How do cheap auto insurance plans work?

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Things to Remember...
  • Almost all fifty states in America require you to have some type of car insurance if you wish to own and drive your vehicle
  • There are many different factors that can affect the price of your cheap car insurance such as make/model of car, year, zip code, driving record, etc
  • If you have not purchased a car yet or if you are thinking about getting a new car, you may want to pick a car that will not cause higher insurance premiums
  • If you are more willing to pay a higher deductible, you will be able to get a lower insurance premium


Almost all fifty states in America require you to have some type of car insurance if you wish to own and drive your vehicle.

It is important for you to learn about all of the car insurance requirements in your state.

This has to be done before you can even think about purchasing car insurance. See a FREE car insurance comparison based on your ZIP code by entering it into our comparison tool now!

You have to make sure that it is legal for you to drive your vehicle. Before you can get cheap auto insurance, you have to consider a few different factors.

Understanding these factors can help you find out why your car insurance rates are expensive and what you can do to lower them.

What Cheap Car Insurance Is Based On

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There are many different factors that can affect the price of your cheap car insurance. For example, the following things affect your car insurance:

  • The type of car you drive
  • Where you live
  • How often you drive your car
  • Your relevant characteristics
  • Your driving record

The type of car you drive is a big influence to compare in how cheap your rates insurance are. For example, owning a sports car makes your car insurance more expensive.

However, owning something sensible like a family sedan can actually help you get cheap car insurance.

Car insurance companies make your car insurance more expensive if you purchase a car that has a very high theft rate.

In addition, car insurance companies base your car insurance price on the value of your car. This is because they will have to pay for that car if anything happens to it.

Where you live is another factor that can influence cheap car insurance.

For example, if you live in a place that features a higher chance of theft or vandalism, you have a higher chance of dealing with expensive car insurance rates.

Most cars are not damaged in rural areas. Living in more urban areas will cause your car insurance rates to go up. How often you drive is another factor.

This is because car insurance companies know that your chances of getting into a car accident are increased if you drive more often. Many people choose to use their car on the weekends.

This will help your car insurance rates go down. If you drive to work each day, your rates will be higher.

However, they become even higher if you do not live close to work. All these factors can be accounted for in an online auto insurance quote comparison.

Who you are also affects how cheap your car insurance can be. For example, the following things will influence cheap car insurance rates:

  • Your sex
  • Your age
  • Your marital status
  • Your driving record
  • Your number of accidents

Although this may seem a little unfair, statistics make it reasonable for insurance companies to do this.

For example, statistics show that single and young males have a higher chance of getting into a car accident.

In addition, men and women who are under 25 have to pay higher insurance premiums because their chance of getting to a car accident is higher.

However, men and women who have an almost perfect driving record get to enjoy cheap car insurance. Drivers who have a record of getting into a lot of car accidents will naturally have to pay a very high car insurance premium.

You can’t change your existing driving record, but you can remember to drive safe in the future knowing that your auto insurance will improve with time and good driving.

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What to Change to Get Lower Rates

There are many different ways to keep car insurance rates cheap. For example, you may want to try purchasing a car that insurance companies do not frown upon.

Insurance companies know the types of cars that have more problems.

Insurance companies also know what types of cars have a higher chance of being stolen.

If you have not purchased a car yet or if you are thinking about getting a new car, you may want to pick a car that will not cause higher insurance premiums.

Insurance companies offer discounts for cheap auto insurance for many different reasons. This includes the following cheap car insurance discounts:

  • You own more than one car insured by the same company
  • You are a student with good grades
  • Your driving record is free from accidents

It may be a good idea for you to contact your car insurance company about more discounts that may apply to you.

Once you know the discounts your company offer, compare what discounts you could be getting with other companies

Even if there are not a lot of discounts that can offer you cheaper car insurance, it is possible for you to get cheap car insurance.

For example, if you decided to catch a ride to work instead of using your car everyday to get to work, you can get cheaper car insurance. Look for ways to save money rather than drive without insurance.

In addition, driving carefully can help your car insurance stay cheap. Most car insurance companies try to avoid insuring drivers who are more likely to get into a car accident.

This is the main reason why car insurance can get so expensive. This is why safe driving pays off for more than just the obvious reasons.

Car Insurance Deductibles

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Trying to buy cheap car insurance is more than just how often you get into a car accident and how expensive your car is.

Getting cheap car insurance also involves how much you are willing to pay for coverage.

All insurance companies will force you to choose a deductible while you are choosing a car insurance policy. Deductibles are the part of the car insurance policy that you are required to pay.

Car insurance companies do not pay for all of the expenses. Most deductible options include the following pay options:

  • $1000
  • $500
  • $200
  • $100

If you are more willing to pay a higher deductible, you will be able to get a lower insurance premium. You get overall cheaper car insurance based on the deductible that you are willing to pay.

With these factors influencing cheap auto insurance plans, make some comparisons to see what insurance plans are both legal and the cheapest for you.

Enter your ZIP code into our FREE auto insurance comparison tool to compare rates right now!

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