What Is The Cheapest Kind Of Car Insurance?

By Sharon Gibson Posted in Car Insurance News

Finding The Cheapest Auto Insurance Policy

Finding the cheapest kind of car insurance can be a complicated process since policy premiums and requirements vary from state to state. Maine holds the dubious distinction of having the cheapest car insurance of all the fifty states but unless you live in Maine you can’t purchase car insurance there. The law requires a minimum of liability insurance, which covers damages to the other car and driver if you are at fault in an accident.

Liability Insurance

Liability insurance can cost as little as $50 per month depending on several factors. There are two things that can affect how much you pay for liability insurance. First is your age. The younger you are, the more you will pay in insurance premiums. According to the National Highway Transportation Safety Administration teens account for 16% of all car accidents and fatal car accidents are the number one cause of death among 15-20 year olds. So if you are under twenty then “cheap” car insurance is a relative term. Being a safe driver, following the restriction on your driver’s license and even good grades can reduce the cost of your insurance policy. Some states require teen drivers to carry comprehensive coverage, not just a liability policy.

Other Factors

Another major factor in how much you will pay for car insurance is your driving record. If you have has a lot of tickets, violations and have had several car accidents then you are a riskier driver to insure since the likelihood of you getting into an accident is higher. Therefore, it will cost you more in insurance premiums. Depending on how bad your driving record is, some insurance companies will require you to purchase more then just liability insurance and then charge you a very high premium.

Combining Your Insurance Policy

Finding affordable car insurance is certainly possible with the right amount of searching. Combining insurance policies can reduce the overall cost of your car insurance policy. For example, if you have homeowner’s insurance you can insure your home and car through the same company and receive a discount. Insuring recreational vehicles, motorcycles, multiple vehicles and even watercraft through the same company will also reduce the price of all the policies.

Related posts:

  1. What Is The Average Price Of Car Insurance?
  2. What Is The Cheapest Car Insurance For A Young Driver?
  3. What’s A Good Price For Student Car Insurance?
  4. Short Study Guide To Getting The Best Chicago Auto Insurance Quotes
  5. What Factors Affect My Car Insurance Policy Or Premium Rate?

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