Every state requires that you carry and maintain insurance on your car if you drive it. Depending on the insurance riders, your insurance can vary by several hundred dollars per year. Also, you can expect that certain insurance companies will cost more, but if you shop around, you should be able to locate the cheapest car insurance quote.
The first place you should look for car insurance is with a company that you already have a relationship with. They often give you discounted rates if you already have an existing home owner’s policy. Often this is the best place since sometimes you want to carry an umbrella policy to protect your home and other assets if you are found liable in automobile accident. However, you must carry 100/300 coverage which may put you out of the cheap insurance category.
States have a minimum coverage that you must carry so that it will cover a loss that is typically for the area in which you drive. This coverage is usually 15/30 and you should get the minimum for the cheapest rate possible. You can increase this over time as your assets grow or have a newer or more expensive car you want to insure.
The second way to get reduced insurance rates is to lower the number of miles you annually drive your car. If you drive your car under 7,500 miles per year, tell your insurance agent so he can give you a lower quote. Otherwise, you’re going to pay the national average quote of 15,000 miles driven or more per year.
Keeping a clean driving record is always a sure bet in lowering your insurance cost. Moving violations or accidents on your record will increase the rate you pay. Fortunately, you can have tickets removed from your record if you attend traffic school; however, accidents stay on your record for 3 to 5 years depending on the company. Try to avoid both for the best possible quote.
The third way to lower your rate is to shop around. This is very simple process and you should not take you more than an hour to get four or five quotes. You may not be able to get a policy discount like those offered from the company insuring your home, but you should be able to save substantial fees by choosing the lowest price.
Sometimes the lowest price is not the best. When I first started driving, I was insured with a company that had great rates. When it came time file a claim, they gave me the run-around and I was out of my car for three weeks wait for a claims adjuster. Before you sign up, check if the company has any issues with filing claims. After all, this is why we carry insurance even if we’re trying to find the best price that will not break our budget.
