Car insurance is a contract between you and your insurer that protects you from financial loss in case of an accident. It can also provide legal protection if you’re sued or if another driver files a claim against you.
The best way to shop for car insurance is to compare quotes from different companies. By doing so, you can find the cheapest auto insurance in your state.
When comparing quotes, make sure that all the insurers have the same coverage and limits on their policies. This will ensure that you’re comparing apples to apples and that you aren’t accidentally choosing the cheapest option that doesn’t have enough coverage for you.
Get an online quote: Most insurers offer a free, online car insurance quote on their websites. Once you’ve entered some basic personal information, such as your address and ZIP code, the quote will be generated for you. You can then choose the amount of coverage you want and select a policy start date.
Your car’s age, safety features and other factors affect your premiums. If you’re a young driver, or if you drive a high-risk vehicle, you may be eligible for discounts.
You can also bundle your home and auto insurance policies, which can help you save money on your overall coverage.
Know what car insurance covers:
There are six common types of coverage that most car insurers offer. These are liability coverage, uninsured motorist coverage (UM), bodily injury protection, property damage protection, medical payments and collision coverage.
Liability coverage reimburses you for medical expenses and other costs if someone else is injured or killed by your negligence. It also pays to repair or replace the other party’s vehicle and any other property you damage.
Bodily injury and property damage: This type of car insurance covers you for injuries to other drivers, their passengers and pedestrians. It can also cover your own medical expenses and lost wages if you’re involved in an accident.
The minimums required by your state vary widely, so it’s important to check with your local department of motor vehicles or our Auto Insurance by State guide to learn what is necessary in your area.
Buying a car can be an expensive undertaking, so it’s important to shop around for the cheapest possible car insurance. If you can, buy the highest-quality car you can afford, and make sure it meets safety standards.
Consider adding uninsured motorist, medical payments and other optional coverages to your auto insurance policy for greater peace of mind.
Add a deductible:
One of the most important things to remember when shopping for car insurance is to choose a deductible that’s appropriate for your situation and budget. The deductible will determine how much you pay out of pocket for a claim, and it’s often the biggest factor in determining your car insurance rates.
Adding an additional deductible to your policy will lower your car insurance rate, but it can increase your out-of-pocket cost if you have a claim. If you decide to go with a higher deductible, you’ll want to be sure that you have adequate emergency funds set aside.