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How to Buy Cheap Car Insurance

Updated on September 28, 2012

It has been known that most states require you to purchase car insurance coverage before you can register your vehicle. Car insurance coverage is an approach to protect vehicle owners and drivers against losses due to car theft or when you get involved in an accident. When searching for car insurance, vehicle owners and drivers look where they can buy cheap car insurance coverage.

On the contrary, car insurance providers can offer car insurance coverage at very affordable rates. If you want to buy cheap car insurance, you need to consider some factors that affect the cost of car insurance premium. Here are some tips how you can save money and buy cheap car insurance.

1. Clean Driving Record

Car insurance providers determine their car insurance premium based on statistics. Vehicle owners and drivers with clean driving record and fewer traffic violation tickets are more likely to receive more discounts on car insurance premium. Hence, if you drive safely, you will have less possibility of getting involved in an accident. It shows that you are concerned about your safety and vehicle condition.

2. Vehicle Safety Features

Vehicle owners and drivers have higher probability that they can buy cheap car insurance when they are insuring a new vehicle because car insurance providers will be paying less for its maintenance and repair. Similarly, it is also expected that you can buy cheap car insurance coverage if your car has anti-car theft and safety features.

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3. Military Service

If you are on active duty, retired military personnel, or a member of the National Guard or Reserves, you can get special discounts and buy cheap car insurance. Most car insurance companies offer special discounts to military personnel and their families. They move from city to city or state to state very frequently because of their deployment and they will be charged higher car insurance premium if there is no special provision.

4. Higher Deductible

Paying for a higher deductible is one of the main techniques if you want to buy cheap car insurance. However, a higher deductible means that you will be taking a large amount of money from your pocket. It may also mean that you will be paying for the repair of your vehicle should you get involved in an accident. Hence, you should look for a deductible that will not create a hole on your pocket and strain your budget. If you do not drive often, you can opt for the minimum coverage required by your state, but make sure that you have an emergency savings account for the maintenance and repair of your vehicle.

5. Credit Score

If you missed two payments on your credit card, you will be paying for more expensive car insurance premium. Studies show that a vehicle owner with bad credit score is charged 20% to 50% higher on car insurance premium as compared to a vehicle owner with good or satisfactory credit rating. In short, you need to keep a good credit score so that you can buy cheap car insurance.

Summary

It should be kept in mind that you can save money on car insurance premium without sacrificing your security. Vehicle owners and drivers are highly recommended to buy cheap car insurance coverage by combining two or more factors that were discussed above. More importantly, it is necessary that you do sufficient research how and where you can buy cheap car insurance.

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    • CrazedNovelist profile image

      A.E. Williams 4 years ago from Hampton, GA

      Short and sweet, yet informative. Very nice.

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      Eileen 4 years ago

      Insuring your car is not only a legal compulsion but also a smart financial decision. Car insurance companies understand the different needs of different vehicle owners. That’s why they provide them different car insurance plans according to their needs. The price of car insurance depends on various factors like type of car insurance policies, your age, driving record etc. For more information on saving money on car insurance, you can visit http://blog.quoteme.ie/2012/05/the-best-ways-of-ge...

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      Casey 5 years ago

      Thanks for a very useful post. You're absolutely correct that it is ALWAYS necessary to do sufficient research any time you make a decision about something like car insurance. Here's something that you and your NJ/PA drivers may be interested in knowing: CURE auto insurance doesn't use credit score in determining your rate, so costs are even lower. They're actually a not-for-profit company that doesn't try to rip people off. You should check out their site for a quote (can't hurt, right?).