Getting the cheapest car insurance depends on a variety of factors, including where you live. Every state law has a different minimum limit for required insurance coverage. Most states require a basic policy for liability insurance and some states, especially no fault states, require Personal Injury Protection (PIP).
Not only does the minimum coverage amount vary from state to state, but state laws vary regarding the setting of insurance rates. Furthermore, your age, driving record, credit score, type of car, and a host of other reasons can play into the cost of your car insurance.
Car insurance can cost as little as $20 a month, but then the coverage will be very limited. Most car insurance premiums average around $70 per month. Do more than just settle for average! Enter your zip in now to get a free car insurance comparison!
State Insurance Requirements
Every state today, whether a no fault state or not, requires some form of minimum insurance coverage or proof of financial responsibility. Typically coverage is limited to liability such as bodily injury and property damage, and/or PIP.
Liability insurance covers damages caused by you to another party’s vehicle. It also covers medical for the other person and their passengers to the extent of coverage you purchased. PIP covers your own medical damages resulting from an accident regardless of who was at fault. PIP is used in no fault states to limit lawsuits by making everyone responsible for their own medical damages. PIP covers the insured party as well as the passengers in his vehicle at the time of the accident.
Basic state requirements are usually very small and can be as low as 10/20/10. This means that your insurance will pay out a maximum of $10,000 for a single person in the victim’s car, $20,000 for all people in the victim’s car, and $10,000 for property damage. Since the minimum requirements can still leave an insured person at financial risk, it is a good idea to carry more than the bare minimum. However, the bare minimum is the cheapest car insurance you can get.
Factors Affecting Car Insurance Rates
Some states allow car insurance companies liberal competition while other states are more restrictive. The minimum amounts of coverage vary, which can change the cost of your insurance. However, other factors also play into the average rates for each state, such as the state income level. Communities within the same state can also have different rates then each other based on a variety of things such as the average crime rate or rural area versus city driving.
If you live in a neighborhood that is high in auto theft or vandalism, your insurance rates will reflect that. Your own personal profile will also play a major role in the determination of your car insurance premium. Middle aged experienced drivers tend to pay less than the young and inexperienced drivers or the elderly. If you drive a high risk automobile, you may pay more for insurance then you would pay for a car with a lower insurable value. Newer cars tend to cost more to insure for comprehensive and collision while older cars don’t typically even carry that type of coverage.
However, depending on the make and model of the new car your insurance can range drastically. High end cars with expensive replacement parts tend to cost more to insure than the average low cost more typical car. It is a good idea to call your insurance agent before buying a car to compare insurance rates for different vehicles you’re considering. You can compare quotes online for free now by entering some basic information.
You can usually lower your insurance premium by purchasing a car equipped with certain safety and security features. If your car does not come with them, it may be worthwhile to install them aftermarket. The cost of insurance savings usually pays for these devices over the course of your car’s lifetime. It is also possible to reduce your cost by enrolling in and passing a defensive driving course. Your driving record will have a major impact on your insurance. A single speeding ticket can raise your rates, let alone a host of moving violations and/or accidents.
Cheapest States for Car Insurance
Although every insurance policy is individualized, the base rates are somewhat standardized, making some states repeatedly rank in the lowest percentile for insurance rates. Rural states with a less dense population usually fall in this category. For example, it is usually easy to get cheap car insurance in Kansas, Oklahoma, Montana, and Wyoming. On the other side, the highest ranking states include Louisiana, Massachusetts, New Jersey, New York, Rhode Island, and Washington, D.C.
Whichever state you live in, you do have some control as to the cost of your insurance. Do what you can to raise your credit score because a low credit score can have a negative impact on your insurance rate. Avoid high theft risk cars and high insurance cars if possible.
Employ safety and security devices in your car, use defensive driving methods, take advantage of all possible discounts offered by your insurance company, and most importantly shop around for the cheapest car insurance you can get. Use a third party rate quote tool every time your policy comes up from renewal to ensure you are getting the best rates possible for the coverage you need. Start now!
