Affordable Car Insurance

Finding the right car insurance policy takes much more time than just comparing premiums. You need the right amount of coverage and the right type of insurance before operating a vehicle. After all, what good is $100,000 in coverage if your damages are not covered?

If you’re looking for affordable car insurance, be wary of ads boasting about how much you can save just by switching insurance companies. How much drivers actually save on auto insurance depends on the type of coverage, vehicle model, mileage, driving record, and even credit score.

Fortunately, many of the factors that impact the cost of car insurance are within your control. Use this guide to learn how to find the most affordable car insurance rates in your city.

Affordable Car Insurance by Type and Amount of Coverage

The type of car insurance coverage you need is probably the single biggest factor determining how affordable your policy will be. The more insurance you have the more it will cost.

For owners of new vehicles or luxury cars, it often makes sense to purchase $100,000 or more of full coverage car insurance including liability, collision, comprehensive, and even gap insurance. However, for used car owners, you may not need as much comprehensive car insurance and some policyholders even forget to remove certain types of coverage (like gap insurance) long after the benefits of having such insurance exist.

Affordable Car Insurance by Vehicle Model

Sticker shock is not just a phrase used when buying a vehicle — it applies to car insurance also. The problem here is that many consumers decide to get car insurance after buying a new car only to find out that their new car insurance payments are much higher than previous ones.

The fact is car insurance is not fixed nor is it based solely on any one single factor. Obviously, car insurance for an RV is different than family cars, but similar vehicles costing the same amount can still be $500 or higher in difference to insure just based on the vehicle safety record and/or safety features.

Your budget should be based on all the costs associated with owning the car and not just the car loan payment. Before entering any dealership or getting fixated on a particular vehicle always compare car insurance quotes and see how much auto insurance will cost first.

Affordable Car Insurance by Credit Score

Unfortunately for most people buying a car is not a spontaneous decision. This means you are probably going to take some time comparing vehicles, reading car reviews, and even choosing what color you like. During this time good idea is to pull your credit score and make sure there are no errors on your report.

Consumers with good credit scores will get the best car insurance rates and those with bad credit will not feel the love from car insurance companies.

Affordable Car Insurance by Deductible

The car insurance deductible is probably the easiest way to save money on car insurance. Most policies have a $500 standard deductible but increasing this to $1,000 or more can often save 10% to 15% on premiums.

Changing your deductible is different than the vanishing deductible programs you hear about so understand how deductibles work and be prepared to pay the extra amount in the event of an accident well before buying car insurance. Never just accept the standard deductible without knowing your options to save money with a higher deductible.

Affordable Car Insurance by Mileage

Most car insurance policies assume you are going to drive between 10,000 and 12,000 miles a year, but do you have to buy car insurance if you only drive occasionally? What if you work from home or commute another way to work?

If you are using your vehicle part-time then focus on getting part-time car insurance. Some consumers save up to 50% or more buying a low mileage policy. Sit down and calculate a reasonable year of mileage for you and if it happens to fall under 7,500 miles a year then start inquiring about low-mileage car insurance or pay-as-you-go policies.

How to Get The Most Affordable Car Insurance

Competition is huge in the car insurance industry and there are multiple companies who can provide similar coverage with similar customer service. Never just accept the first quote – there are reasons why people switch car insurance companies and you may just be surprised how vast some quotes are different from others.