Cheapest Car Insurance Quotes


Cheapest Car Insurance Quotes

Car insurance is one of those things in life that we all have to buy and yet nobody likes..until we are involved in a car accident, that is. Granted, making the monthly car insurance payments is certainly no fun. But if you ever get into an accident - whether it is your own fault or someone else's - suddenly you will be very glad to be insured.

Buying car insurance is an obligation to ourselves, our families and even to the strangers with whom we share the road. We inherit that obligation as part of our right to drive on public roads. At the minimum, buying car insurance is a legal obligation. Others also view it as a moral obligation. And still others just see buying insurance as making good financial sense. After all, one major car accident could wipe out your finances without it.

As with any type of insurance, car insurance essentially amounts to the act of paying a little now in order to avoid the possibility of having to pay a whole lot more at some future date.

Steps To Finding The Cheapest Car Insurance

If already own car insurance but it has been at least a year since you last shopped for quotes, you would probably benefit from doing a little research. To find the cheapest car insurance quotes, you could just do a bit of shopping online or make a few phone calls. But, taking that approach likely will not net you the cheapest deals.

However, by taking the proper steps before contacting insurance companies, you will greatly increase your chances of finding for yourself the cheapest car insurance possible. In brief, the steps are:

1. Figure out which coverage you are required to have.

2. Add any coverage you could benefit from.

3. Know the discounts for which you might be eligible.

4. Shop around.

The Minimum Insurance Coverage Required

There is no single set of guidelines for a minimum required auto insurance coverage at the national level. Rather, the minimum coverage requirements are instituted at the state level. To determine minimal coverage in your state, check your state's automobile insurance website.

In general, however, most states require at minimum something called liability coverage. Liability coverage covers the other party's property damage, medical and other related expenses if an accident occurs that was your fault. Usually, the minimum coverage amounts are listed as three figures (all are listed as dollar amounts): maximum medical coverage per person, maximum medical coverage per accident, and maximum property damage coverage per accident.

Additional Coverage

Note that while your state only requires that you buy a certain minimum amount of liability coverage, it can be wise to buy more. This is especially true if you have moderate to high net worth. Why? Because if you get into an accident and your liability coverage does not fully cover the other party's claims, they may choose to go after your personal assets in order to pay for their claims. By purchasing more liability coverage than is required, you are effectively "insuring" more of your personal assets.

Since liability coverage is required by law in most states, it goes without saying that you will need to buy it. But, that is not the only type of insurance you might want to consider. Remember, liability insurance covers the other party if the accident is your fault. What about covering your own party's property and medical needs if the accident is your own fault? And what about if the accident is the other party's fault and they are not insured? These are common situations whereby someone may need insurance.

If you would like coverage for when the accident is your fault, you will need collision coverage to cover your property damage expenses and either medical payments or personal injury protection (PIP) coverage to cover your medical expenses.

Meanwhile, if you would like to cover yourself against potential property and medical expenses in the event if you get in an accident with an uninsured person and the accident is their fault, you will want to consider uninsured motorist coverage.

In each case, you will want to purchase the minimum amount that you think you will need, but no less.

Know The Discounts

Once you know which types of auto insurance coverage you want, as well as the coverage amounts for each type, it is almost time to start contacting different insurers. But before you do, you will want to figure out which discounts you are eligible for.

Remember, insurance discounts vary by provider. Still, it is good to make a list of the possible discounts for which you will be eligible before you call. Here are some common types of discounts: favorable credits score, good driving record, safety equipment (e.g., air bags), certain professional affiliations, anti-theft devices, training courses, multiple vehicles, low mileage, good grades, employment, degrees held, and renewal of prior insurance with same company.

Compare Quotes

Now, it is time to get shopping! To be as effective as possible in finding the cheapest car insurance available, it is important to contact at least 3 or 4 insurance companies. Make sure that you use a computer or pen and paper to record the important details from each insurer.

Tip: when comparing insurance quotes from different insurers, you are going to want to get an apples-to-apples quote. However, different insurers will try to convince you that you need different levels of coverage or other features and offers. Try sticking to the exact types of coverage for all quotations you solicit. Then, once you find the cheapest insurer, feel free to go back and ask for additional quotes with the other features they recommended.