insurance

Drive for cheap auto insurance takes time

How to get cheap auto insurance

Everybody wants cheap auto insurance. But saving money on auto insurance isn't always as simple as finding the best deal. In fact, getting cheap auto insurance requires juggling multiple factors to get the most mileage out of your budget.

Understand what you're buying

Knowing the ABCs of auto insurance is the best way to find a deal because informed buyers can gauge their needs and properly compare multiple auto insurance quotes. There are six parts to a basic auto insurance policy: bodily injury, personal-property liability, personal-injury protection, uninsured motorist, collision and comprehensive. While components like bodily injury and personal-property liability are must-haves, other components like collision and comprehensive can drive up costs without much benefit. For example, drivers with older, less expensive cars might not need comprehensive and collision coverage, which reimburses the cost of repairing or replacing the car in the event of any kind of accident, theft or natural disaster.

If you need help understanding a policy, try working with an agent. If you want to know how to find a savvy car insurance agent, ask your friends and look for someone with experience in underwriting and claims, not just sales.

Go online

Getting cheap auto insurance often means buying the policy online. Typically, drivers can save up to 10 percent on their premiums if they buy online because processing Internet applications costs less for providers. But before you buy online, remember that the Internet is also a great tool for comparing prices, so be sure to get auto insurance quotes online, too.

Be vigilant

While the price you pay often reflects your location, the type of car you drive and your driving record, there are some innocent ways to drive up car insurance costs. Certain types of tickets, such as those for not wearing a seat belt or texting while driving, will drive up your costs. But even seemingly unrelated factors like a low credit score, missing a credit card payment or paying your premium in installments will make it harder to find cheap auto insurance.

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