Low Car Insurance - Three Points to Consider

By Justin Scott

Saving money with low car insurance appeals to us especially now with a tough economy. Here are three things to remember when trying to lower your auto insurance costs.

1. Coverages. The coverages you get affect how much you pay for car insurance. Each state has mandatory minimum required coverages that you must get when buying insurance. These minimums are typically for bodily injury and property damage, though many states also require coverage for uninsured motorists and no-fault or Personal Injury Protection (PIP.) Check your state insurance department's Web site for the minimums required where you live.

This is important because, of course you'll need to satisfy the minimum requirements, but also those minimums may not be enough to give you the financial protection you need. For example, if your state's minimum requirement for bodily injury is $25,000 and you are at fault in an accident that injures a person and causes medical bills of $40,000, you will be required to pay the difference. For a few dollars more on your premium, it may be worth it for the extra peace of mind.

2. Rates. Rates are based on several different factors including age, sex, geography, type of vehicle and more. Each company sets their own rates and these can vary quite a bit from company to company. To find the lowest rate in your area, for your situation, you need to do some comparison quote shopping. It's advised to get at least three quotes from different companies.

You'll also want to provide the same information to each company about your desired coverages and deductibles in order to get the most accurate comparison.

3. Deductibles and discounts. There may be other ways to lower your car insurance costs. One way is to raise your deductibles. Deductibles for comprehensive and collision coverages are the amount you have to pay first before your insurance kicks in. Raising your deductible from $100 to $500, for example, could lower your premium quite a bit.

Also, make sure you're getting all of the discounts that you are eligible for. For example, having anti-lock brakes and anti-theft devices can often save you money. Ask your agent or company representative if you are not sure.

Find low car insurance quotes. Justin Scott is a free-lance insurance writer. He recommends the comparison site LowerYourInsurance.com for up to 5 free auto insurance quotes, plus more information about saving on car insurance. The site also includes a car insurance comparison worksheet.