5 Tips to Find Budget-Friendly Car Insurance

If you own, lease or are paying off a car of your own, having auto insurance coverage is non-negotiable. However, overpaying for auto coverage is common, especially when insurance companies try to offer their more expensive plans over their budget-friendly policies to customers looking for ideal coverage.

Fortunately, it’s possible to get dependable car insurance while money is a little tight. Read on to discover how to find the best option for you and your car without stretching your budget too thin.

1. Compare Quotes

The only way to know if you’re truly getting cheap car insurance is to shop around and compare rates between multiple companies. There are a number of websites that allow you to compare basic insurance quotes between insurers. 

In addition to getting quotes from larger companies, make sure to reach out to smaller companies that might have a better deal than well-known companies. 

2. Assess Personal Factors

The total cost of auto insurance coverage doesn’t just depend on market competition. Insurance companies determine coverage premiums on a variety of factors, including:

• your driving record, 
• your area, 
• the age and model of your car, 
• your age, 
• your marital status,
• and your driving habits.

In some instances, insurance companies also consider your credit history when determining your premium, too. Insurers come up with quotes after considering these factors in order to assess how big of a risk you may be when it comes to any future claims and financial liability. 

3. Consider Your Deductible

If a lower monthly payment is your ideal, you may be able to negotiate your deductible in favor of reduced premiums. To determine whether this would suit your financial situation, it’s a good idea to think about what you may be able to afford should you have to make a claim in the future. 

Your deductible is the amount you will have to pay out of your own pocket in the event of an accident or auto hazard. While you may save each month on auto coverage with a higher deductible, it could cost you down the road if it’s unreasonably high for your current budget and savings.

4. Look at Liability Limits

Though it’s important to ensure your coverage meets your state’s minimum liability requirements as ordered by law, you can opt to reduce your liability coverage in an effort to save money on your premiums. The more bodily injury liability, uninsured motorist liability and property damage liability coverage you include in your policy, the higher your overall costs will be. 

As with an increased deductible, it’s wise to assess whether reducing liability coverage is a sound decision made with your future in mind. Make sure your insurance coverage will protect your existing assets in the event of an accident in which you’re at fault, or you could wind up paying a lot more out of pocket.

5. Explore Discount Options

Many insurance companies want to reward good driving behavior, responsible citizenship and other specialized groups with coverage discounts. To see if you’re eligible for any incentives, look into what discounts are available with each insurer. 

Companies provide reduced rates for those who have served in the military, drivers with excellent records, those with vehicles that have additional safety features, full-time students with exceptional grades and drivers who insure more than one vehicle on the same policy. Not all insurers provide these discounts, but it’s worth looking into with each company to make sure you’re getting the best deal for your plan.