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How to Buy Cheap Car Insurance: A Quick Guide to Finding the Best Price

Updated: September 5, 2018

Getting cheap car insurance is something that everyone wants, but not everyone knows how to go about getting this result.

The problem is that a number of individuals are simply unfamiliar with the different facets involved in car insurance.

They do not realize that car insurance policies are made up of different components.

This lack of realization often leads to people accepting policy quotes that are not in their best interest.

The best thing you can do in order to find cheaper car insurance is to learn all about auto insurance and its different facets. This gives you a chance to get the best value in a policy.

What is Car Insurance?

The first step towards getting cheap car insurance is to understand auto policies and how they work. Why do we even have car insurance?

In reality, some parts of auto insurance are designed to protect your car, while others protect other people and their expenses.

The basic idea behind car insurance policies is to protect everyone who is on the road. Your auto policy not only protects you and your vehicle, but it protects everyone else who is driving when you are on the road.

Each auto policy is made up of different parts. This is what leads people to sometimes confuse the auto quotes they receive. When they hear things such as “comprehensive auto insurance,” they think they are getting a comprehensive policy that completely protects them.

In reality, some parts of auto insurance are designed to protect your car, while others protect other people and their expenses. Learning about all of these parts will help you design the best policy for your circumstances.

Individuals should also remember that insurance agents will never have your interests in mind. They simply want to sell you a policy. It is up to you to get the policy that best meets your needs financially and in terms of adequate protection.

Different Parts that Make Up Car Insurance

A simple car insurance policy is made up of three main parts. There is liability insurance, along with comprehensive and collision coverage. Each of these parts serves a different purpose.

If you only have liability insurance, you have no protection for yourself or your car when you cause a crash.

Liability insurance, which is often mandatory in parts of the United States, is there to protect everyone else who is on the road when you drive. If you get into an accident and cause damage or injure someone, liability insurance pays for the related costs.

If you only have liability insurance, you have no protection for yourself or your car when you cause a crash. This protection comes from collision coverage and potentially from medical expense add-ons.

There is also comprehensive coverage, which protects your vehicle in the time that it is parked in your garage or somewhere else. If someone steals your car or vandalizes it, comprehensive coverage pays for the damages.

It is up to each individual buyer to decide whether they need one or all of these car insurance parts. Insurance companies even offer additional add-ons, such as roadside assistance, uninsured motorist protection and adding additional drivers to your policy.

How to Buy Cheap Car Insurance

The best way to get cheap car insurance is to shop around for a policy. This may sound overly simplistic, but you cannot find cheaper car insurance if you only look at three or four quotes.

Compare all of these quotes, not only regarding the price but also in terms of the coverage offered.

The first thing you must do is make a long list of all the reputable insurance companies that service your state. Go on the website of each company and request a quote. Provide real and honest information about yourself, otherwise the quote is inaccurate.

Compare all of these quotes, not only regarding the price but also in terms of the coverage offered. If one policy is slightly cheaper than another, but offers much less coverage, it is not necessary cheaper car insurance.

If you are dealing with an agent or finding quotes online, be sure to ask the insurance company about discounts they offer. There are discounts for getting good grades, being a teacher, belonging to certain organizations or unions and having a safe driving record.

Each discount may have a small price reduction attached to it, but they can add up to save you a lot of money on auto insurance every year.

How Much Car Insurance Do You Need?

The second part of getting cheap car insurance is deciding how much coverage you need in your situation.

For those people who have a car through an auto loan, you have no choice but to get comprehensive and collision coverage.

There are some people who simply need the cheapest policy they can find from a reputable company. This means forgoing comprehensive and collision coverage. But you cannot avoid getting liability insurance, because most states make it legally mandatory. It is against the law to drive without the minimum level of liability coverage determined by your state.

For those people who have a car through an auto loan, you have no choice but to get comprehensive and collision coverage. Your loan company will make it mandatory, and they will take the cost of this insurance out on your loan if you ever attempt to remove those two types of insurance.

Individuals and families who have new, expensive cars should get more car insurance. This is a general rule, because you want to sacrifice saving money on premiums to get the added protection.

Saving a few hundred dollars is not worthwhile when you could be looking at thousands of dollars in repair expenses if you crash your new car.

What Companies to Trust for Cheap Car Insurance?

Another important decision about getting cheap car insurance is regarding the company you choose as your insurance provider.

By shopping around, you can change your provider every few years and pay much less for insurance on an annual basis.

One rule everyone should know is that you must never stop shopping around for insurance. Even if you are happy with your current policy, you should remember that there are more discounts out there every single year.

By shopping around, you can change your provider every few years and pay much less for insurance on an annual basis.

But never forget to take into account a company’s history and reputation when you are considering cheap car insurance. Finding cheaper car insurance does not mean settling for a company with a poor reputation and a minimal history. Companies with poor reputation take ages to fulfill claims, have poor customer service records and will attempt to cheat you out of compensation you deserve.

As long as you only shop around within your list of reputable companies in the state, you are in good shape when it comes to getting cheap auto insurance.