Auto insurance is required in most states in the US. The reason for this is that driving can be very expensive in the event of an accident, so companies decided to charge premiums that cover an annual driver fee for be covered if something bad were to happen. However, the cost of having car insurance continues to rise and with premiums so expensive, we wonder if there is ever a way to get low cost car insurance.
The cost of car insurance can depend on many things. The thing is, with every car insurance company announcing its lowest rates, it’s hard for Americans to see the differences between them. Phrases like “GEICO can save you a lot of money on your car insurance” or “with Progressive you can see the rates of all the other companies, and you will choose us” have come to mind, and the simple truth is that the public cannot decide what cheap car insurance is for them.
As said before, car insurance has different factors to be cheap. One is the type of coverage you have. You can buy basic coverage (for most states it’s Bodily Injury and Property Liability), comprehensive coverage (which includes everything from paying for damage to your vehicle and sometimes even giving you a rental car so you can keep driving after an accident) or somewhere in between.
Most Americans tend to buy their cars on credit from car dealers. If you have a vehicle that is still making monthly payments, it’s important to know that you will most likely need to have comprehensive coverage (in case of an accident). For those people who already have their cars paid for, they can opt for any coverage they want, which would make it less expensive.
Another factor in car insurance is the year, make and model of the vehicle. SUVs have a better safety rating than sports cars, and for this reason, SUV insurance would be less expensive. However, SUVs like the Cadillac Escalade are stolen more often than any other vehicle and this could drive the price up a bit. If you have a compact family car, minivan, or pickup truck, expect to pay less money on auto insurance than those with luxury cars, good-looking SUVs, and fast sports cars.
There are many ways to find the low cost car insurance you need. Before you even think about getting auto insurance, you need to do your homework first. This requires finding out your state’s car insurance requirements, including the types of coverage required and whether your state is a “no-fault” state. You can also write your car insurance profile specifying what type of car you have, who else will be on your policy, where you drive, what your driving record is, and what optional safety features your car has.
