All right, who among us doesn't like cheap car insurance? With gas prices on the rise, new cars becoming more and more expensive, and the overall cost of car ownership going up as well, any little bit we can save through car insurance is welcome relief. But when it comes to finding car insurance, low price isn't the only qualifier. In fact, it may not even be the most important qualifier. Drivers need to be careful to understand what it is they're purchasing in relation to what it is they need.
Low, Low Payments
The lion's share of insurance agencies who advertise cheap car insurance utilize a plan which requires a very low down payment and low monthly installments. For example, you may find an agency that offers a deal with a $49 down payment and just $89 per month, for a six-month policy. Over the life of that policy you've paid $582, plus a dollar or two per month in finance charges. In other words, you could be paying upwards of $600 for a "cheap" policy which ends up not really being cheap at all.
But if you were willing to put $60 or $70 away in a savings account every month, you would have enough to pay cash for your car insurance after several months. You could then shop around and find a policy closer to $350 or $400 for six months as opposed to $600. See the point? Sometimes the description "cheap car insurance" really is deceiving. If you'll take the time to do the math you just might find that the discount agency down the street is really not the best deal at all.
Coverage Details
When you're looking for cheap car insurance the other thing you have to pay attention to is what kind of coverage you are actually getting. Every state in the Union requires some sort of minimum liability coverage, whether provided through an insurance carrier or a self-insured scenario. Regardless, the lowest cost insurance policies are only going to cover most state's required minimums.
If you have a loan outstanding on your vehicle, you will most likely have to add collision and theft coverage as well. Both of those things will drive the cost up. Other things you might add to your policy can make it even more expensive; things like coverage for custom parts, full glass replacement, roadside assistance, and increased coverage for uninsured/underinsured drivers.
Your Driving Record
The last thing you need to keep in mind is that your driving record is the single greatest factor determining how much you pay for car insurance. Regardless of what the advertisements say, or the price you heard over the radio, cheap car insurance is not going to be so cheap if you have multiple speeding tickets, a history of accidents, or God forbid, a DUI/DWI. The best way for you to make sure you always get the lowest insurance rates is to behave yourself behind the wheel.
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