3 Things To Keep In Mind When Shopping For Cheaper Car Insurance Rates

Insurance Blog

If you drive a car, you have to get car insurance. Not only does car insurance help protect other people that you may get involved in an accident with, but it can also protect yourself. As with just about anything in life, the amount you pay each month for car insurance depends on a lot of variables. As such, there are ways you can help cut costs and get cheaper car insurance rates. Here are three things to keep in mind when shopping for a cheaper car insurance policy.

1. You can reduce your coverage, but keep your state's minimum coverage requirements in mind.

One of the most popular ways to cut costs and make your car insurance policy cheaper is to reduce the amount of coverage you carry on your policy. Of course, you need to be sure that you don't go below the minimum car insurance coverage required by the state you live in - which, of course, varies from state to state.

For instance, if you live in Tennessee, you need to carry liability coverage of 25/50/15. That means your policy will pay out up to $25,000 for an individual you injure in an accident, with a maximum payout of $50,000 per accident. The policy will also pay $15,000 for property damage (i.e. damage to the other person's car). So, drivers in Tennessee can only reduce their coverage to get a cheaper car insurance rates if their policies have liability coverage over 25/50/15. 

2. Consider bundling your car insurance policy with other insurance policies.

Many people who have car insurance also have other types of insurance policies. As a matter of fact, most insurance companies that have car insurance policies also have other types of insurance, such as homeowner's or renter's insurance. If you bundle your car insurance with your other insurance policies, you will likely find that you can save money.

The specific amount of money you can save by bundling all of your insurance policies with one company will vary. Some may save a lot, while others may not save much at all. It just depends on factors like the state you live in, your driving habits, the value of your home, etc. In order to find out how much you can save by bundling, you will need to contact your insurance company.

3. If you have a car loan, you could have car insurance requirements beyond the state minimum.

In most cases, you have to get a loan in order to buy a car. After all, not many people have several thousand dollars they can spare at one time to buy a car. If you have a car loan payment, you likely have car insurance coverage requirements that are beyond what you state imposes. 

Most car loan lenders will require full coverage car insurance. This means that you will have the liability coverage that they require (if it's more than the state minimum), as well as coverage for your own vehicle when involved in an accident, coverage for damage that doesn't occur in an accident, and coverage in the event that your car is stolen.

These requirements are put in place to protect the lender, as well as yourself. The lender wants to be sure they get their money back no matter what, and you need to be covered so you don't end up paying for a car that you no longer have.

So, whenever you shop around for that cheaper car insurance rate, keep in mind the coverage requirements your lender has on your car loan. Failing to meet those requirements can give the lender a legal right to repossess your car. Contact a company like Griffin-Rahn Insurance Agency Inc for more information.


1 November 2015

Auto Insurance:  Even High Risk Drivers Need It

About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.