Finding Affordable Full Coverage: Unlocking The Secrets To Cheap Auto Insurance

How Can I Get Cheap Full Coverage Auto Insurance?

Full coverage auto insurance is a combination of liability, collision, and comprehensive insurance. It is required for drivers of leased or financed vehicles, but it is also a good idea for vehicles worth more than $4,000.

The best way to find affordable full coverage auto insurance is to compare quotes from multiple carriers. While Travelers, USAA, and State Farm are among the cheapest according to rate analyses, many other companies offer affordable full coverage.

The average cost of full coverage auto insurance is $133 per month, but this can vary depending on factors such as your driving history, age, credit score, home address, and insurance provider.

Compare quotes from multiple insurers

Comparing quotes from multiple insurers is the best way to get cheaper insurance. The average comparison shopper saves $60 per month on their car insurance by comparing quotes, which amounts to more than $700 a year.

Prices of consumer goods have been on the rise since the pandemic, and while inflation has slowed down in 2024, auto insurance rates continue to skyrocket. In 2023, auto insurance rates increased by nearly 25%. However, comparing quotes from multiple insurers can help you find better deals and less expensive premiums.

When comparing quotes, it is important to have certain information on hand, such as your driver's license number, driving history, vehicle identification number (VIN), and current coverage details. It is also crucial to compare quotes for the same coverage amounts to ensure an equitable comparison.

By comparing quotes from multiple insurers, you can find the best price and coverage for your needs. This process allows you to evaluate different companies' rates, coverage options, and discounts. Additionally, using insurance comparison websites can make the process faster and easier, as you only need to provide your information once.

It is recommended to compare quotes from at least three companies, but the more insurers you gather quotes from, the greater your chances of finding the cheapest full coverage auto insurance for your unique profile.

Ask for discounts

Asking for discounts is a great way to save money on your auto insurance. While insurance companies will often apply discounts based on the information you give them, it's always worth asking if there are any additional discounts you may be eligible for. Here are some tips and common discounts to ask about:

Know the Available Discounts

Firstly, make sure you know which discounts you qualify for. Common car insurance discounts include those for being a good student, having a home policy with the same company, paying the bill upfront, being married, taking a driver training course, having a short commute, owning your home, using electronic funds transfer, having a low annual mileage, and more.

Shop Around Yearly

Discounts vary widely by company and state, so it's important to compare quotes whenever you renew your policy or switch insurers. Don't just focus on the discounts, though; look at the final price, as a company with fewer discounts may still offer a lower overall rate.

Don't Spend Money to Get Discounts

Be cautious about spending money on add-ons to obtain richer discounts. For example, while you may earn a discount for installing anti-theft devices, some of these devices can be expensive and may only save you a small amount on your insurance.

Make Sure You Get What You Need

When comparing quotes, don't just focus on the bottom line. It's important to understand what coverage you have and what your potential out-of-pocket expenses will be in the event of a loss. Make sure you have adequate liability coverage, not just the minimum state requirement.

Compare Quotes Carefully

Gather the information you need to get accurate quotes, including driver and vehicle details. Get quotes from multiple companies and organize them by cost, with the least expensive at the top. Read through the quotes, comparing coverage, exclusions, and deductibles with your existing policy. Check each company's reputation and call their centres to ask about any additional discounts they offer.

Common Discounts to Ask About

• Good student discount: Full-time students who maintain good grades (usually a B average) may qualify for a discount.
• Student away at school discount: If your child is away at school and doesn't have regular access to a vehicle, you may be able to get a discount.
• Home and auto bundle discount: You can often get a significant discount (up to 25%) by bundling your auto insurance with a homeowners, renters, condo, or other insurance policy from the same company.
• Multi-car discount: Insuring more than one car with the same insurance company can often result in a discount.
• Defensive driving course discount: Taking an approved defensive driving course may make you eligible for a discount, although this may be limited to certain age groups.
• Early signing/renewal discount: Some companies offer a discount if you sign up for a policy or renew it before your current policy expires.
• Low mileage discount: If you drive less than the average number of miles per year, you may be eligible for a low mileage discount.
• Occupation discount: Certain occupations may qualify for discounts. For example, teachers or military personnel may be offered special discounts.
• Anti-theft device discount: Installing anti-theft devices, such as alarms or tracking systems, may result in a discount on your comprehensive coverage.
• Electronic billing/paperless discount: Switching to paperless billing and electronic funds transfer may earn you a small discount.

Cash in on major life changes

Life changes such as getting married, moving, or having a child can translate to cheaper car insurance. Shopping for quotes after a major life change can help you find cheaper coverage.

