Cheap auto insurance is the goal of almost every driver. However, in searching for cheap auto insurance, drivers must be careful not to worry only about the price of the policy and not the coverage offered, also be aware about the free auto insurance quote available. Auto insurance that can’t handle the cost of insurance claims is a disastrous idea no matter how inexpensive the policy.
How to Get Cheap Auto Insurance with Enough Coverage
- Set liability coverage reasonably. This is perhaps the most crucial decision a driver can make while searching for cheap auto insurance. Liability coverage spells out exactly how much the policy will cover in three situations – payment for the claims of one individual, payment for all individuals in a wreck and payment for all property damage. You can set the liability coverage as low as you want and that will result in a very attractive policy price. But you must at least meet the minimum in your state, which may not handle all the claims in a serious accident that’s your fault. Maine has one of the stiffest state requirements with $50,000/$100,000/$25,000 limits. A driver with assets such as a home and investments should consider higher limits. In a serious accident involving several injuries, a driver can be sued personally if his or her insurance policy doesn’t cover all the damages therefore a nice way to pick the cheapest auto insurance company.
- Set deductibles carefully. The deductible is the amount of money – usually between $100 and $1,000 – that a driver pays out of pocket before the insurance company handles the rest of the claim. The higher the deductible, the lower the cost of insurance. However, if the rate is boosted to $1,000 based only on saving money on the policy cost, potential disaster could await the next claim or two. If the driver can’t afford to pay high deductibles such as $1,000 for claims, it’s a dangerous game to go ahead with cheap auto insurance and hope there isn’t a claim. The deductible comes in play for two main areas of coverage in the policy – collision and comprehensive. Collision pays for claims resulting from auto accidents. Comprehensive pays for claims resulting from damage that isn’t the result of an accident, such as a fire or flood.
- Assessing what coverage is necessary. With the exception of liability coverage, which is legally mandated in virtually every state in the country, a driver can opt not to include some coverage. Coverage that is most commonly dropped is collision or comprehensive. Drivers with older cars that have lost much of their value will often drop those coverages as they seek cheap auto insurance. If there is an accident, the driver has already decided to look for a new vehicle instead of staying with an older wrecked auto. If rental or road service coverage is part of your policy and you already have that in a motor club membership, for example, that coverage can also be dropped thus a powerful measure to determine your car insurance rate.
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