Many people these days are searching for inexpensive car insurance policies because they want to make sure that they can afford the cost of their premiums. Most insurance companies make a healthy profit from their customers and the auto insurance industry is no different than others; they are out to make money. Some companies offer lower rates than others and are able to provide relatively inexpensive coverage, but it is important to understand that just because the cost of coverage is cheap does not mean that the auto insurance company is reliable, trustworthy, and has good customer support. The saying “you get what you pay for” applies to the car insurance industry in most cases.
What is Inexpensive Car Insurance?
Inexpensive car insurance is best defined as auto insurance that is offered at a rate that is perceived as being a low price by the buyer. If you are out to save the most money possible with your insurance coverage, then this is probably the exact type of coverage that you are looking for. People that want to get a very cheap auto insurer for their vehicle will be able to do so, provided that they do their research. Individuals that take the time to research a wide variety of companies are going to be able to find one that is offering a lower quote than the rest. Although some people are not looking for cheap auto insurance prices and want more comprehensive car insurance policies, many people these days are looking to save. In recent years especially with the economic crisis across the United States, people want to cut back on expenses and maximize savings; people do not have as much money to spend these days as they did in the past.
Of course it is important to understand that what one person may perceive as being inexpensive car insurance may be perceived by another as being expensive car insurance. A lot of people do not talk to other people and ask how much they are paying for auto insurance. Let’s face it, most people do not bring up the cost of auto insurance in conversations with others like friends, neighbors, and other family members. The truth is that most people do not know where they stand in comparison to other people that are buying insurance. So even though you may think that you are getting inexpensive coverage, you may be paying more than other people. Of course there are always going to be other factors that play into determining whether the coverage is inexpensive.
Risk Factors Determine Whether Auto Insurance is Expensive
For one person, paying more money may actually be inexpensive based on their risk factors. For example, if a person has gotten into trouble with the law and has been arrested for traffic violations on several occasions, and has been involved in several accidents within the past year, this person is going to be evaluated as having a much higher risk than average. Even though this person may be paying more than most for his or her insurance, the increased cost is justified based on his or her overall risk as calculated by insurance professionals.
Some companies may be offering this person coverage for $2000 per year, while one company may be offering a rate of $1300 dollars for the full year. The rate of $1300 would be considered much less expensive for this individual than average. Even though most of this person’s friends may be paying around $850 for the year, this person is paying a much higher cost due to being assessed as a very risky person to insure by the insurance companies. An inexpensive price for him or her may actually be the rate of $1300. It is important to understand that there are different situational factors that should be taken into account when judging what is “expensive” and “inexpensive.”
Individual Cost will Always Differ Due to Risk Factors
Since every person is unique, nearly every car insurance cost will be different from the next person. There may be two people with histories of zero traffic violations, let’s say that both people never got a ticket, are the same age, both are receiving a student driver discount, and both are males. Just because they have all of the same general risk factors, one person may still be paying more for insurance due to the fact that he may have a more expensive car than the other guy. The overall value of your car is going to have an influence on how much your insurance companies will charge for premiums.
People that are getting used car insurance will likely pay less than someone who needs insurance for a brand new vehicle. The type of car (e.g. sports car, import car, custom car, etc.) is going to be related to the price that people are expected to pay for insurance. Other factors like age, security features installed on the vehicle, whether the car is stored inside a garage or parked on the street, and whether there is a significant risk of having the car stolen are all going to be taken into account by virtually all insurance companies.
Where do you live? Something as simple as being in a state where car insurance is cheaper will play a role in determining whether you are able to get inexpensive car insurance. For example, if you live in the state of New York, you will be expected to pay much more than someone living in Minnesota. Places where traffic is busy like New York City are going to have much higher rates on their insurance policies because of the fact that there is a much greater chance of getting into an accident. When traffic is more spread out and there are less cars on the road, people are going to have less of a chance at getting into an accident with one another; for this reason, insurance prices will be lowered.
Getting Inexpensive Car Insurance Quotes
As I already mentioned, you need to make sure that you understand your situational risk factors that insurance companies judge before you can know what is “inexpensive.” Some people fail to understand that some people are going to have lower insurance prices because they drive around a vehicle that is inexpensive to insure, they have not had a traffic violation, and they are experienced on the road. Other people think that they should be able to get cheap first time car insurance prices when the truth is that young drivers are not going to usually get rates that are considered to be “cheap.”
What you can do if you want to make sure that you are taking advantage of the best priced quotes is to search for auto insurance companies online and fill out free quotes on their websites. I recommend that you get a pen and paper around and request a quote from as many different companies as you can; make sure that they are companies that you trust through – don’t just go with some random fake auto insurance company or scamming website that is disguised as a legitimate car insurance site. After you have gotten as many quotes as you could, you will want to compare them to see which companies gave you the lowest price estimates.
