Cheapest Car Insurance: A Complete Purchase Guide

Do you want to buy cheapest car insurance? It’s a Good move as buying insurance is both protective and legal requirement. To help you, we are providing with basic guidelines about what is Auto Insurance, how to buy and benefits of being insured. Starting with introduction to insurance, we are providing with everything you need to know:

Car Insurance purchase Guide

Car Insurance Guide

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Introduction to Car Insurance

Car Insurance protects you and others (on your behalf) in case you injured or damaged their property. It also protects you if your car is damaged in accident or stolen. You insurance policy defines your protection.

Car insurance policy is a contract between you and insurance company.  Being a customer, you pay certain amount better known as premium to the company. In exchange, you receive a set of selected coverage. The insurance policy decides what will be covered and not.

1. What car insurance covers

At certain levels, car insurance provides with 4 basics. These are explained as:

  • Liability: Coverage: For injuries and property damage caused to others
  • Damage to car: Coverage for damage to your car
  • Medical Expense: Coverage for you medical bill
  • Uninsured Motorist: For situations where someone uninsured causes injuries or damage to you

There are different set of coverage options, they are different varying on state and companies.


2. Basic Car Insurance Coverage Options

These are simplified descriptions of common coverage. All these coverage are subject to their own restrictions, terms and conditions of the actual purchase.

Injury Liability Coverage: This pays for the damages of bodily injuries to driver and passengers of other car caused by you. It also defends you if someone sued you of car accident.

Property Coverage: It pays for damages caused to others property by you. It also defends you if are you sued of a car accident.

Medical Payment: it covers yours and you relative/passengers medical expenses from injuries sustained in auto accident. This also covers medical expenses of pedestrian hit by you. Some states opt for Personal Injury Protection in addition to medical payment coverage. Its better known as no fault coverage as it pays for medical, funeral, loss of income and other such expenses for injuries or death because of auto accident

Collision Coverage: Collision pays for damage to your car caused by another person, object or even overturn. Separate charges are applied for this.

Comprehensive Coverage: This provides coverage for damage of your vehicle if it`s damaged or stolen under specified terms rather than collision. These terms include fire, hail, vandalism and even theft. Separate Charges are also applied here.

Uninsured/Under-insured Motorist Coverage: This pays for damages for bodily injures to you and passengers caused by others in car accident. This applies when the person is responsible legally or is uninsured/under-insured.


3. What an Auto Insurance Policy Consists of

A car insurance consists of three parts. When put together, these form an insurance policy.

Declaration Page: This shows the information specific to you and policy. Information such as name of policyholder, policy number, term, liability limits and deductibles select with premium are mentioned here. This also shows applicable discounts to policy, other drivers and specific vehicles which are insured. Apart from that, it also mentions other documents forming the policy. Usually it`s longer than one page. Put simple, it’s tells what base your policy with endorsements.

Base Policy: It spells out basic provisions of insurance coverage along with responsibilities of the insuring company. This also sets forth responsibilities of policyholder. These responsibilities include payment of premium and notifying the company of an accident.

Endorsements: These alter the Base Policy just as revision modifies a contract. These can add, limit, delve, broaden and even change the Base Policy.

It is important to attentively and carefully read declaration pace, base pose and application endorsements as they form up insurance policy.


4. What should you consider before buying a car insurance?

Before buying cheapest car insurance, make sure your chosen package fulfill your needs. Remember you and your family`s precise state of affairs. This includes risk tolerance and budget. If you are not sure what you need to consider, learn the following before contacting an insurance company.

  • Household Salary, Assets, Savings and Equity

Higher your salary or net worth, more you can afford to lose if you are liable for accident. The more asses you have the more coverage you need.

  • Age and worth of car, owned outright or leased

Model year and original price of car helps valuating the current value of car in present market. If market value is low and you own it outright, reconsider your decision of comprehensive and collision coverage. But if you lease or finance car, you lender/car dealership needs comprehensive and collision coverage.

  • Pay out of Pocket

Deductibles are applied to different coverage, this includes both comprehensive and collision coverage.  In an accident, deductible is amount you must pay out of pocket before insurance shouts up. Remember, higher deductible lowers premium.

  • Health Insurance

Cheapest car insurance includes medical coverage for you and your passengers. In case you don`t have your own medical coverage, you need to buy health insurance for policy.

  • Children of Driving Age or Not

Children are inexperienced drivers therefore they pose great risk on road. If you have children who are of driving age. Considering buying insurance with higher liability limit.

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How to Buy Cheap Car Insurance

If you are under the expression driving uninsured cars is illegal, then you need to learn some fast facts. Every State in United States have different Laws governing car insurance. Driving a car without collision or comprehensive insurance is legal. Driving without liability insurance is illegal. With today`s fast pace, choosing an insurer is not enough. it`s important that car owners choose insurers which suits their needs best. The prices are not different just from state to state but also from company to company. To help you make better decision, here is the complete guide for choosing the best!

