Searching for cheap auto insurance

Cheap Auto Insurance

While buying auto insurance, everyone tries to get cheap auto insurance quotes with good coverage. Getting a cheap auto insurance plan may be difficult but not outright impossible. If you have a clean driving record, you have a fair chance of getting the best rates. If a company turns you down, don't give up. Keep shopping. Different companies have different criteria for accepting drivers for coverage.

These shopping tips can help ease your shopping hassles.

Make sure your coverage fits your needs

• Don't buy more coverage than you need. For instance, if your car is several years old and paid for, consider dropping collision and comprehensive coverage.



• Compare the cost of your annual premium against your car's Blue Book value, minus your deductible.



• You may not need personal injury protection (PIP) or medical payments coverage if you have health and disability insurance. Remember, though, that PIP and medical payments cover other people if they are injured while in your car.



• You may be able to drop some coverages and lower your premium. For instance, if you belong to an automobile club, you probably already have towing and labor coverage through the auto club and don't need it in your policy.

Lowering your premium by increasing your deductible

• You can also lower your auto premiums by raising your deductible. Be aware, however, that if you raise your deductible, you'll have to pay more out of pocket for repairs before your policy pays.

Understand what you're paying for

• Insurance companies offer installment plans. These allow you to pay your premiums over a period of time instead of all at once. Agents and insurers often use premium finance companies, which lend money at high interest rates to pay insurance premiums. Look for companies that offer their own installment plans.



• An insurance agent must tell you if your installment plan is with a premium finance company and tell you the premium finance company's name.

Ask the agent:

• Who will provide my installment plan - The insurance company or a premium finance company? If it is a premium finance company, what is the interest rate?



• How much is the down payment?



• How much is my monthly payment?



• How many payments do I make?



• How much is my total payment (annual or six-month premium plus interest)?