Affordable Car Insurance — Myth or Reality?

We all want to find the cheapest car insurance for our dream car without breaking the bank or losing substantial coverage. Insurance premiums can be high and stressful. You would think that the lower the coverage the better for you. But that's just not the case. 

Car insurance is a necessary expense. But if you are on a tight budget, looking for cheap insurance might be a good idea but in reality, you would still need a policy that's going to give you a good return on your investment. 

Finding affordable car insurance might leave you at your wits' end, but if you are patient enough, you will find affordable car insurance for yourself. 

How Insurance Rates are Determined

Car insurance companies use an algorithm which changes every year to determine car insurance rates. This algorithm uses various factors from your personal information, some that you can control while some are beyond your control like an insurance increase after an accident. 

The insurance rates constantly fluctuate and this can be difficult to determine which insurance provider will give you the best price. 

To get affordable car insurance, gather multiple car insurance quotes from different providers to determine how much you can expect to pay. You can also look at discounts that companies offer, which could help you save even more money on your monthly premiums. 

How to Find Affordable Car Insurance

Here are some tips to get yourself affordable car insurance.

First, you should suspend coverage for any unused vehicles. Due to the enforced lockdowns of 2020, the usage of your car will most likely be close to non-existent. In that event, the best way forward is to suspend your insurance coverage temporarily. 

Check with your car insurance company before proceeding, as some insurance companies do not have the option of suspension. Suspending your policy for a short time may cause your premiums to go up when you renew your coverage. 

A better suggestion would be to suspend your liability and collision coverage but retain your comprehensive coverage in case the car gets stolen or damaged. Another option is to simply purchase pay-as-you-go insurance.

Look for Where You Can Save

If you buy all your policies from one insurance company, then you will always get a cheaper insurance premium. You can group homeowner's or renter's insurance with auto insurance and also add an umbrella policy, which protects you from liability beyond what your homeowner's or auto policy covers and is also referred to as excess liability insurance. 

Ask your insurance provider about possible discounts. Car insurance companies offer a range of discounts based on various factors. You should look in detail or ask your agent if you are eligible for any discounts like discounts for paperless transactions, good driving record, etc. 

An easy way to save is to increase your deductible. A deductible is the amount of money you agree to pay before your insurer will make any payment toward your own loss. The larger the deductible amount you agree to pay, the lower your insurance premiums will be. 

If you go for the higher deductible to save on premiums, consider keeping your deductible amount in a savings account for any unexpected costs that come up. 

Shop and Compare

One of the best ways to find yourself affordable car insurance is to shop around. Look at the various rates of different car insurance companies and get car insurance quotes. 

If you are unsure of what coverage you need or which provider you should compare, you can always contact an independent agent. Independent agents typically sell policies for five to eight insurance companies and so can choose from several options to determine what is best for you.