Dirt Cheap Car Insurance
Finding Dirt Cheap Car Insurance Plans
Are you on a tight budget and in need of dirt cheap car insurance? Many drivers are seeking ways to reduce their car insurance expenses without compromising on coverage and protection. Fortunately, there are several steps you can take that will allow you to get dirt cheap auto insurance while ensuring you have sufficient coverage.
Key Points to Remember
- Comparison shopping, increasing your deductible, qualifying for discounts, and opting for paperless billing can help you get dirt cheap insurance.
- Crucial factors to consider when selecting an insurance package include coverage limits, exclusions, eligibility requirements based on age and location, and available discounts.
- Paying your annual premium upfront or automatically through online banking can yield additional cost savings.
How To Find Dirt Cheap Car Insurance
To find affordable coverage that suits your needs, begin by compare quotes from multiple companies online. This approach allows you to uncover the best rates available.
Raising your deductible can lead to lower monthly premiums. However, you should expect your out-of-pocket costs to be higher in the event of a claim. For instance, opting for a $1,000 deductible can result in approximately 10% savings on your overall premium cost.
Some auto insurers offer discounts based on factors such as good credit scores, academic achievement, military service, or even being a teacher. Strive to qualify for two or more discounts to secure a dirt cheap auto insurance policy.
Many companies provide discounted rates when customers choose paperless billing options over traditional billing methods, resulting in yearly savings.
Comparison Shopping For The Lowest Rates
Car insurance rates are determined based on a variety of factors, including your age, driving record, credit history, and the location where you live. By taking the time to comparison shop for the lowest rates available, consumers can save significant amounts of money. If you need dirt cheap car insurance, then you should review, at the minimum, ten quotes.
Start your search for dirt cheap auto insurance online, as some providers offer exclusive discounts not accessible through agents or brokers. There are some direct-to-consumer insurers like Esurance and 21st Century that have dirt cheap rates for eligible drivers.
When searching for dirt cheap insurance, compare rates from both national insurers like Progressive and regional companies like Erie Insurance. If you have a military connection or are a veteran, explore USAA Insurance, known for its very cheap rates with low deposits and exceptional customer service.
Increasing Your Deductible
Increasing the amount of your deductible is one example of a simple yet important step you can take to reduce your overall car insurance costs. A deductible is what you need to pay out-of-pocket before your insurer begins covering most of the expenses incurred from an insured event, such as an accident or vehicle theft.
While opting for a higher deductible means taking on more risk if something unfortunate happens, it can also lead to significant savings in premium costs. Many companies offer discounts for customers who choose higher deductibles, ranging from 5% off up to 20%. Those savings can add up over time and put thousands back in your pocket.
Qualifying For Discounts
Car insurers offer a range of discounts that can reduce your insurance premiums a lot. These include discounts for good driving records, vehicle age, policyholder affiliations, defensive driving courses, and more. Let’s take a look at discounts that can help you save a lot of money on your auto insurance premium:
| Type of Discount | Description |
|---|---|
| Good driving record discount | Insurers offer up to 25% off on auto insurance for drivers with a good driving record. If you get a ticket go to traffic school so it stays off your record |
| Vehicle age discount | Drivers who own cars that are less than 3 years old qualify for a discount due to the lower risk involved in insuring newer models. |
| Policyholder affiliation discount | Many insurers offer discounts for members of alumni or military groups as well as other affiliations. |
| Defensive Driving Courses discount | Taking an approved defensive driving course can earn you discounts of up to 5%. |
| Vehicle Discounts | Less expensive vehicles typically have lower insurance premiums due to their limited value and repair costs. |
| Insurance Policy Discounts | Choosing certain types of coverage may earn you an additional discount. |
Opting For Paperless Billing
When it comes to dirt cheap car insurance, one popular money-saving tip is opting for paperless billing. This option can provide drivers with significant discounts on their premiums through digital billing methods.
Automatically billing insurers online also means that payments are never late. It’s estimated that going paperless could save a driver around 5%, which makes this option totally worth it.
For the insurer, setting up automatic paperless billing is a big plus. There are no missed payments due to the automated withdrawal of funds from bank accounts or credit cards. Many companies offer lower rates as an incentive for customers who choose these options. Be sure to ask your provider about every discount that is available, which will help you get a dirt cheap car insurance policy.
Consider Your Personal Needs And Budget Before Choosing A Policy
Choosing the right car insurance policy can seem like a daunting task. It is important to weigh all of your options carefully and assess your personal needs and budget before choosing an insurance plan that fits your lifestyle and driving habits.
