When you’re looking for ways to save and trim your budget, you want to explore every possible option to save money. If you have ever owned a car, you know that there are many expenses that go into car ownership.
After the initial purchase, there is a lot that you will have to pay afterward. Among these are oil changes, general upkeep, and gas. However, the most important, and arguably most expensive, is the monthly car insurance that you must pay to be able to drive your car.
This is something that every car owner must do so it can easily feel like you will always be stuck paying too much for car insurance. However, there are some ways to lessen this blow and get an affordable car insurance rate. Here are some tips to help you find the cheapest car insurance rates in your area so you can lower this monthly bill.
1. Understand What Auto Insurance Covers
Before you even start looking at the cheapest options, you have to figure out the right plan for you. Do some research when comparing companies to see what each insurance policy covers.
There’s liability coverage which is cheaper but only covers bodily injury and property damage that you may cause to someone else in the event of an accident.
Full coverage is more comprehensive and may even cover costs like roadside assistance and towing if your car happens to break down unexpectedly.
You’ll also want to look at deductibles which is the amount you’d be expected to pay before insurance kicks in, as well as total coverage limits.
2. Shop Around Online
Thanks to the internet, you can get quotes online for auto insurance in just a few minutes. You can go directly to each company’s website and request a quote. Although, that will result in you receiving a ton of follow up calls.
As an alternative, you can go to sites like Insurify and The Zebra to compare quotes side-by-side from different companies.
Some insurers require a huge lump sum up-front on top of the monthly payments. This could be problematic for some people’s income levels. With a large sum due upfront, it can be easy to fall into a hole of constantly trying to dig up change to pay your bill.
3. No Deposit Auto-Insurance
Luckily for car owners on a budget, there are some auto insurance companies that only require the first month’s premium to be able to start being insured. This way, you are able to pay for insurance with the company as long as you want. Typically, they offer monthly, quarterly, semi-annual, and annual payment plans.
This allows you to spread out the payment over a longer period of time, rather than trying to find a huge sum of money all at once. Sometimes, you only need to be insured for a short amount of time that you have a car.
In these situations, you do not want to be trapped in a premium if you only use your car for family vacations during the summer. Therefore, these plans can help to save some money on usually expensive car insurance policies.
4. Keep a Good Credit Score
It’s no secret that some companies look into your credit when considering you for an auto insurance policy. This is yet another reason why it helps to keep a good credit score so you can save money.
Focus on paying off high-interest debt, pay your bills on time, and stop using credit cards that you can’t keep up with in terms of payments. Over time your credit score will increase and you’ll be able to enjoy some of the benefits that come with having good credit.
Companies That Offer No Deposit Insurance
While there are only a few prominent U.S. insurance companies that do not require a deposit, there are many that are not as well known. Besides GEICO and Progressive, you may want to do your research on the company to make sure that they are a reputable source to insure your vehicle.
While it is rare that you will be ripped off by some person claiming to be an insurance company, you should be on the lookout. For instance, standards for claim filing that seem too complicated, or just seem off, can be red flags.
The good news is that you can also get a free quote online with most insurance providers. This allows you to compare the rates from the comfort of your own home.
Where To Start
If you want to lower your monthly car insurance bill, I suggest you start by determining what level of coverage you need. If you are leasing your car or paying a car note, you may be required to get full coverage.
Shop around online to compare quotes and consider using some of these other savings strategies to help keep costs low.
