Car insurance is a necessity, so you can't avoid buying it. However, you can sometimes control the price you pay so your payments are more affordable. Cheap car insurance usually means you'll have less coverage, so you want to find a balance between cost and protection for your car. Here are some tips for buying inexpensive car insurance.
Buy Your State's Minimum Insurance
Ask your agent about the minimum amount of insurance you need. This is decided by the state you live in. This ensures you have the amount of insurance that's legally required, but you won't have more than you need and spend more than necessary. Just make sure the amount is compatible with the type of car you have. If you have a new or expensive car, it could be risky to buy minimum insurance, so discuss the matter with your insurance agent.
Take A High Deductible
The deductible is the money you pay out of pocket before your insurance kicks in. The higher your deductible, the cheaper your insurance will be. Taking a high deductible might be risky, because you'll have to pay a lot more to fix your car if you're ever in an accident, but your payments will be lower. If you're a safe driver, you might feel comfortable driving with high-deductible insurance.
Shop Around For The Best Price
You may want to compare insurance costs from different providers. The cost of car insurance is often similar among companies, but you may find a better deal with one company over the other, especially if you can bundle your car insurance with homeowners and other types of insurance.
Consider Trading Cars
If it's essential that you have cheap car insurance, then you may need to trade your car. Sports cars and new cars usually have higher insurance rates. You may need to trade your car and drive an older used car temporarily until your finances improve and you can buy insurance that costs more. Car insurance rates also vary according to the state you live in. Insurance can be a lot more costly in certain states, so if you're between jobs and able to move, you might even consider moving to a state that has cheaper car insurance so you can keep driving your current car while you hunt for a new job.
Ask About Discounts
Talk to an insurance agency such as Clover Insurance about ways to get discounts on your insurance rate so you can bring down the cost. You might get a reduction for safe driving, taking a defensive driving course, or having equipment on your car that prevents theft or makes your car safer to drive.