Car insurance rates vary drastically from person to person, and this is because insurance companies base rates on dozens of different factors. If you have a very tight budget but need car insurance, here are the four best things you can do to get the cheapest car insurance policy available.
Choose the right car
The first thing to understand is that the car you own will affect the rates you pay. If you have a brand-new car, you might want to sell it and buy yourself an older car. Older cars are worth less money, and this will result in paying less for insurance. Secondly, if you have a loan on your car, you may want to find a way to pay it off. If you have a loan, you will have to purchase more insurance on your car than if you did not have a loan on the car.
Go for the bare minimums
The next tip for saving money on car insurance involves choosing the right types and levels of coverage for your policy. You can choose to have a lot of car insurance coverage, or you can choose to have barely any coverage. If you do not have a lot of money to spend, choose the bare minimums when it comes to coverage. The bare minimums refer to the lowest amount of car insurance your state requires. Choosing a really low amount of coverage will cost significantly less than having a lot of coverage on your car.
Keep your deductible really high
Another great way to get the lowest rates is by choosing a really high deductible on your policy. Deductible amounts affect premiums of car insurance policies. A low deductible will result in a higher premium, while a high deductible will result in a lower premium. If you want a cheap policy, choose a $2,000 deductible instead of a $500 or $1,000 deductible.
Shop around for quotes
Finally, you should call several insurance companies to ask for quotes. While all insurance companies base rates on a lot of factors, each company will come up with a slightly different quote, and you could choose the lowest quote if you really want to buy the cheapest policy available to you.
You can contact an insurance company to learn more about the options you have for car insurance, and this is a great way to find a policy that you can afford and that offers the coverage types you really need. For more information, contact companies like LA Insurance.