You bought a new car. Or at least new to you. You shopped around. You made sure you got a great price on a great vehicle. Well done! Now you're looking to save on car insurance. But! When it comes to saving ... cheaper isn't always better.
Why cheap car insurance isn’t always best
Your auto policy should be kind to your wallet. But it should also protect it. Here are a few reasons why the cheapest car insurance out there isn't always your best bet.
- Fewer coverages. Increased repair costs. Choosing your state's minimum coverage requirements will keep your auto insurance on the cheap side. But it won't likely help foot the bill for collision damage to your car. Nor would it step in if it was ever vandalized. Repair costs would come out of your wallet.
- Minimal limits. Minimal protection. Settling for your state's minimum limits on certain coverages could also save you money upfront. Even so, you might be surprised by how quickly limits can be reached and breached. If you're in an accident that costs more than your limit — you'd have to pay the difference. Out of your own pocket!
- Higher deductibles. More out of pocket. A deductible is what you pay out of pocket before coverage steps in. Choosing a higher deductible typically lowers your premium. Just make sure you choose a deductible you can comfortably afford — your bank account will thank you.
A cheaper policy in action
Let's say your bodily injury limit's $25,000. One day you're in an accident. You're found at fault. If that's not enough, the other driver's injured. In fact, they're looking at medical bills in excess of $100,000.
That means you're on the hook for $75,000. GASP. And whatever you saved by choosing a lower limit is now coming back to bite you.
Your car insurance is there to protect you when life takes a sudden turn for the worst. But if you get the cheapest car insurance possible — that protection may not mean much. Your wallet will be feeling it and no one wants that.
Ways to save on car insurance
Just like you don't want the cheapest car insurance on the market, you also don't want to pay an arm and a leg. Right? Here a few simple ways to save on auto insurance:
- Sign up for DriveSense®. Get a discount just for signing up. Then drive safely to save even more. The safer you drive, the more you could save. Now THAT makes sense.
- Insure more than one car. It could land you a Multi-Car discount on your auto policy. Easy said, easy done.
- Own your home. Bundle your home and auto insurance for a discount. Two policies in one place can save you time AND money.
- Rent your home. It's not just homeowners who can reap benefits. If you're a renter, earn a discount for adding renters coverage to your auto policy. It's designed to protect your stuff plus safeguard your liability if a guest gets hurt in your home.
- Pay in one lump sum. Instead of monthly installments, pay your premium all in one go — it could lower your price tag.
- Keep your info updated. Have you installed anti-theft devices on your car? Are you now taking public transit instead of driving to work? Is your teen getting good grades in school? These are all worth telling your insurer about. Each of them could earn you a discount.
So how do you get the cheapest AND best car insurance?
And why not start here? Coverage Counselor® takes the guesswork out of car insurance — making it super straightforward and understandable. It's an online tool that explains coverages for you to consider in words that make sense. No gibberish. So you can feel confident about getting the protection that's right for you.
Then get a quick, free car insurance quote to see how much you could be saving with Esurance.
Get safety discounts on your car insurance
Your car's safety devices can save more than your life — they can also help you save on car insurance. Find out more on the Esurance blog.
Auto insurance discounts
If you have questions about the car insurance discounts available, you'll find answers here.
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