There are millions of people looking for budget car insurance that provides the protections necessary to meet state requirements, but is also inexpensive enough to be very affordable. The good news is that there are several types of low cost car insurance policies that will effectively cover your vehicle without burning a hole in your pocket.
State Minimum Coverage
The backbone of budget insurance is only getting the amount required by law. In most states, the minimum amount of insurance necessary for your vehicle is liability and uninsured motorist. This means that if you cause an accident, your insurance will pay for the damages up to a certain point. However, this does not provide for any payments on repairs to your vehicle if you were at fault. In addition, only those who own their vehicle outright with no liens in place can purchase this type of insurance coverage.
Generally speaking, state minimum coverage is best suited for older vehicles that make collision or comprehensive coverage unsuitable.
This is one of the most common ways to save money is by getting a policy that has a higher deductible. The deductible is the amount you pay first before the insurance coverage kicks in to pay for the rest. While this means more money from you in case you are in an accident, the good news is that you pay considerably less for your car insurance. Just be sure to have the money available just in case the worst should occur.
Passing Driver’s Course
Almost all insurance companies have recognized driving courses that when passed will provide a significant discount on your coverage. The driving course generally takes part of the day and some of it may be done online in terms of passing an exam. However, the purpose of the course is to teach defensive driving techniques which make it less likely that you will be in an accident. Because you can lower the statistics of being involved in an accident by participating in such as course, the insurance company may offer a discount of 5% to 15%.
This type of discount helps younger, inexperienced drivers the most as they are more likely to be involved in accidents. Plus, the course you take may be recognized by different insurance companies which mean that you may only have to take it once.
No Deposit Car Insurance
The deposit on car insurance policies that you pay each month can be as much as 10% or more of the total policy itself. However, if you purchase no deposit car insurance you can put more money into your wallet. You will need to qualify for a no deposit policy with your good credit rating and past history of regular payments to an insurance company. However, for those that qualify no deposit coverage can save a considerable amount of money.
There are numerous ways to save on your car insurance, so be sure to carefully check out all policies to look for the savings that are present before making your final decision.