Cheap Car Insurance Tips

When shopping for car insurance, most of us simply want the cheapest policy to satisfy the state and allow us to drive legally and obtain our registration stickers. Most turn to Freeway Insurance for the best rates. This quest for the most affordable policy is something that countless people embark on every year when their policy renews. Over the years, some methods have proven to be very effective to get the cheapest car insurance with low down payment. Some of these methods I am about to share with you are below.

The first thing to do is make certain that you live in a low-crime area with a garage for your car and is not listed on any insurance company lists as high risk. Yes, I know it is not possible to up and move just for cheaper car insurance, but consider it the next time you do move. A savings of $20 per month in insurance may be worth it if you are using that $20 per month to live in a nicer neighborhood.

The second thing to do is make sure that the car you drive is a typical car that is easy to fix, cheap to replace, and is statistically in very few accidents. This means that you need to buy a four-door sedan with a four or six-cylinder engine, no special turbochargers, and certainly no superchargers.

The third thing to do is consult brokers but shop online. It is always good to get rates from your local insurance brokers, but in the end, you want to compare local prices with those you can get direct auto insurance. If the local guy is cheap enough, then, of course, go to him. But if you find something better online, take it.

The last thing to do is make sure that you do not skip over the companies that do not use brokers and do not use websites. Some companies do a lot of advertising but do not participate in other methods of getting quotes. You need to take the time to call every major-named company that you can think of that does not have its quotes listed on other websites or your broker’s quote comparison. These companies write their own rules and maybe the cheapest option.

Implement these steps and incorporate this into your life, and you will undoubtedly save a lot of money by getting the cheapest car insurance that is possible to get each year when you have renewed your policy.

Is it unfair that you have to get car insurance?

Many people think the government makes its citizens purchase things that are not necessary. Many people believe the government shouldn’t force its citizens to buy car insurance. People who do not think the government should force its citizens to buy car insurance claim that a free country should never make a person buy something if they don’t want to. If you are still unsure which way you see the argument, you probably wonder if it is unfair that you have to get car insurance. So, is it unfair that you have to get car insurance?

No, it is not unfair that you have to get car insurance. It is not unfair for you to have to get car insurance because the government is trying to protect you. Even though it does cost you money every month to pay for car insurance, it is for your own good. You will not have to worry about paying for the damages if you get in an accident by having car insurance. The damages in a car accident can be over ten thousand dollars, which is more money than most people have to give away in one day. Think of it this way; it is better to pay a little bit of money every month for car insurance than to pay thousands of dollars in one day.

Everybody is entitled to their own opinion, but it is not unfair that you have to get car insurance. Even though you might not like it, the government is making you get it for a reason. The government wants to make sure that a car accident doesn’t leave you financially unstable, which is why car insurance is so important.

Cheap Car Insurance Terminology

There are a lot of terms and definitions that are unique to car insurance, and it is essential to know what all of those terms mean and how they relate to a policy. But when it comes to getting a cheap car insurance policy, a few terms are essential to understand. These terms can make a policy appear reasonable and yet not as good a deal as it seems on the surface.

The first is Actual Cash Value. When reading your policy and discovering the amount the insurance company may pay on a claim, knowing the definition of actual cash value versus replacement value is very important. Actual cash value is the amount that two unmotivated sellers would pay on an open market for the vehicle. At the same time, replacement value is the price that needs to be paid to replace the vehicle in the same condition as before the claim.

Additional Equipment Endorsement is also another essential phrase. A cheap car insurance policy may not include coverage for any special parts or extras added to the car over and above its stock condition. The lack of this endorsement can make a policy appear cheap when actually it is an expensive policy that simply does not cover your entire vehicle.

Endorsement is a term you need to look for throughout your policy. An endorsement can change the terms of a policy by adding just a few words. Remember that when you see an endorsement, that endorsement overrides anything said in the rest of the policy that relates to the same issue. Remember that an endorsement negates other statements; it does not “add to” those statements and coverages.

