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Best Ways to Get Budget Car Insurance
22 Nov 2017

7 Tips to Get Budget Car Insurance

In nearly every state in America, car insurance is legally required in order for you to operate your automobile. If you’re going to own an automobile, you’re going to also need to own auto insurance.

The problem is that, for some (and perhaps even you), car insurance is a little costly. In many cases, it’s difficult to fit into a set monthly budget.

So, what’s the solution? Finding the most affordable auto insurance available.

How do you find this budget car insurance? By making use of these helpful tips!

1. Browse Local Insurers

When searching for budget car insurance, the goal is to leave no stone unturned. This means that you need to know the costs for auto insurance at every single insurance company you come across.

It’s easy to take a look at Geico, State Farm, Progressive, and the other big players in the industry, and then make a selection out of those. But you’re not looking for easy. You’re looking for cheap.

While there’s no guarantee that your local insurers will have less expensive insurance policies, it would be foolish to not, at the very least, check. Not to mention, local insurers can often provide much better customer service than can corporate insurers.

2. Be on the Lookout for Discounts

When it comes to insurance, there are potential discounts waiting around every corner. Keeping your eyes open for them can land you an auto insurance policy which saves you hundreds, or (in rare cases) thousands of dollars.

One thing you can often do to receive a discount on your auto insurance is to buy it through the same company through which you buy your other types of insurance. Bundling your home insurance, life insurance, and car insurance, and receiving them from a single insurer will often help to knock down your overall costs.

Some of the common discounts you’ll come across include discounts for having a clean driving record or agreeing to receive your bills online, to name just a few. It’s wise, however, to ask the insurer yourself whether or not there are any discounts available.

3. Buy a Car That Doesn’t Require Expensive Insurance

The fact of the matter is that not all automobiles are insured in the same ways. There are some automobiles which are hit with fairly expensive monthly premiums while others have very tame monthly premiums in comparison.

If saving money is your number one priority, it might be wise to shop for a car that doesn’t require outlandish monthly insurance premiums.

In a general sense, sports cars are more costly to insure. The cheapest cars to insure are usually the types which serve no legitimate purpose other than to get you where you need to go (ie. vans, SUVs, 4-cylinder cars).

Need some help finding the cheapest cars to insure? This article should be useful for you.

4. Try Usage-based Insurance

Only use your vehicle for short trips to and from work or school? If so, you might be well-served by a usage-based car insurance.

Usage-based insurance policies are policies in which you allow your insurer to track your car’s accumulated behavior. In return, you can receive various discounts.

These types of programs reward drivers who demonstrate responsibility and a limited amount of auto usage. You can typically find them through large insurers such as Progressive and State Farm.

It should be noted, however, that those who don’t earn rewards through the program can actually see an increase in costs. Be honest about and cognizant of your driving habits.

5. Build Good Credit

Just as with buying a house, or taking out a loan, your credit factors largely into your ability to secure budget insurance. The truth of the matter is that, without a good credit score, you’re probably not going to find auto insurance that is cheap.

You build and maintain your credit score by paying your bills in a timely manner. Creditors base your credit off of credit card bills, car payments, and any other loans which you may have out.

Paying these bills regularly can reduce your auto insurance costs by hundreds of dollars in a single year. So, if you’re in debt, you need to start paying off that debt as soon as possible. Letting it fester will only do more damage to your credit score and make it more difficult for you to secure budget car insurance.

6. Increase Your Deductible

Another option for lowering the price of your auto insurance is by accepting an increased deductible. Deductibles exist only with collision and comprehensive insurance, and will only be relevant if you do serious damage to your car.

Raising the deductible will put more of the responsibility on you than it will the insurance company, so policies with raised deductibles are typically cheaper.

The risk you take is having to pay completely out of pocket for serious damage to your car. However, if you can avoid serious damage, you can save some serious money.

If you live in a high-traffic area where car accidents are frequent, this might not be the best option for you. If you live in a low-traffic area, it’s usually worth the risk.

7. Trim Off Insurances That You Don’t Need

Car insurances that aren’t required are comprehensive and collision insurance. Whereas collision insurance takes effect in order to cover damages to your car after an accident, comprehensive insurance takes effect in order to cover damages from vandalism and the weather.

Unfortunately, these insurances will only pay out based on the age and value of your car.

If you’ve got an old automobile, you won’t get much benefit out of collision and comprehensive insurances. You might be better off by getting rid of them altogether and saving more money on budget car insurance.

Catch Up on Your Auto Insurance Payments

Behind on your auto insurance payments? Need to settle your balance so that you can move onto a budget car insurance? We here at Bonsai Finance can help you.

We provide personal loans in a simple 3-step process. You can have additional money in your hands by the end of the week.

Have any questions? Contact us!