Car Insurance

Cheap Car Insurance Guide to Help You Understand Pricing, Quotes, Types of Coverage, & More

Nobody wants to spend more time than necessary shopping for cheap car insurance. Still, it’s not always easy to get – especially if your driving record is less than perfect, or you have an expensive vehicle. There are dozens of auto insurance companies, both large and small, trying to get you as a customer. Some will even offer discounts and low introductory rates. Still, you must always read the terms very carefully before ever agreeing to anything.

What, exactly, is a quote? An online car insurance quote is simply an estimate of what you might expect to pay for a particular company’s type of coverage. It depends on the vehicle, your location, the amount of protection you need, the number of people on the policy, your credit report, and so forth.

Since it’s an estimate, you might end up paying slightly more or slightly less than the quote, depending on your exact circumstances. Market fluctuations might play a role, as well. Most experts recommend that you try to get multiple quotes from at least three or four insurance carriers for an idea of what you might be paying.

Cheap Car Insurance Factors

In general, here are the factors that go into insurance prices:

  • You (demographics – age)
  • Your driving record / how you drive
  • Insurance history/claims history
  • What you drive
  • Location

You can be sure that insurance companies will probably take a look at your credit history too. If you are considered a “high-risk” driver, it will be harder for you to get cheap car insurance. If you are a lower-risk driver, it will be easier to find affordable rates and discounts.

There are situations where your specific zip code may or may not affect the price. Not only do rates vary from state to state, but they sometimes do from zip code to zip code.

Think about how much protection you want for the car. Do you wish to pay for the bare minimum in your area? How much deductible are you comfortable with paying? Or is your vehicle older and not worth spending much money repairing? What about comprehensive and collision insurance?

Make sure you understand all of the different coverage you can get for your car. Then decide which ones will be worth paying for, and whether or not you’d instead take your chance with deductibles. Also, look for discounts wherever you can to help you get cheap car insurance. Start with Esurance, as it offers good service, fast quotes, and discounts.

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