Each car insurance company has its own way of setting rates. Learn how to choose the best car insurance company to get the cheapest rate.

Cheap Car Insurance Companies – What to Look For

Everyone wants to get the best rate possible when buying car insurance. There are plenty of really cheap auto insurance companies online, but you also want to make sure you are getting the right coverage. Cheap car insurance doesn’t matter if it turns out you aren’t adequately covered in the case of an accident. You want to find the best cheap car insurance companies for your car and driving needs.

Cheap Online Car Insurance Companies

The easiest way to choose between cheap online car insurance companies is by comparing quotes. You start out by receiving quotes from at least three insurance companies so that you can arrive at a ballpark figure. Generally, these cheap car insurance companies’ quotes are in the same price range. If one quote is much higher or lower than another, look into why there is such a difference.

Keep in mind that no one insurance company is going to offer the best rates in all categories. While much also depends on state regulations, it’s crucial to understand just how car insurance companies go about setting their rates, and why they differ.

Setting Rates

Car insurance companies don’t uniformly set their rates. While the aspects affecting driver rates are similar – think driver history, credit score, age, and gender – one company may value one item on this list differently than another. For example, one company may attribute a higher percentage for someone with a recent driving violation, while another company does not.

Credit Scores

Why does the insurance company place, value on credit scores Boost your credit score, and you can usually qualify for better rates on loans, plus score lower insurance premiums? In fact, a better credit score can sometimes save you hundreds of dollars in insurance annually. You can improve your credit score by making sure to pay all of your bills on time and paying down your debt. Once you’ve raised your credit score, ask your insurance company about lowering your rates.

New Drivers

New drivers will also pay more because they have little driving experience. As you gain more experience behind the wheel, (and prove yourself by not getting citations or getting into accidents), you should see those rates coming down.

Driving Distances

How much you’ll pay depends on how much you use your car. Expect to pay more if you commute a fair distance to work every day. That makes sense, as the more time a driver spends on the road, the higher the odds of getting into an accident.

If you don’t use your car that often, you are what insurance companies consider a “pleasure” driver. You will potentially pay less than someone who drives their vehicle more frequently if you fall into this category.

Car Make, Model & Year

Your car type factors into your insurance rates. While small cars usually cost less to insure than large automobiles, insurers also look at the vehicle’s safety record, how often this model is stolen, and corresponding repair costs. A small car is not going to cause as much damage in an accident as a larger one, and that is something insurance companies take into consideration.  Cheap car insurance companies online will give you a better deal if your car model’s track record is good, and your vehicle has certain safety features.

Couple shops for cheap car insurance companies while making family budget

Look for Discounts at Cheap Auto Insurance Companies

You can get a cheaper car insurance rate by taking advantage of the various discounts offered by insurance companies. These discounts might include covering multiple cars on your policy, owning a vehicle equipped with anti-theft devices, or bundling your car and home insurance. If you belong to certain professional organizations, you may prove eligible for a discount, too. The ability to pay for your annual or six-month premium at one time should land you a discount as well. If you have a clean driving history, that may also provide you with a discount. That’s also true for student drivers with good grades.

Other Ways to Save

Cheap car insurance companies may offer other savings opportunities. If you must carry collision and comprehensive insurance on your car – and if your car is leased or you still owe payments, that’s a requirement – opt for a higher deductible. You will pay more if you are in an accident for repairs, but less in overall insurance costs. There is no option for higher deductibles with liability insurance.

Your Profile

As far as car insurance companies are concerned, every driver has a unique profile. Change that profile, for good or bad, and you’ll see a change in premiums. Cheap car insurance companies don’t necessarily consider your profile in exactly the same way.

When you’re involved in a car crash, your insurance rates are going to rise. However, not every car insurance company will raise your premium the same way. That’s why you can compare cheap car insurance companies and see how they view your accident, rate-wise. Odds are you may find substantial differences in how much more you’ll have to pay after an accident, depending on the car insurance company. 

Your Needs

The cheapest car insurance depends on your needs. Every state requires drivers to carry a minimum amount of liability insurance. You might find a cheap car insurance company online to sell you that minimal amount of insurance at a good rate, but the truth is that you really should buy more than the minimum to protect yourself. Look for the car insurance company offering the best prices for more than the minimum amount of coverage.

If you are the at-fault driver in a bad accident, just carrying the minimum amount of insurance will not cover the medical bills, lost wages, and vehicle damage the other driver suffered. Without adequate insurance, you are on the hook personally for the difference. If you have personal assets, such as a house, you could lose it.

High-Risk Drivers

If you fall into the high-risk driver category, that doesn’t mean you can’t find cheap car insurance companies online. You will pay more than a driver who qualifies for standard insurance. There are cheap car insurance companies online that will not cover drivers in the high-risk category, but there are others specializing in insuring such drivers.

Company History

How to determine the best cheap car insurance company? Look for a company with a history of providing cheap car insurance for its customers. At The General®, we have one of the best track records out there. For almost 60 years, we’ve provided cheap car insurance along with flexible payment options without asking our customers to sacrifice on great service!

You don’t want to place your insurance needs with a company no one has ever heard of and hasn’t been around for very long. That’s true, even if it is one of the really cheap auto insurance companies online. You are not saving money if it turns out the insurance company doesn’t have your back when you need it! Insurance is all about trust. In return for your monthly payment, the insurance company is supposed to be there for you in case of an accident. You don’t want to find out after the fact that an insurance company has a reputation for not paying claims. Doing some basic research on the company’s background is vital before you buy a policy.

How The General® Can Help

At The General®, we know how important driving is to our customers. If they don’t have insurance, they can’t drive. That means they may not have the ability to get to and from work or school, or they can’t take care of their families, and they lose the freedom and independence that comes from being on the road! That’s just one reason we make it our mission to provide affordable car insurance to all types of drivers, specializing in helping those who rely on it the most!

If you’ve been arrested for a DUI or other serious traffic violations, been the at-fault driver in an accident, been caught driving without a license or insurance, or experienced an insurance lapse, we’ll still consider you for coverage. Not only that – but if you’re insured with The General®, you’ll still receive our affordable rates, our prime customer service, and the choice of paying by debit card, credit card, or cash, AND you can take advantage of our award-winning mobile app to conduct all of your car insurance business!