Auto InsuranceInsurance

Cheap Auto Insurance

Cheap Auto Insurance

How much you pay for your auto insurance will depend upon the information that you provide to the car insurance company on the application form that is required before you can be insured. To obtain the cheapest car insurance, you may want to do some basic homework and make a difference between what you must have and what will be nice to add to the policy.

A lot of information is considered during the car insurance application process. The details that matter the most are where you live, driving records, previous accidents and claims, your occupation and of course, the kind of vehicle you want to insure. Many of the newer vehicles are equipped with many of the features that older models don’t have. In this case, many people are under the influence that a newer model vehicle is best, but this is not always the case. When shopping for your next car, you need to priorities the affordability of insurance. Some people ignore this, but it comes as a surprise for some to find out that they are expected to pay more than price of the actual car to get insured.Cheap Auto Insurance

To get the cheapest car insurance that applies to you, you will need to know a few tricks of the trade and how things work in the insurance world. A newer car model will be grand, but the insurance that you need to cover it can more expensive that you would have thought. Trying to insure a family car like 2010 Honda Accord with base MSRP of $21,055 to $29,105 will cost a fraction of what it will be to insure $484,000 Porsche Carrera GT, even though the latter is 2006 model. It’s simple mathematics. The more your car is worth, the more money the car insurance provider will ask the cover it.Cheap Auto Insurance

Many people don’t factor in all of the details that should be considered. Even though you may be able to afford the car itself, can you also afford gas, maintenance and most importantly insurance? A lot of people don’t consider these factors and end up with high recurring bills that make owning a car the start of a financial nightmare. It doesn’t have to be. Erring on the side of caution and doing some basic calculation on cars with cheaper running costs, less gas consumption per mile and so on will ultimately pay off by being able to easily find the cheapest car insurance available for your circumstances.

Car safety equipments are also factors that help drivers find inexpensive car insurance. The U.S. Department of Transportation suggested that over 60% of the usual car crashes could be avoided by the adoption of the latest accident avoidance systems. Many car manufacturers are already installing lateral drift warnings and lane guidance systems to warn drivers of potential light or serious crashes before they occur. From an insurance perspective, this means that the up-to-date vehicles equipped with useful and effective safety features will qualify for car insurance discounts. This is great, but at the same time, you will still be paying for a top of the range vehicle and the probability of it being damaged or stolen. It’s a catch-22 and it’s up to you to decide on a good balance between an affordable auto insurance and safer car to drive. The good news is that there are cheap cars with good safety devices, which still qualify for inexpensive car insurance.Cheap Auto Insurance

The best way to get the cheapest car insurance available to you is to shop around. You need to the follow the basic rules of comparison shopping to find the lowest car insurance. The same way you went shopping for your favorite car at the right price. It may take you between a few days to few weeks get everything consolidated, but once you have done that, keep all of the research that you have done in a folder. If you want to cut down on the paperwork, go online and use the box below for your zip code and we will do most of the work for you.Cheap Auto Insurance

Many people who are searching for the cheapest car insurance quotes are usually on a budget. If this is the case, you will definitely want to go ahead and apply for the state’s minimum requirements. These requirements are the ones that your state has set in place for you drive around legally. Needless to mention, this will be the lowest amount of coverage that you will be able to obtain. Contact the Bureau of Motor insurance in your states for more information Cheap Auto Insurance

On another note, you can always purchase a cheaper car and have a few safety features installed. The older the make and model of the car is, the more you will be able to save because it is less likely that you car will be stolen or damaged. If that happens, it’s cheaper to repair or replace. A few safety features you could add would be GPS navigational systems, alarms, airbags, anti-lock brakes and brighter and automatic headlights. There are quite a few safety features that you are able to install, but those are the basic and most popular ones.

Here are some basic rules to follow if you want to get the cheapest car insurance available:

– Raise Deductibles:

Increase how much you are willing to pay in the event of an accident. If you are a careful driver, you could be saving yourself hundreds of dollars a year.

– Combine Insurance Policies:

Most insurance companies offer discounts on combined insurance policies to get all your business. The most common are multiple car insurance and home and auto policies. Make sure you check if your carrier offers this option. If not, consider switching.

– Ask for Discounts:

There is one old saying “if you don’t ask, you don’t get”. It true in the insurance world as well. A simple “As I’ve been a customer of yours for 5 years with good records and no claims do you I qualify for discount?” can go along way in getting you some car insurance discounts and even some freebies.Cheap Auto Insurance

– Review your Insurance Policy Each and Every Year:

OK, we all get lazy over time and rather spend more time with a family than going through the same hassle every year. But, the insurance market changes each and every year and the policy you got this year may not be the cheapest next year. So don’t just let you auto insurance provider renew your policy for you without first checking if it still provides value for money.

– Avoid Expensive Vehicles:

Refer to Honda vs. Porsche example above.

– Location, Location, Location:

Choose a good neighbourhood, whenever you can. Living in an area with high crime rates, many reports of cars damaged or stolen doesn’t score you any good points when it comes to auto insurance. If unsure, where you are moving, rent or buy place with garage where you can safely keep your vehicle.Cheap Auto Insurance

– Use Car Safety Equipments:

Some comes as standards, while you may need to add them on others. Most of them are cheap to fit, but it all depends on the type of the car. Find out which one makes a difference on your policy before you start asking for quotes.

– Don’t Rack up More Mileage than Absolutely Necessary:

You can save yourself a lot mileage, insurance and hassle by simply avoiding to drive the car everywhere unnecessarily. Most car insurance companies will require you to provide the expected annual mileage and what you will be using the car for. The more mileage you do the more risk you are of being involved in an accident in the eyes of insurers. That doesn’t help reduce you car insurance premium.

– Don’t Pay Monthly:

It may seem easier to pay $56, $72 or $87 a month than shelling out $500 or $700 a year. The truth is, if you pay monthly, the insurance provider will add interest. So instead of paying say $600 a year, you pay an extra $100 or $150 a year interest. Pay 6 months or 1 year in full whenever you can and save the rest for gas! Cheap Auto Insurance

– Be Careful Who you Add to the Policy:

Most family drivers add their partners and even their teenagers to the policy. This is OK, but it hidden in the car insurance policy is a huge hike in price caused by a single driver. Young drivers or those with bad records and previous claims will raise your premium, even if you have been the best driver in the world you entire life. Be careful who you include as driver in your coverage as it will become much harder to find the cheapest car insurance with a teen or bad driver in your policy.Cheap Auto Insurance

– High Density Areas Attract Higher Premiums:

We all know that leaving in the suburbs or outskirt of cities costs less. The same applies to insurance. New York city will not be the place to find the cheapest car insurance in the country, which means you need to consider cities or town with low density or less people per square miles. The highest density areas attract large number of cars, stressed drivers and lots of accidents.

The following are some numbers from a report release in 2009 by the National Association of Insurance Commissioners with top 5 cheapest and expensive states for car insurance:

Most Expensive States for Car Insurance:

1 Washington D.C. $1,140
2 New Jersey $1,104
3 Louisiana $1,096
4 New York $1,047
5 Florida $1,043

States with Cheapest Car Insurance

1 North Dakota $512
2 Iowa $518
3 South Dakota $534
4 Nebraska $554
5 Idaho $564

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