Each car insurance company has its own way of setting rates. Learn how to find a discount auto insurance company near you to get an affordable policy. 

Cheap Car Insurance Companies: What to Look For

Everyone wants to get the best rate possible when buying insurance. There are plenty of discount home and auto insurance companies online, but you want to make sure they offer quality coverage. You won’t save money if it turns out you aren’t adequately covered in the event of an accident. Read on to learn how to find the best cheap car insurance company for your car and driving needs. 

Cheap Online Car Insurance Companies

The easiest way to choose between car insurance companies is by comparing quotes. You can start by receiving quotes from at least three insurance companies to arrive at a ballpark figure. 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 a lot 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 similarthink driver history, credit score, age, and genderone company may value some factors on this list differently than another. For example, one company might charge more for someone with a recent driving violation, while another company won’t. 

Credit Scores

Much like banks, most insurance companies place some 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 on insurance annually. You can improve your credit score by making sure to pay all of your bills on time and by 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 avoiding violations, you should see those rates come down. 

Driving Distances

How much you’ll pay depends on how often 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 its 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. It will be easier to find affordable auto insurance if your car’s model has a good track record and certain safety features. 

Find Cheap Auto Insurance by Looking for Discounts

You can get a cheaper car insurance rate by taking advantage of the various discounts offered by insurance companies. You might be eligible for a discount if you cover multiple cars on your policy, own a vehicle equipped with anti-theft devices, bundle your home and auto insurance, maintain a clean record, get good grades, pay your premium upfront, or belong to certain professional organizations. 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. If your profile changes, you’ll see a change in your premiums. Not every car insurance company considers your profile in the same way.  

If 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 factor in your accident when creating your rate. 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. State requirements vary, but 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 sometimes you need 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. 

High-Risk Drivers

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

Company History

Look for a company with a history of providing affordable car insurance to 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. 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 require SR-22 insurance due to a DUI or other serious traffic violation, 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, prime customer service, flexible payment options, AND our award-winning mobile app to conduct all of your car insurance business!