Getting Dirt Cheap Auto Insurance - A Guide for the Confused

We all want to save money, and getting dirt cheap auto insurance is a great way to wind up with some extra money in your pocket every month. The big question is where the heck to start! Navigating the insurance minefield is confusing at best. Everyone’s insurance needs are different; your requirements will be determined by the state you live in, the type of car you drive, and your financial situation.

The first step towards saving money on your auto insurance is to analyze all of your options. The bare minimum coverage you can carry on your vehicle is determined by the laws of the state where you live. This minimum level of coverage (usually some amount of liability insurance, which covers damage to property and medical expenses for the other party when you are at fault in an accident) is usually affordable; however, carrying only the bare minimum does increase your risk of a lawsuit if you cause an accident. Other types of coverage, such as collision insurance, can often be eliminated- especially if you drive an old car. If your car is fairly new, you’d be wise to carry collision coverage, since it covers repairs to your car regardless of who caused the accident. However, you can decrease your collision premiums by opting for a higher deductible. If you have separate medical insurance, it may be wise to eliminate personal medical protection from your auto insurance plan.

Of course, the number one factor in obtaining cheap insurance is to keep your driving record squeaky clean. This means no speeding tickets or other moving violations, no accidents, and absolutely no drinking and driving. A single DWI conviction may cause you to lose your auto insurance altogether; if you are able to retain your coverage, your premiums may triple. You’ll pay the inflated premiums until the DWI fades from your record, which means you’ll be in the hole for up to ten years.

There are several other premium-lowering avenues to be explored. Students should keep their grades high; many major insurance companies provide “good student discounts”. College graduates and holders of advanced degrees are often offered lower rates than customers with lower levels of education; clients with high credit scores are also often given better deals. Some insurance companies will lower your rates slightly if you agree to pay your premiums annual or semi-annually, rather than monthly. There are also discounts available for members of certain professions, such as law enforcement. Placing an anti-theft device in your car can also lower your premiums; most new cars come equipped with them, or they can be purchased at electronics retailers nationwide. Companies in some states even provide discounts for window sketching. It may even be possible to get a small discount if you pay your insurance bill through automatic deductions from your bank account!

Dirt cheap car insurance is within reach; you simply to do your research and be patient, patient, patient. Don’t accept the first offer you receive; get quotes from as many companies as you can. Many websites allow you to submit your information once and receive a variety of quotes from different companies. Take advantage of the free tools available to you on the Internet; it will take some time, but affordable car insurance is possible! Go get ‘em!