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How to Get the Cheapest Car Insurance

Updated on July 17, 2014

Quality car insurance is available for all licensed drivers. It can be found on online, in a shopping mall, or on Main Street from your neighborhood agent. Finding cheap car insurance is more challenging. A perfect insurance fit for some drivers is a bad deal for others. Today, it is possible after performing simple but thorough research to have confidence that you have paid the lowest possible price for the car insurance that is right for your circumstance.

High performance cars, extremely expensive cars and cars that are popular with car thieves will cost more to insure that humdrum economy cars. Drivers that have been involved more than one accident in the past 3 to 5 years or have had as many driving citations will pay higher premiums than drivers with no accidents or citations. It takes years to become a very good driver with an accident free record. Newly licensed drivers normally receive an accident free discount, but the insurance premiums for inexperienced drivers are so high that the accident free discount does little to make the insurance more affordable.

Some communities tend to have more car accidents, and those communities will inevitably have higher auto insurance rates than communities with lower accident rates. Almost every state requires minimum liability coverage that will pay the cost of injury or damage that is caused by a driver. Proof of insurance is usually required to get a driver’s license.

Liability is the Lowest Priced Minimum Acceptable Coverage

For drivers struggling to afford insurance or drivers who are less concerned about personal or property risk, the legally required minimum is liability insurance. Liability will cover property damage and injury to other vehicles and persons, but will not pay damages to the insured. The lowest liability premiums would be on the smallest cars that have the least likelihood of causing serious damage. Many people drive older cars with very little value because they are unwilling or unable to pay for collision insurance that would repair or replace the car in the event of an accident.

Uninsured Motorist

To protect against damages caused by uninsured motorists, hit and run drivers, or drivers without enough insurance, minimum liability with uninsured motorist coverage is highly recommended by insurance professionals. Uninsured motorist coverage will also cover injuries to the payer if the payer is hit by an uninsured motorist as a pedestrian. Uninsured or under-insured motorist adds very little to the cost of a minimum liability policy.

Personal Injury Protection

Personal Injury Protection or PIP coverage pays the medical costs of injury to the insured driver and passengers of the insured driver vehicle which would not be covered by minimum liability. PIP will also cover housekeeping expense, lost wages and services that would normally be performed by the injured person.

Collision Coverage

Collision coverage is the most expensive type of car insurance. Collision covers damages caused by collisions with other vehicles or objects. It is the most common type of property damage and costs the most money. High value cars have collision coverage, and cars that are financed must have collision coverage per the requirement of the loan company.

Comprehensive Coverage

Comprehensive coverage pays for damages and loss caused by theft, fire, wind and hail.

Rental Reimbursement Coverage

Rental reimbursement coverage reimburses the policy holder or driver the cost of a rental car while the damaged car is being repaired.

How to Get the Lowest Rates

Internet access has forced providers to become more competitive by giving consumers access to price and coverage information. Laws have been enacted to require every driver to have car insurance. Because more people have insurance, the risk is more evenly spread which reduces the cost of insurance. Today’s auto insurance rates are lower than they have ever been. Insurance rates just seem higher because damages are so much more expensive these days. It is easy to get multiple quotes in a very short amount of time using the internet. It is also important that the quote covers the same type of coverage to be sure that costs are accurately compared.

Insurance rates change frequently and are very different from one company to another for different types of coverage even though the coverage is the same. One company may have the best price for newly licensed drivers, while another will offer the best deal on collision coverage.

As newly licensed drivers gain experience, there are cost-saving advantages to re-evaluating insurance prices and benefits. Many drivers save money by combining auto insurance with renters or homeowner’s insurance. Raising the deductible which is the amount the policy holder pays before the insurance company pays any damages will result in lower premiums with any company.

Before making a final decision on any insurance provider, carefully review for deserved discounts for accident free driving, completion of a safe driving class or installing anti-theft devices on the car have been factored into every insurance quote.

Cheap Insurance Checklist

  • Shop for a car with insurance cost awareness before buying.
  • Consider a low value vehicle that does not require high cost collision coverage.
  • Know the kinds of coverage that you want beforehand, and be clear and consistent on quote requests.
  • Get multiple quotes.
  • Compare quotes with neighborhood agent.
  • Drive defensively and carefully to avoid accidents and moving violations.
  • Evaluate savings with higher deductible amounts.
  • Get updated quotes before renewal time which is every 6 months.
  • Look for discounts such as: good driver, good student, 2nd car, and auto and home bundle. Check carefully to make sure all discounts are included in any quotes.

Every layer of coverage will add additional cost with the additional protection. As more layers of coverage are added, the cost for each type of coverage is reduced, even though the entire policy will cost more. More coverage will translate to more protection for every dollar spent.

Experienced drivers will agree that the true value of car insurance is never appreciated until it is needed. Every kind of insurance is available 24 hours per day, 7 days per week from online providers. However, online insurance providers are not nearby when the accident happens, or when the claims adjuster doesn't seem to care that you have experienced a traumatic car accident.

After carefully researching and locating the lowest cost insurance, make sure you actually feel protected by visiting your neighborhood agent who will kindly explain the findings.


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    • Anne Pettit profile image

      Anne Pettit 3 years ago from North Carolina

      Thanks for the feedback!

    • teaches12345 profile image

      Dianna Mendez 3 years ago

      You have given me more information to get me a better deal next time I look for insurance. Seems like we have to do this each time our policy comes up for renewal. Thanks for the list.