Inexpensive Car Insurance Companies
After you have figured out which companies gave you the best prices on quotes, you will want to make sure that you find a company that is reliable to purchase your insurance through. Many people do not realize that just because a certain company is offering a low quote does not necessarily mean that they will be the best option for insurance. Some companies charge a little bit more money, but provide their customers with exceptional customer service and more overall coverage. It is up to you to figure out what is a good company to work with for your personal driving situation.
The best way to get a feel for what a company has to offer is to give them a call or meet with an agent. By finding a way to contact them in some way, you will be able to get all of your questions answered and get a better overall feel for the company and the services that they provide. It would be a good idea to contact several companies that you are considering and then compare their service, and figure out which one has the best policy to offer for you. Everybody has different needs and concerns when it comes to insurance, so a company that may be a perfect fit for your neighbor may not be a perfect fit for you.
You will also want to read company reviews on the internet to make sure that the companies offering low rates have gotten positive customer feedback. One way to look at whether a car insurance company is reliable is to take a look at how many years they’ve been around; if they’ve been established for awhile, it is probably easier to say that they provide pretty good services. Take the time to read consumer reports and figure out what the best insurer to go with would be; stay away from companies that do not look legitimate.
Will Brokers Help Me Find Inexpensive Auto Insurance?
The best car insurance brokers aim to help their clients save as much as possible on their auto insurance, while still finding them a policy that provides them with quality coverage. The nice thing about brokers is that they make things easier for you because they dig around to find the best policy for you. They will likely ask you about yourself, what type of policy you are looking for, the type of vehicle that you drive, and then take into account other personal factors so that they can round up some quotes. Then they will compare prices from a bunch of companies that are considered to be reliable and find the best overall auto insurance deal.
The only downside associated with getting a broker is that you will need to compensate them for their services. Different brokers charge different prices for helping find you the deal that you need on your insurance. Decide whether it is worth it for you to go with a broker and if it is, start looking in your area for one that you know can be trusted. Realize though, that you don’t need a broker to find the best rate on your auto insurance, you can still find just as good of deals (if not better) by looking on your own.
Ways to Get the Most Inexpensive Car Insurance
If you really want to save on your insurance policy, you can start by deciding to drive a vehicle that is a low cost to insure; you can look up what types of cars are least expensive to insure on the internet. Additionally, you will want to ask your insurance provider about all of the ways that you can further save on your policy. They may suggest installing advanced security features like an alarm system as well as keeping the interior of your car the way that it is; in other words, don’t make more expensive modifications if you want to keep the price of your insurance low.
Never forget to ask about discounts that will be offered before you sign up for a policy. Some places may give you a quote, but won’t factor in the discounts until after you have actually purchased a policy. People that aren’t willing to take steps to get discounts by driving safe on the roads, minimizing traffic violations, and installing proper security features are not going to get the most inexpensive car insurance available. Be sure to work with your insurer to make sure that you are getting the lowest possible rate for your policy so that you are not paying out extra money that you could be saving.
Assess Your Auto Insurance Needs
The most important aspect of car insurance is to know what type of policy that you need before you make a purchase. People with older cars are not going to likely need an expensive, comprehensive car insurance policy because the damages to their vehicle in the event of an accident would not be worth the extra expenses that their insurance costs. You need to know what type of insurance you are legally required to have as well as what policy makes you feel most comfortable on the road. By law, most people are required to have at least third party car insurance liability coverage for protection in case someone files a lawsuit in the event of an accident. Many people opt for third party fire and theft insurance as well, but it really all depends on what you feel is best for you.
Just because your neighbor has comprehensive auto insurance for his brand new Mustang does not mean that you need the same policy as him for your 1990 Oldsmobile; you can likely get away with taking a higher deductible and will have lower premiums than he will. There are many factors that go into determining what type of auto insurance to get. The whole key is to choose a company from the beginning that you are satisfied with and that you can rely on to keep your insurance policy in-tact if you were to ever need to file a car insurance claim.
Review Your Existing Auto Insurance Policy
To make sure that you are getting inexpensive car insurance, it is a good idea to review your policy each year and make sure that there are not better options through other companies. Many times people stick with their existing policy for such a long time that they do not even think to check other places for good deals. Although your current policy may be the best deal for you, it is still a good idea to check other places to see if they have a better rate to offer and/or more savings.
Nobody knows what type of car insurance policy is best for your situation better than you. Of course you can always ask experts for help by contacting an insurance agent or broker. If you are considering doing business with a certain company, they will likely tell you what they recommend you get for coverage. Hopefully, after thinking about what you read in this article, you will be able to go out and get an auto insurance policy that you are happy with both in terms of price as well as coverage.