Budget Auto Insurance: 10 Tips for Badly Needed Savings

The words, Budget and cheap, induce different thoughts in different people, yet they should never be confused with value. The first thing when looking at your annual car insurance bill is to consider the ‘value’ of the policy. If all you ever do is look for bargain-basement deals, you may be surprised about a claim denial or a real shortage in your coverage when you really need it. Instead of looking for the cheapest insurance, look for the best value.

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

Budget Vehicle Insurance

  1. Start from the Top

Evaluate your insurance 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 your life, one possibly involving injuries, it is the one sure way to ensure you are protected financially. You will need the most liability coverage you can get. Having full coverage including comprehensive and collision will most likely cost less in the long run as well.

Whatever you do make sure you are not too lazy to look at all your 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 your choices. Shelter, food & clothing, housing and transportation, and usually in that order; yet be sure not to short-change how important your transportation may be to keeping a job which pays for everything else. Do not push car insurance, as part of transportation costs, lower in priority than other life priorities. Make sure it gets the full consideration it demands. You can get the cover you need at a price that is suitable for your wallet. That is budget vehicle insurance.

  1. Drive Less

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

  1. Get a Long-Term Plan

Starting from the top also means looking at a long-term auto insurance plan. Car insurance pricing is based on a lot of life-factors that you can have an impact on over the long term. Get good grades in school, maintain good credit, go into a profession that is known for lower insurance premiums, avoid dangerous behaviors such as drugs, drinking and driving, move to a lower crime neighborhood and maintain a healthy life style. All these changes will make it easier to achieve your 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 coverage, comprehensive and collision then getting low coverage in liability but getting car rental and other add-ons. Although these are quality products, at the end of the day you need to get three most important covers for most drivers so that you can get best and cheap car insurance coverage.

  1. Get Smart with Budget Car Insurance

Smart coverage means that you protect the most important parts of your vehicle. If you have a 10 year old car that has taken a beating, you may not need comprehensive cover. Yet this does not mean that you should not get collision and liability coverages. You may also want to consider car rental or mobility insurance 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 coverage you can; typically $100,000 single injury coverage, $300,000 multi-injury coverage and $100,000 property damage coverage.

Remember that you don’t have to go for a policy with insufficient cover just because you want economical car insurance. The trick is to find a policy that meets your 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 in the auto insurance world as a sign of responsibility and another risk-reducing 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 premium.

  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 a discount. Here is a list of some of the largest discounts to save you big:

  • Multi-policy discount
  • Good credit score
  • Good grades
  • Certain professions
  • Safe car discounts (airbags, seatbelts)
  • Crash avoidance technologies
  • Affinity Discounts (Associations, Clubs, Corporate discounts)
  • 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 newest crash avoidance safety features, you may be able to affect even greater savings.

  1. Increase Deductibles

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

Share on Pinterest
There are no images.