Consider your Requirements: There are only a few recognized car insurance companies. The best start is considering your needs and preference.

Breaking it down: This insurance is made of six different coverage. Each of them is price separately with you bill. However, some coverage here is not applicable considering older car models. Learn everything about each coverage before you sign up.

Listing Insurers: before pricing the policy, there are other aspects which may surprise you. Such as not every cheapest car insurance is allowed to operate in every state. To make the right choice, avert to State Insurance Department for licensed listing and for any problem.

One Year Rate: Today most insurers are only offering 6 months long plan. It simply points out rates will be raised after only half a year. If you succeed for finding policies which last a year long, you will enjoy additional benefits.

Remember Pricing: Rates depend on different factors. These factors range from engine size to credit history. Therefore, get price quote from at least three insurance companies. Now compare the apple with apple keeping protection for each coverage in mind.


1. Comparing Different Companies

As the option list is narrowed, price is important factor for choosing car insurance company. To save money, try buying cheapest car insurance from the same company insuring you home. Several Companies offer discount, but keep these following in mind!

Price: Compare Quotes to Pricing from reputed insurers. Contact local State Insurance Department for further assistance.

Financial Strength: Even if you get the affordable car insurance, still there are high chances of dissatisfaction. It is possible insurer company would be absent when it comes to pay the claim. Before you pick an insurer, check his financial strength. It helps saving yourself from investing in the wrong firm.

Claims and Complaints: There are several Different Level of Claims. You need to find one capable of handling claims with efficiency. Determine this from initial interactions with an insurance company`s officer and former clients. Apart from that, you should also contact State Insurance Department. They will provide you with better Insight.


2. Clipping the Premium

As you have come with terms of insurance Policy, you need to take advantage of opportunities for reducing premium.

Increase Deductible: Raising Deductions can help reducing premium. It can help you saving up to 15% 50 30%. Just ensure you afford deductible in case of an accident.

Reduce Coverage on Old Models: it`s not wise to pay for collision or comprehensive coverage for cars not worthy of what you are paying for their coverage.


3. Grave Mistakes to Avoid

Skimping Coverage: Purchasing the affordable car insurance is tempting keeping the minimum liability according to law in mind. Don`t forget accidents sometimes can cost more than what you expect. Therefore, considering raising liability coverage to protect savings and assets from accident which you are at fault. Buy both collision and comprehensive coverage if you want to protect yourself and your car.

Waiting for Discounts:In case you are not a heavy user, you can use usage based insurance. This is a mileage based discount which can save up to 30%. Insurers don`t know about this mark-up unless someone mentions it. You can also enjoy discounts if you belong to an association. Don’t wait too long for insurance discount offers and never hesitate to ask around.

Buying Car before Coverage: It`s best to compare insurance pricing before purchasing a car. Remember insurance is based (some part of it) on your car`s price, repair expenses, safety record and chances of theft. Therefore, even among similar cars of same price, the premiums can be different.


Benefits of Car Insurance

Car insurance Policy consists of far more elements than just covering a vehicle. A policy also includes added benefits which makes policyholder`s experience as convenient as possible. Despite that, you can enjoy the following benefits with a policy:

Accident Forgiveness: if you are involved in vehicular accident and were violation free for 5 years. Your premium will not be raised just because of the first accident. If you are qualified, you will even receive free benefits. In order to achieve this, positive and healthy credit insurance is must or else you won`t be rewarded.

Lifetime Repair: If car involved in accident is covered under policy. The Policyholder can have it fixed and repaired at one of company approved work shop. This way, the repairs will be guaranteed as long as you own the car or another accident. Company approved shops provide with best services. Therefore, you should only acquire their services.

Roadside Help: In case your car breaks down, don`t worry you won`t be left stranded. No matter what the problem is, from simple jump start to even towing your vehicle. Optional 24 hour Roadside help will get you moving once again. In addition, the insurance company will also take care of other arrangements (such as replacement car and repairs).

Easy Payment: Paying for bills is never made easier! It doesn’t matter if you are paying over phone, online or even from an app. These options are at your disposal. You can have your payments deducted automatically from checking and saving account, just pay by credit card or mail a check. Whatever you find comfortable.

After Hour Services: Do you have any query/question related to policy or billing. Even if you need a change of your policy. You can always contact customer service of insurer and ask about it. The insurance company representative will help you with almost anything related to policy and billing after business hours and on weekends.

Personal Belonging Cover: It`s possible only if you find a cheapest car insurance offering this benefit. Personal Belonging coverage pays a specific amount for event of damage or loss of personal belongings in car. This term is applicable if event was caused by fire, theft or accident. Making claim under Personal Belonging cover doesn’t affect no claim discount. However, it doesn`t cover the loss of your cellphone.

Cellphone Cover: Cellphone Cover is just like Personal Belonging Cover. The only difference is it pays a specific amount only for loss or damage to cell phone in car.

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