Why People Look Out for Cheap Car Insurance

Many of us own an automobile. And as mandated by law, these 4-wheel vehicles should be covered by car insurance. The purpose of this insurance is to provide protection against damages resulting from road accidents, and liabilities which could arise from these unfortunate events. Most of the companies got high premium for car insurance, however we always prefer to have budget-friendly. We want cheap car insurance.

It is a good idea to shop around for the cheapest auto insurance quotes. These cheap car insurances can be very tempting, but you have to study them further and determine what exactly you’re getting for the money you’re paying.

Car insurance coverage could range from third party only, which is the legal minimum, to comprehensive. Logically, less coverage implies lower price. So if you came across insurance quotes wherein the comprehensive insurance coverage is only slightly more expensive that the third party only package, don’t immediately take it as a bargain. Check the fine prints for strip down policies, which initially appear cheap, but will charge you for additional features.

It is interesting to note that where you live has a big impact on your vehicle insurance premium. If you live in a major urban center, which are more populated, you are likely to be charged a higher premium. Needless to say, living in a remote rural area will warrant a lower premium.

Your cheap car insurance could be coupled with high auto insurance excesses to keep the premium low. These excesses are what you pay when making a claim, which include deductibles. But larger excesses for perceived higher risk drivers, like young drivers and foreign drivers, are normal. You may opt for the higher deductible, which could bring down your insurance premium by as much as 40%. True, you will be paying much more when making a claim, but what are your chances of accidents anyway. You are the best judge to that.

Some user claims that it is common for cheap car insurance to come with higher extra charges. These charges are slapped on the insured when a policy is canceled or when a claim is processed. Higher extra charges are imposed to compensate for the lower insurance premium.

The mode of payment has a bearing on the insurance premium. If you pay in one lump-sum, you will not be penalized for the cost of money which goes with staggered payments. The small amount you can save monthly could be significant if computed on an annual basis.

Packaging your insurance policy is also a good way of realizing cheap car insurance. By converting your vehicle insurance policy with your home insurance policy into a multi-line policy, you can save as much as 15% on the premium payment.

But where does one start looking for cheap car insurance? A good place to start is the website on consumer surveys of different vehicle insurance brands. These surveys usually rank insurance companies based on consumer satisfaction. Chances are you will not go wrong with the top five insurance companies in the list.