Cheap car insurance companies will cover basic legal requirements to maintain insurance. You may not find great customer service or coverage if you do have a claim. However, some people opt to pay these expenses out of pocket and maintain very little in terms of insurance. When you are seeking the cheapest coverage that meets local standards, consider the following tips.
Look for Small Companies
Buying brand name car insurance is just like buying brand name clothing. You will pay for the ability to work with one of the largest car insurance companies even though it may not always be the most affordable option for you. You can look into local and state insurance companies as an alternative to large, national groups. These companies will not have the same familiar way of doing things, and you may find luxuries like online claim filing are not available. Ultimately, the coverage will likely be cheaper.
Bundle your Insurance
Car insurance does not have to come from one of the top 10 car insurance companies. You can get your auto insurance through nearly any insurer, including the same company that provides your home, medical or business insurance. If you are a business owner, particularly, you should ask about adding your car insurance onto your business policy. Whenever you bundle more than one form of insurance with the same company, you will find savings. Bundling is easier for the companies because it requires less paperwork; it is also cheaper for an insurer to add your policy then go find a wholly new customer. You will find discounts by opting for a non-traditional insurer.
Online car insurance companies often allow you to purchase cheap, low-coverage plans straight over the Internet. When you request a quote from an online company, your information will usually go into a simple computer program. You will not get a chance to speak with someone directly, but this is one of the ways the insurance company saves money and passes those savings on to you. If you are willing to accept low coverage and settle for less-than-personal service, there is a whole like of car insurance companies that will write your policy over the Internet for little expense to you. These companies will also offer streamlined online claims handling in most cases; just don't expect them to show up to drive you home after an accident.
Take Advantage of Discounts
Bargain shopping is always a good practice, no matter what you are shopping for. Most insurance companies will offer you incentives to switch companies or purchase during a period of slow business. From time to time, insurance companies run specials just like clothing stores. There is nothing wrong with switching your insurance company, because very few companies truly reduce rates for loyal customers. You will often have more to gain by jumping around than by staying in one place for your insurance needs. You can also find advantages for good students, safe drivers, new parents and other incentives. Continually shopping around is the best way to find these discounts.