Cheap Car Insurance: Two Things You Can Do To Get The Cheapest Car Insurance Rates

Why Do You Need Car Insurance?

Car insurance is a mandatory law and If you do not have the proper car insurance you can be fined severely and even jailed. Car insurance policies can be very expensive and if you are not well informed you may find yourself paying for more insurance than you actually need.

When you are shopping for the cheapest car insurance policy, you should ask yourself two questions:

1. What is the minimal insurance that my state requires?
2. What discounts do I qualify for?

Mandatory Car Insurance: What is the minimum insurance required?

Each state has their own laws for what is required for insured drivers. It is your responsibility to to research and find out what your state requires.

Mandatory Car Insurance Coverage

• Liability Insurance: Liability insurance will not cover any of the injuries to the driver of your car or the passengers of your car when you are responsible for an accident but it will pay the other driver for damages or injuries incurred.
• Personal Injury Protection: Personal Injury Protection is also called "No Fault Coverage" because it will pay your medical expenses whether or not you are at fault.
• Uninsured and Underinsured Motorist Coverage: When you are covered by uninsured and underinsured coverage you will be covered if you are in an accident with someone who does not have adequate car insurance coverage.
• Medical Payments: Medical payment coverage will pay your medical expenses regardless of who is at fault.

After you have selected to get the bare minimal insurance policy of what your state requires, you may find that you still need additional car insurance coverage.

Additional Car Insurance Coverage

• Collision: When you have collision coverage you will be protected if your vehicle is damaged by a collision with another vehicle or object.
• Comprehensive: Comprehensive coverage will pay you for the loss or damage to your vehicle that may have occurred from a flood, fire, hail, vandalism or theft.
• Rental Reimbursement: Rental car reimbursement is good to have because it will cover you if your car is damaged and you need a rental car.
• Towing and Labor: Towing and labor is also good to have because if you are somewhere broke down, you can call and have someone to tow your car, unlock your car, bring you oil, gas and water.

Car Insurance Discounts: How much money can I save with car insurance discounts?

You would be surprised how many people are unaware of the discounts that they qualify for and are not using. You can save hundreds of dollars just by doing your research and finding out what discounts you qualify for.

10 Car Insurance Discounts

1. Defensive Driving Discounts-You car insurance company may offer you a discount if you have taken a defensive driving course.
   
2. Low Mileage Discounts- You may qualify for a low mileage discount if you car pool to work, take a bus or you do not use your car to travel long distances.
3. Go Paperless- Believe it or not, you may even qualify for a discount if you select to go paperless and pay your insurance bill on-line.
4. Alumni Discounts: Check to see if your college participates in a car insurance discount program.
5. Student Discounts-Some car insurance companies rewards high school students and college students who maintain a high average with a car insurance discount rate
6. Multi-policy Discount- Be sure to check and see if you qualify for a discount rate if you combine your home insurance and motorcycle insurance with your car insurance.
7. Increase your Deductible- You will save money if you increase your deductible to $500 or $1,000 dollars.
8. Drop Your Comprehensive Coverage- Evaluate your car insurance needs. If you have a car that is paid for and it is at least 10 years old, you may not need to continue to have comprehensive coverage.
9. Payments Discount: You should also check and see if your insurance company offers you a discount if you make one full payment instead of monthly installments.
10. Anti-lock and Airbags: Make sure you are receiving a discount for having a "safe car"

In order to get the cheapest insurance, you should evaluate your insurance needs and shop around annually. You may find that you can find an insurance company that will offer you a cheaper insurance policy for your needs.