Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 17, 2020

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember...

  • Auto insurance is required by law in all states, but each state sets the limits to required coverage
  • Reducing the amount of coverage you have is not necessarily the smartest move in the long run
  • Maximize the best deal on car insurance by asking for discounts and driving according to the law

If one is to drive a vehicle on the American roadways, then it is a requirement of the law that they carry the minimum amount of auto insurance.

Each state determines its own minimum requirementsIn most cases, these policies do not provide sufficient auto coverage in case one is involved in an accident and is found to be at fault.

There are a few other reasons why having only the minimum insurance cover can hurt one in the long run:

  • Each insurer will hike the premium rates if there is an accident followed by a claim, and the increase is at the discretion of the insurance company backing the policy.
  • If one has a poor driving record, the insurance company can refuse to renew the policy, and what constitutes as bad varies with different companies.
  • If one decides not to inform their insurance company about some minor accident, it can come back to haunt one if the other driver decides to sue after the fact.

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Maximize Benefits With Cheap Insurance

There is no need to sacrifice coverage when seeking cheap auto insurance.

There are ways one can have both, but you must compare the different coverage options available and negotiate with the insurance agent to get exactly what they want for a cheaper price.

There are numerous auto insurance companies, and competition is tough — meaning that consumers needs insurance and companies need business equally.

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Here are some tips on how to get maximum benefits:

  • Liability coverage — Get the coverage per person as close as possible to the total coverage the insurance company provides per accident. For example, if the total coverage is $300,000 and a single person injury is $50,000 and one is found liable in an accident costing $100,000 in injuries to a single person, then they’ll have to pay $50,000 out of pocket!
  • Increase the deductibles — Many people opt for a policy with low deductibles and as a result, end up getting the minimum auto liability cover. If, however, one chooses to raise deductibles, it may be possible to increase liability cover with the same premiums.
  • Choose an umbrella policy — Umbrella policies usually come with cheaper costs associated with them. If one has assets like a house or a boat, getting them insured from the same insurance provider could be convenient and cost effective.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Compare Insurance Companies

Shopping around and getting quotes from several insurance providers pays off. Not all insurance companies calculate premiums in the same way and that is why quotes differ for the exact same policy.

Every insurance policy comes with its own set of perks. Don’t just ask for quotes first. Be specific about the numbers and then find out about the additional benefits each has to offer.

Choose the one that has the most benefits suiting individual needs and the lowest cost.

The credit score can be used by an insurance company to decide how good one is at handling money. With a bad credit history, chances are the premiums will be high, while a good credit rating is rewarded with lower premiums.

The way a company behaves when a claim is made is one of the most important factors when deciding whether to insure with it or not. Some companies are good about settling claims, while others delay unnecessarily.

One can get information about the complaints against an insurance company before signing with them from the National Association of Insurance.

Reducing car insurance coverage is not always the best way to save money on auto insurance.

Accidents can happen at any time, and one has to make sure that he is fully protected; otherwise, the potential financial risk can lead to the loss of all of one’s assets.

Shopping wisely and comparing prices can help get good coverage at reasonable prices. Find the best auto insurance companies by using our FREE comparison tool!

References:

  1. http://www.naic.org/state_web_map.htm
  2. https://www.allstate.com/tools-and-resources/car-insurance/liability-car-insurance-cover.aspx
  3. https://www.esurance.com/info/car/the-pros-and-cons-of-high-deductibles
  4. http://www.iii.org/article/should-i-purchase-umbrella-liability-policy-0
  5. http://www.consumerreports.org/cro/car-insurance/credit-scores-affect-auto-insurance-rates/index.htm
  6. http://www.naic.org/