How to Get Car Insurance Cheap

For many American drivers, obtaining cheap car insurance involves skimping on coverage - in our quest to save a few dollars, we skip important coverages and choose high deductibles. Unfortunately, the money you save now could end up costing you a bundle in the long run.

There are ways you can save on your auto insurance without exposing yourself to financial disaster, though. Here are several techniques you can use to get car insurance cheap, while still being adequately protected:

• Shop for insurance quotes before you buy your vehicle. Insurance companies use complex formulas to determine how much you'll pay based in part on the type of car you buy. Your state's Insurance Departmentcan give you those formulas, but unless you have a degree in actuarial science, the information probably won't mean much to you. So let common sense be your guide when you're shopping for that new car - a Corvette might look great, but it will cost a lot more to insure than an Optima or an Accord. As a rule of thumb, the more expensive and/or powerful a car is, the more you'll pay to insure it.
• Think about signing up for a defensive driving course. Many insurance companies will give you a discount on your car insurance if you take a voluntary defensive driving course - sometimes as much as 10%. It's not the most exciting way to spend a Saturday afternoon, but once you're through the course, you can get the discount for 3 years or more. Most companies won't offer this discount if you were forced to take the course (because of a driving offense, such as a DUI) or if you take the course to get points taken off your driving record.
• Drive as carefully as your grandmother. Violations and accidents can make your insurance premiums skyrocket - just one at-fault accident can cause your rates to nearly double! Insurance companies typically use "tiers" to determine how much you'll pay for your policy - the cost varies considerably among those tiers. If you want to get into the top tier (and get the best price), you'll typically have to have a spotless record - even one speeding ticket can keep you from getting the best rate.
• Buy all of your insurance through the same company. You can get a discount if you insure your home, boat, or motorcycle with the same insurer that covers your car - often as much as 15%!

Getting car insurance cheap involves planning (and forgoing that new Corvette), but the money you'll save over the long run will be well worth it.