For example, many companies offer a lower rate for married couples or domestic partners. If you've recently tied the knot, it's worth comparing quotes to see if you can get a better deal. Similarly, if you've moved from the city to the suburbs, you may be in an area with lower accident and crime rates, which could result in cheaper insurance. Even if you've moved to a more expensive area for car insurance, shopping around can still help you get cheaper coverage.

Other life changes that could impact your insurance rates include getting a new job, retiring, or adding a teen driver to your policy. It's always worth comparing quotes from multiple insurers to see if you can get a better deal after a major life change.

Raise your deductible

Raising your deductible is a great way to save money on your auto insurance. A deductible is the amount you have to pay out-of-pocket before your insurance coverage kicks in. Typically, you can choose a deductible of $250, $500, or $1,000, but amounts can go as high as $2,500. The higher your deductible, the more you pay out of pocket before insurance pays for a covered claim. The upside is that, by raising your deductible, you’ll lower your premium. Just make sure you have enough money set aside to cover the higher deductible if you ever file a claim.

According to Elin Nozewski of Jerry, a car insurance savings app, increasing your deductible from $500 to $1,000 may lower your car insurance rate by 10%, although the exact savings will depend on various factors – including your carrier, location, and driving record. Deece Catanzaro of Wallace & Turner Insurance says that raising your deductible from $500 to $1,000 can result in an average savings of approximately $188 per year on comprehensive and collision coverage collectively.

For example, let’s say a tree falls on your car during a storm. You would need an auto policy with comprehensive insurance to cover the repair costs. If your deductible is $1,000 but the fallen tree caused $5,000 worth of damage to your car, you’ll pay the $1,000 deductible and your insurance will cover the rest. Without full coverage car insurance, you’d be responsible for the full $5,000.

If you’re looking to save money by getting the cheapest possible car insurance, raising your deductible is one of the best things you can do.

Shop for quotes after your driving record improves

Shopping for quotes after your driving record improves is one of the best ways to get cheap full-coverage auto insurance. It is important to note that auto insurance quotes are free and that prices can vary by hundreds of dollars among companies, so it is worth taking the time to shop around.

When shopping for quotes, it is important to have an idea of what kinds of auto insurance you want. Here are the main coverage types:

• Liability insurance: This is required in most states and is the foundation of auto insurance policies. Liability coverage pays others for accidents you cause, including injuries and property damage. Note that liability insurance does not cover any damage to your own car.
• Collision insurance: This pays for damage to your car if you hit something, such as a pole or tree.
• Comprehensive insurance: This pays out if your car is stolen. It also covers damage to your car if you hit an animal or if you have damage from floods, fires, hail, vandalism, or falling objects (such as a tree branch).
• Uninsured motorist (UM) insurance: If you're injured by a driver who has no liability insurance, this coverage pays medical bills. In some states, you can also buy a version that covers car damage from an uninsured motorist.
• Personal injury protection (PIP) and medical payments (MedPay) coverage: These pay for injuries to you and your passengers, no matter who was at fault. Some states require PIP, where it is sometimes called "no-fault insurance."
• Rental reimbursement insurance: If your car is in the shop due to an accident covered by your policy, this helps pay for a rental car. It typically has a daily and total maximum that it will pay.

When shopping for quotes, it is also important to have an idea of what levels of coverage you want. The minimum you must buy will be decided by your state and may include liability insurance, uninsured motorist coverage, and personal injury protection (called PIP or no-fault). You may want higher coverage levels for each than what's required.

• $250,000 per person/ $500,000 per accident bodily injury liability
• $100,000 property damage liability
• $250,000 per person/ $500,000 per accident uninsured/underinsured motorist

You may have also heard the term "full coverage car insurance." This generally refers to a policy that has liability, collision, and comprehensive coverage. That gives you insurance for damage and injuries you cause others (liability) and damage to your own car and theft (collision and comprehensive).

When shopping for quotes, it is also helpful to keep in mind that rates can vary quite a bit when you compare car insurance because insurance companies all have their own way of calculating prices. Factors that are generally used in auto insurance quotes include:

• The drivers: Age and driving experience affect quotes. So do moving violations such as speeding tickets. This includes all the licensed drivers in your household.
• Past claims and accidents: Having caused accidents and made claims will usually mean higher rates.
• How the vehicle is used and where it's parked: Do you use the vehicle for personal or business reasons? Where is it parked at night? These typically affect car insurance quotes.
• Credit: Poor credit can mean higher auto insurance rates. The insurance industry correlates poor credit to a higher chance that a driver will make a claim. This practice is banned in California, Hawaii, and Massachusetts.
• The vehicle: Insurers often use data on past claims on a vehicle like yours to calculate car insurance quotes. If other drivers of your model have made a lot of claims, or the vehicle is expensive to repair, that can be reflected in a car insurance quote.

Frequently asked questions