Auto Insurance: What To Include For The Cheapest Rates

When looking for cheap car insurance, it's important to remember that the cheapest option may not always be the best. While a basic policy may save you money, it might not include all the types of coverage you need to protect yourself. It's also worth noting that customer service is a huge part of quality auto insurance, so choosing a cheaper company may mean sacrificing good customer support.

- USAA

- Erie

- Auto-Owners

- Nationwide

- Geico

- Progressive

- State Farm

- American Family

- Travelers

- Central Insurance

- Country Financial

- Liberty Mutual

- Allstate

- Farmers Insurance

- Mercury Insurance

- Root Insurance

- La Familia Auto Insurance

- GoAuto Insurance

- A-MAX Auto Insurance

- Fremont Insurance

- Acceptance Auto Insurance

- Elephant Auto Insurance

- Dairyland Insurance

- Mapfre Insurance

- Fred Loya Insurance

- Safety Insurance

- The General Insurance

- The Hartford Insurance

While these companies offer some of the lowest rates, the most affordable option for you will depend on your driver profile, location, and vehicle, so be sure to compare quotes from multiple providers to get the best deal.

Discounts and incentives

• Multi-Policy Discounts: You can save money by bundling your auto insurance with other types of insurance, such as homeowners, renters, or life insurance. Some companies offer a discount if you bundle multiple vehicles on the same policy.
• Safe Driving Discounts: Insurance companies often reward safe driving habits with discounts. This may include completing a defensive driving course, having a clean driving record, or signing up for a usage-based insurance program that tracks your driving behaviour.
• Vehicle Safety and Security Features: If your car has safety features such as airbags, anti-lock brakes, or anti-theft devices, you may be eligible for a discount.
• Good Student Discounts: Students who maintain good grades (usually a GPA of 3.0 or higher) may qualify for lower insurance rates.
• Occupation-Based Discounts: Certain occupations, such as teachers, physicians, or police officers, are considered lower-risk and may be eligible for discounts.
• Military and Veteran Discounts: Active-duty military members, veterans, and their families often qualify for discounted rates.
• Payment Discounts: Paying your insurance premium in full or setting up automatic payments can sometimes lead to a discount.
• Loyalty Discounts: Some insurance companies offer loyalty discounts to long-term customers.
• Affiliation Discounts: Being a member of certain professional or alumni organizations can sometimes lead to a discount on your insurance.

Raising your deductible

While some drivers prefer to keep their auto insurance deductibles as low as possible, raising yours could pay off under the right circumstances. If you don't drive often and feel you're less likely to get into accidents or sustain vehicle damage, you may benefit from raising your deductible. This is because auto insurance deductibles and premiums tend to have an inverse relationship.

However, before raising your deductible, it's important to ensure you have enough money in the bank to absorb the higher costs of filing a claim. You should also consider whether you can afford a larger outlay if you need to get your car repaired.

Some insurers will reward you for being a safe driver through an optional feature called a "diminishing deductible" or "vanishing deductible." Over time, if you steer clear of car accidents and maintain a clean driving record, your insurer will lower your deductible.

Minimum coverage

Bodily injury liability insurance covers medical expenses, lost wages, and pain and suffering for other people injured in an accident where you are at fault. The minimum coverage amount for bodily injury liability is typically set at a certain amount per person and a higher amount for all persons injured in a single accident. For example, in South Carolina, the minimum coverage amount is $25,000 per person and $50,000 for all persons injured in one accident.

Property damage liability insurance covers any damage you cause to the property of others, including damage to other vehicles, buildings, walls, fences, and equipment. The minimum coverage amount for property damage liability is usually set at a specific amount for all property damage in one accident. In South Carolina, the minimum amount is $25,000.

It is important to note that minimum coverage auto insurance only covers the other party's expenses in an accident where you are at fault and does not cover any damages to your own vehicle or injuries you sustain. If you want additional protection, you can consider purchasing comprehensive and collision coverage, which are optional types of insurance that cover damages to your own vehicle.

Full coverage

Liability insurance covers the cost of the other party's injuries and/or car repairs if you are at fault in an accident. It also covers your legal defence costs if you are sued over a car accident. Collision insurance covers damages to your own vehicle after an accident, regardless of who is at fault. Comprehensive insurance covers damage to your vehicle from incidents other than collisions, such as vandalism, floods, fire, and theft.

The cost of full coverage auto insurance varies depending on factors such as your age, driving record, location, and the coverage selected. On average, full coverage insurance costs around $1,766 per year, or about $147 per month, for a 35-year-old good driver with good credit. However, this can vary significantly, with some companies offering full coverage for as little as $100 per month.

To get the cheapest full coverage auto insurance, it is recommended to shop around and compare quotes from multiple companies. You can also consider increasing your deductible, taking advantage of discounts, avoiding traffic infractions, and improving your credit score.

Comparing quotes

• Don't assume that any one company is the cheapest. Get quotes from multiple insurers, including smaller, local, and regional insurers.
• Ask about discounts. Many insurers offer discounts for various reasons, such as bundling policies, having a clean driving record, or being a member of certain groups.
• Compare coverage levels and deductibles. Opting for higher deductibles or lower coverage levels can reduce your premiums, but make sure you have enough coverage to meet your state's requirements and your personal needs.
• Consider the company's financial stability and customer satisfaction ratings. Choosing a company with a good reputation and strong financial health can help ensure you get the best value for your money.
• Review the quotes carefully and consider all factors, including price, coverage, discounts, and customer service.
• Use online tools and calculators to compare quotes and find the best deal for your specific situation.

Frequently asked questions