Budget Auto Insurance: 10 Tips for Badly Needed Savings

We have to make sure that we get value for money by finding the auto insurance coverage that meets expectations and friendly to budgeting targets. After all, most of us can only spend limited amount each month. The words, budget and cheap, induce different thoughts in different people. Unfortunately, they can suggest that there is a reason behind an attractive price tag. So, we need to ensure that this isn’t the case and we really get our money’s worth. In other words, we get what we want at a lower price, rather than we get something else that was cheaper.

This can be done by going through a rigorous value finding examination. No matter what others say many people desperately need low cost auto insurance that will provide the essential coverage but won’t break the bank. So, you should be able to pinpoint what you really need from a policy and get to work to find it. Below tips will help you.

Budget Vehicle Insurance

  1. Start from the Top

Evaluate what is your protection needs first. Many people make the mistake of thinking it is one of the things that they can scrimp on. However, the fact that you will be involved in up to 4 accidents in a life time, one possibly involving injuries, it is the one sure way to assure you are protected financially. You will need the largest liability coverage you can get. Having full coverage including comprehensive and collision will most likely cost less in the long run as well, following the above logic.

Whatever you do make sure you are not too lazy to look at all the options carefully. Many people give up easily and feel that they should choose one of the few quotes they received.

  1. Juggling Priorities

When you are already cash-strapped, there is an order to choices. Shelter, food & clothing, housing and transportation, and usually in that order; yet be sure not to short-change how important transportation may be to keeping a job which pays for everything else. Do not push car insurance, as part of transportation costs, down in priority than other life priorities. Make sure it gets the full consideration it demands.

Remember, the goal is to get the cover you want at a price that is suitable to your wallet. That is budget vehicle insurance.

  1. Drive Less

One way to cut a premium is simply to drive less. In urban areas, take mass-transit, car-pool or cycle to work as much as possible. The less is the mileage the less chance of an accident. You may also qualify for low-mileage discounts as well.

  1. Get a Long-Term Plan

Starting from the top also means having a long-term view. Premium pricing is based on a lot of life-factors that you can influence it over the long term. Get good grades in school, maintain good credit, avoid dangerous behaviors such as drugs, drinking and driving, move to a safer neighborhood and maintain a healthy life style. All these changes will make it easier to achieve the goal of finding an attractively priced policy.

  1. Cut Where You Can

There may be an opportunity to cut certain extras. It would be better to have the highest liability limits, comprehensive and collision than squeezing in car rental and other add-ons at the expense the three just mentioned. Although these are quality products, you should focus on those three so that you can get best and cheap car insurance.

  1. Get Smart

Smart coverage means that you protect the most important parts of the vehicle. If you have a 10 year old car that has taken a beating, you may not need comprehensive. Yet this does not mean that you should not get collision and liability. You may also want to consider car rental or mobility to replace comprehensive to ensure you can still get to work if your car is wrecked in an accident. Smart basic coverage also means, getting the best liability you can; typically $100,000 single injury, $300,000 multi-injury and $100,000 property damage.

Remember that you don’t have to go for a policy with insufficient cover just because you want budget car insurance. The trick is to find a policy that meets basic protection needs and is still cheap. That is finding the value and not being cheap.

  1. Get Quotes Annually

Have you turned 21, 25, gotten married, graduated college or gotten a new job? All of life’s major milestones are generally accepted as signs of responsibility and another possibility for a further premium reduction. However, you do not get these drops in prices if you never ask for updated quotes or switch companies. Instead you keep paying same old expensive rates.

  1. Ask for Every Discount

One of the best ways to save big is to check into every possible discount program a company may have. You may not even realize all the ways you can get it. Here is a list of some of the largest discounts to save you big:

  • Multi-policy
  • Good credit score
  • Good grades
  • Certain professions
  • Safe car discounts (airbags, seatbelts)
  • Crash avoidance technologies
  • Affinity Discounts (Associations, Clubs, Corporates)
  • American Military member
  • Driving metric sensor
  • Pay online
  • Pay in full
  • Take an advance driving course
  • Install an anti-theft device
  • Maintain an infraction-free driving record
  1. Buy a Different Vehicle

If you have a vehicle that is listed in your state or nationally as one of the most stolen cars in America, you are paying higher premiums than another model. By buying a newer vehicle that also has the latest crash avoidance safety features, you may be able to force even greater savings.

  1. Increase Deductibles

Lastly, you could increase policy deductibles to lower premiums. This can substantially cut monthly cost to a level that can be called budget auto insurance. However, you should remember that it will substantially increase one-time out of pocket costs in the greatest time of need; during an accident. In that case, do not raise deductibles beyond what you could pay out of pocket. Read further to learn how do deductibles work.