Loan gap coverage is a final term that is important to understand. The lack of this coverage in a cheap policy can lead to you still owing on a loan if your car is totaled and the unpaid loan balance is for more than the car’s value. With a cheap car insurance policy on a vehicle with a loan, make sure the policy includes loan gap coverage.

Cheap Car Insurance Coverage Limits

Before you purchase that incredibly cheap car insurance policy, you should take a moment to think about why you are buying the policy, what it is for, and how you could be making a wrong decision by purchasing a too cheap policy. Of course, for many, there is no such thing as “too cheap,” but the fact is that insurance is one of those things that we never want to purchase, but we are delighted to have when needed. This is the problem with buying a cheap car insurance policy that simply has coverage limits that are too low to truly protect you from the liability that is involved in driving. Even if the policy is from an excellent company with a reputation for paying all of its claims, the fact that your coverage limits are too low will mean that the company will pay out the limit, and then you will be left on your own.

This is a crucial point to understand. Suppose a car insurance policy has a maximum policy coverage limit of $30,000. You are in a severe car accident where medical bills for you and the other parties will reach hundreds of thousands of dollars. In that case, your insurance company may simply pay the hospital their maximum $30,000 policy limit and walk away from you. This is a common occurrence when people have purchased a cheap car insurance policy with low coverage limits. But if you took the time and paid a little bit of extra money to have high liability coverages, then that insurance company will stick with you. That insurance company’s lawyers will defend you in court against other liability. Because their insurance company will have a lot of money on the line, you will benefit from their attorneys fighting to keep the overall claims low.

Therefore, the moral of the story is that insurance is essential when you have big problems and have been in a significant accident. Buying a cheap car insurance policy that has low coverage limits simply gives the insurance company the ability to walk away and let you defend yourself. But with high coverage limits, the insurance company will protect you like you were their child. In this instance, that little extra you paid for an insurance premium will have purchased you the best legal protection that money can buy.

A few good things to remember while buying new car insurance

A new car needs something more than just liability insurance. In most cases, car owners have to take care of loans that are not paid, and the damages seem too costly for repairs. In addition to this, spare parts are often scarce, and if your car belongs to the latest line, you’ll find it too expensive to get them even when they’re available. An automobile depreciates much faster than the rate at which the loans are repaid. This is undoubtedly a good reason why car owners need coverage for theft, natural disasters, accidents, and collisions. There are a few good steps that you may follow while getting coverage for your new car.

  • Shop a lot

You must obtain car insurance quotes from different sources while considering an insurance policy for your new car. This way, you’ll be able to compare all available market prices and identify the one that suits your budget. You’ll also be able to negotiate in a better way. Remember that one insurance carrier might just offer a better deal than another. Even when the prices remain constant, the benefits may vary. For instance, you might pay an extra amount if you can achieve collision and comprehensive coverage through negotiation and thus get covered for all scenarios.

  • Collision and comprehensive coverage is a necessity

Mandatory liability insurance is obtained by many car owners who don’t prefer to go for Collision and comprehensive coverage. Collision coverage has to make sure that you’re covered for all damages caused during an accident regardless of whether it was you who caused the accident or if it was someone else. Likewise, comprehensive coverage protects your car against unforeseen risks arising out of hurricanes, cyclones, and earthquakes. Protection has to be taken against other factors like vandalism, theft, fires, etc. The expenses that you incur following an accident are pretty less when compared with the extra insurance cost that you’d need to bear in the long run.

  • Consider Gap Insurance

GAP insurance is a different type of policy that new car owners prefer to have. If your car gets stolen or lost, the gap between the market value of the damaged car (which is reimbursed by your other policies) and that of your unpaid loan amount is met by this insurance. You must go for this option if your car model is an expensive one. With such costly models, the unpaid balance of your car loan remains much higher when compared with the real market value of your car. This happens as your vehicle depreciates much faster.