can be flexible and tailored so you get the exact coverage you want. Remember to always uphold the laws of your state, so coverage like uninsured/underinsured may be required. Furthermore, your basic coverage, such as bodily injury and collision coverage, are items that you will probably want if you do get in an accident. However, to get a low premium, select as large a deductible as you could reasonably pay. Because the car insurance company would not have to pay as much in the event of an accident, they are able to lower your premium accordingly.

Two aspects of full coverage that can easily be taken away, depending on your situation, is rental coverage and roadside assistance. If you are too young to rent a car or if you have some other means of using a car if your primary vehicle is out of commission (such as sharing your spouse’s car), you will not likely need rental coverage. In addition, if you are a member of a service like AAA, you will not need roadside assistance through your car insurance, because you already have that covered through your AAA membership.

When tailoring your car insurance, it is typically best to talk to a representative. That way, you can tell them exactly what you do and do not want, and they can give you an accurate quote. By being informed and making decisions about your insurance, it does not take too much effort to get the cheapest auto insurance rates possible.