Factors such as the value of your vehicle, age eligibility requirements, location-based rates, miles driven annually, and policies specific to each car model should be taken into consideration when looking for affordable coverage.
Comprehensive coverage is designed to protect you from personal liabilities resulting from accidents or thefts, while liability coverage protects other parties involved in an accident.
Young adults typically pay higher premiums because they statistically tend to get more tickets and drive faster than older people. The good news is there are several providers offering affordable, budget-friendly policies specifically aimed at young drivers. However, it’s really tough for drivers under 25 to qualify for dirt cheap car insurance.
Risks Of Dirt Cheap Auto Insurance
When it comes to auto insurance, the adage “you get what you pay for” often rings true. Dirt cheap car insurance may seem like a budget-friendly option at first glance, but it can carry significant risks that might not be immediately apparent. Understanding these risks is essential for any driver considering such an insurance policy.
Inadequate Protection
One of the most glaring risks of choosing the cheapest insurance option is the likelihood of inadequate coverage. These policies typically offer the bare minimum required by law, which may not be enough to cover the full cost of damages or injuries in the event of a serious accident.
High Out-of-Pocket Costs
While the monthly premiums are lower, dirt cheap insurance policies can end up costing more in the long run. High deductibles and limited coverage mean that in the event of a claim, the out-of-pocket expenses can be substantial. The initial savings on premiums could be easily offset by the costs incurred from just a single accident or theft.
Exclusions and Limitations
Economical insurance plans often come with a range of exclusions and limitations that can leave you unprotected in various situations. Common exclusions in these types of policies may include natural disasters, vandalism, and theft. Furthermore, they might not offer coverage for personal injuries or the loss of personal items from your vehicle.
Potential for Underinsurance
Underinsurance is a significant and often overlooked risk. It occurs when the policy coverage is insufficient to cover the costs of a claim, which can be financially devastating. Drivers with dirt cheap auto insurance are at a higher risk of finding themselves underinsured, especially as vehicle values and repair costs rise.
Lack of Additional Features
Affordable policies usually strip away benefits that can be incredibly valuable after an incident, such as roadside assistance, rental car coverage, and comprehensive coverage for damages not caused by a collision. These features can save time, money, and stress, and without them, drivers may find themselves facing inconveniences and additional expenses.
Companies That Offer Dirt Cheap Car Insurance
Several insurers offer very cheap car insurance under $50 a month, but you need to get quotes from as many companies as possible to see who has the best rate for the coverage you’re looking for. Here are a few of the best dirt cheap auto insurance providers:
- Progressive
- Esurance
- 21st Century
- USAA Insurance
- Geico
- Farmers
- Mercury
- Nationwide
- Liberty Mutual
- AAA Insurance
- Erie
- Metromile
- Root
Usage-Based Insurers Can Help You Get Dirt Cheap Car Insurance
In recent years, insurers like Metromile have entered the marketplace and offer rates based on the miles a person actually drives. If you drive less than 500 miles a month and are a safe driver, you can qualify for dirt cheap car insurance. In general, the less you drive, the less you will pay.
There are several insurers that currently offer some type of usage-based discounted programs including:
- Metromile
- AAA Drive
- Allstate Drivewise
- Geico DriveEasy
- Esurance DriveSense
- Farmers Signal
- The Hartford TrueLane
- Liberty Mutual RightTrack
- Mercury Go
- National General Low Mileage Program
- Nationwide SmartRide
With most usage-based programs, the premiums you will be charged depend on several factors, including how many miles you drive and how risky of a driver you are. Your driving speed and braking will be monitored in addition to other things. If you are a boring, safe driver, you can get dirt cheap car insurance with a usage-based insurance policy.
Final Thoughts About Dirt Cheap Auto Insurance
Finding dirt cheap car insurance is possible if you are a safe driver, buy the right policy and take advantage of multiple discounts. However, it’s important to search for the right balance between cost and coverage.
If you buy a dirt cheap “bare bones” policy, chances are you will not be adequately covered if you get into an accident. There are several factors to consider when choosing a policy, such as coverage limits, exclusions, payment options, and discounts.
Compare at least ten quotes that will increase your chances of finding a dirt cheap car insurance policy. Start comparing free online quotes. Enter your zip code and fill out an application in about five minutes. Get the dirt cheap rates you need today and save more.