There’s a common misconception that if one wants cheap car insurance, they have to sacrifice quality in exchange for affordability. While there are certainly some factors that can drive up the cost of insurance, as well as perks which cost a pretty penny, it’s possible to acquire cheap car insurance without breaking the bank.
Cheap Car Insurance- Just the Essentials:
When it comes to car insurance, there is a certain level of minimum coverage that must be met according to law. While the specifics may vary from state to state, there are two very important components to car insurance that are almost completely non negotiable, namely, liability for bodily injury and property damage. Put simply, bodily injury liability covers physical harm done to people, while property damage liability covers damage to property.
While there are more comprehensive packages, including coverage for collisions, vehicle rental or replacement, person and property damage caused by uninsured and underinsured motorists or even wage reimbursement, these are all extras that are not mandated by law. Typically a basic car insurance policy meets the needs of most households. From there, it’s a matter of determining how much a deductible one can afford. A higher deductible means lower month to month payments, but will increase the out of pocket costs of damage in the event of an accident. However, the benefit of lower monthly payments is ideal for the safe driver.
While fancy all-inclusive packages seem nice, and even mandatory, these typically far exceed the established minima required by state law. In reality, cheap car insurance without sacrificing coverage is a matter of recognizing one’s specific insurance needs, the factors that work for and against them as a driver. From there, planning ahead accordingly in terms of vehicle choice, levels of coverage, and deductible vs monthly payments ensures that the wise driver stays safe and insured.
Hotwire Insurance Services takes cheap car insurance a step further: we don’t charge broker’s fees.