Finding the Cheapest Auto Insurance

Insurance is both necessary at times and often compulsory by law. If you drive, you must have at least a legal minimum of insurance. If you have a mortgage on your house then you will need to maintain a certain amount of insurance even though the house is technically owned by the mortgage provider. If the vehicle you drive is being paid for by finance then the finance company may stipulate a certain level of cover, otherwise the legal minimum is necessary. You need to ensure you find and take out the best level of auto insurance for your own circumstances.

With auto insurance, the minimum part of the insurance by law is to pay for third party claims, where another car, person or property is involved and you are held responsible. Third party only insurance is the cheapest type of auto insurance but it does not cover you or your car, only claims by other people against you. If the accident you are involved in is caused by someone else then their insurance should cover you and your vehicle. However, if you crash your car into say a wall then you will have to pay for the damage yourself.

If you are determined to get the lowest cost insurance available there are one or two things you need to think about. The age of your vehicle? In the event of an accident would it be financially viable to repair it? It is possible a vehicle under say $2000 may not be worthwhile saving. It is possible to find auto insurance policies that would pay the market value of the car or even the actual replacement cost of it. A car is usually classed as a right off by the insurance company if it is going to cost more to repair it than it is worth. These days $2000 does not pay for a lot of repairs especially with many cars having expensive plastic panels and paint jobs.

A more expensive vehicle would probably need to have better auto insurance cover. The last thing you would want is to have an accident and then find you had no vehicle until you could afford the repairs. Often with better auto insurance cover your expenses after an accident would be covered regardless of the outcome. You would need to check an insurance company to be sure of the extent of cover you would have.

It is possible to find auto insurance that would give you a choice of deductible amounts. This can make your insurance cost cheaper. However, the higher the deductible the more you would need to pay for it when you claim. If you choose a higher deductible it would mean you would take more of the risk and that means your cost would be lower. It can be a good way to save money on your policy.

After taking precautions to like your auto insurance cover and getting a vehicle that is not considered risky you could look at the coverage levels you have chosen. Downgrading the coverage level can save you a lot of money on your insurance. However, the importance of the deductible should not be forgotten. You could be left out of pocket financially if you forget to answer the question properly when you apply online.

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