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Finding Cheap Auto Insurance

By Charles Hopkins Published 11/30/2007 | Auto and Trucks
Finding the cheapest possible auto insurance is probably the goal of many car owners.  Auto insurance premiums, although not the most expensive in the insurance industry (except with extremely valuable automobiles, of course), can still add up to a considerable expense.  Thus, it would be most practical, indeed, if you can find adequate vehicle insurance coverage for the lowest possible price.

Bare Bones Auto Insurance

To find cheap auto insurance, you need to whittle down your requirements to the barest necessities.  No, this does not mean that you have to find the plan with the cheapest premium and the most basic coverage.  What this simply means is that you should get an insurance policy that will give you exactly what you need without the extras that can raise auto insurance premiums.

For cheap auto insurance, therefore, first you need to know the type of coverage that you need.  For instance, if you need just insurance for your car since you already have adequate liability coverage, then you can forego auto insurance that offers liability coverage.  If you already have medical insurance that gives you coverage in case of vehicular accidents, then you may not need auto insurance that comes with such an extra.

By knowing what you need in your auto insurance, you can shave a considerable amount off your auto insurance premiums.

Its the State Youre In

If you want cheap auto insurance, perhaps you should consider relocating?  You see, some states (like New York) have higher average auto insurance premiums than other states.  Metropolitan and urban areas with a high percentage of vehicle users are high-risk for vehicular accidents so residents of such places usually have to pay higher auto insurance premiums.

Track Record

Aside from your location, your past auto insurance record is another factor that insurance companies use in determining the amount of auto insurance premiums that theyll ask you to pay.  If you have a spotless record you have never been involved in a vehicular accident and therefore have never made an auto insurance claim you present a smaller risk to insurance companies and theyre much more likely to charge you cheaper premiums.

The Cars Value

The value and make of your car, moreover, will also affect the price of your insurance premiums.  The more valuable your car is, the higher your insurance premiums are going to be.  Thus, if youre getting a vintage, collectible car insured, expect to pay through the nose for it.

Risk Behavior

Finally, your personal characteristics, life style and other information about you will be used to assess your auto insurance premiums.  Your gender, your occupation, your risk behavior, and other factors will be evaluated.  Obviously, if car racing is your occupation or hobby, you wouldnt have much hope of landing cheap auto insurance.