When determining how much car insurance you need, it is best to know exactly what coverage you actually need. In other words, do not overpay for coverage that you don’t need. Instead, purchase enough coverage to cover your legal obligations and the risks that you might face on the road. This way, you can compare rates fairly without sacrificing coverage. The amount of auto insurance you need depends on your budget and state’s requirements.
Age is another factor in determining what kind of insurance you need. Young drivers, for instance, may find that their rates are much higher than those of middle-aged drivers. As you age, car insurance companies raise rates to reflect increased risk. To avoid paying more, consider a safe vehicle with low insurance rates, which might cost a little more up front. In addition, many insurers use credit-based insurance scores to determine rates.
While there are state-specific rules regarding credit history and auto insurance rates, credit scores are generally not used by insurers in Massachusetts, Hawaii, and Michigan. Even though credit score isn’t used by insurers in these states, it is still a factor that increases rates, sometimes even more than a DUI or other conviction. In addition, new drivers are typically considered to be riskier to cover, which means it’s difficult to find affordable car insurance.
While there are plenty of ways to find the cheapest car insurance, the best way to ensure you’re getting the best deal possible is to compare quotes from different companies. You may find one that meets your criteria and has a high discount for military drivers, for example. There’s also a large range of discounts that you can apply to your coverage that will make it even cheaper. For many drivers, finding the cheapest car insurance will simply require a few clicks online.
The cheapest car insurance in a particular state depends on the type of coverage you need. The cheapest car insurance in California is GEICO, while GEICO is the most expensive in New Jersey and the District of Columbia. State Farm and USAA both have varying requirements, but in the long run, GEICO will be the best choice. These companies are regional, so check with your state’s laws before making a decision.
A multi-car discount involves insuring multiple cars with the same insurer. You can receive this discount at the start of the policy or when you add a second vehicle. Paying premiums in full can earn you the highest preferred payment discount, which can amount to $73 per year. Another way to get cheap car insurance is to buy it “direct” from the insurance company. This option allows you to select the insurance company without an agent, but it has a few disadvantages.