Cheap Auto Insurance

Reader’s Question:

Getting the cheapest auto insurance policy with sufficient coverage is the hardest thing to do! And right now, with the current economic situation of the country? My only hope are discounts. Which discounts can I get?

Jersey

Anchorage, AK

You know, I agree with you. The cheapest auto insurance policy may not really mean that you would be saving money. If it does not have sufficient coverage, you would just be wasting money as time passes by. A cheap but insufficient auto insurance policy is just the same as a weak umbrella. It gets torn apart real easily, and when it does, be ready to get wet.

So, the idea is to get an auto insurance policy for a relatively reasonable price, and then try to lower the cost by availing of every discount available. But what are these discounts?

There are three types of discounts that auto insurance companies offer: those that are related to the policy, those that are related to the vehicle and those that are related to the driver.

Policy-related discounts include bundling, early shopping or renewal discounts, payment discounts and deductibles. Bundling consists of you applying for inclusion of multiple drivers, multiple vehicles and multiple policies. Early shopping or renewal discounts are given when you shop way before your renewal date, but just be careful because you might find a lower price in another company. Payment discounts may be given when you do your payment via electronic funds transfer. Lastly, deductibles is not really a discount but is the amount that you are willing to pay yourself in the event of an accident, so of course, the higher the deductibles, the lower the premium.

Next, vehicle-related discounts have something to do with your car type and its safety and security. Older cars are less expensive to insure than newer cars, and safety feature translate to fewer medical bills in the event of an accident.

Last are the driver discounts. Discounts are given to good students, senior citizens, members of the military, female drivers, people who do not use their cars frequently, people who are affiliated to some specific affiliations, those that have finished driving courses and those with clean driving record and credit history.

So, having said all of that, I hope you find the cheapest auto insurance through the use of discounts that would best fit you.