April 8, 2012

Finding Online Auto Insurance Quotes For A Cheap Vehicle

When looking for online auto insurance quotes, drivers should consider how the value of their vehicles would affect coverage options and insurance prices. A cheap vehicle does not always mean a cheap car insurance policy, particularly if the driver makes poor coverage decisions and takes the first available policy.

One of the first steps to getting cheap online auto insurance quotes is to choose appropriate levels of coverage. Cheaper vehicles are often cheap to insure, but only when drivers carefully choose coverage limits. For example: drivers with cheap vehicles rarely need large amounts of collision and comprehensive coverage. These types of coverage pay for damages to the policyholder's vehicle, but paying for several years of coverage is often more expensive than replacing an inexpensive vehicle. Many insurance agents recommend dropping comprehensive and collision insurance coverage if annual premiums cost more than 20 percent of the vehicle's value. However, there are a few important things to remember when dropping these coverage options.

First of all, many banks and credit unions require coverage that is equal to a vehicle's value. This is especially true when leasing a vehicle or providing a loan. Some drivers cannot cancel their coverage without violating the terms of their loan or leasing agreement. Secondly, drivers should remember that comprehensive coverage protects a vehicle from acts of God and auto theft. Therefore, drivers may decide to keep comprehensive coverage depending on their garaging locations and local climates. Drivers can also limit PIP coverage if they have adequate health insurance policies that cover emergency costs after an accident. Personal injury protection costs are often high for inexpensive vehicles, as cheap vehicles often have poor safety ratings.

Drivers should generally keep other types of car insurance high. Regardless of a vehicle's value, it makes good sense to keep high liability insurance coverage limits with reasonable deductibles. If cuts to comprehensive and collision car insurance do not significantly lower a driver's premiums, there are a few other key ways to get cheap car insurance coverage. One option is to look for online auto insurance quotes and compare policies from a few different insurance providers. This is particularly important since rates tend to vary from one company to the next. Comparing rates is also good for older, inexpensive vehicles, as insurers have a great deal of actuarial data on older cars.

Drivers should compare online auto insurance quotes with a free online tool after choosing coverage. Carefully comparing quotes will often yield an inexpensive policy with appropriate coverage, regardless of the value of a driver's vehicle. A cheap car insurance policy is certainly worth the work, especially for an older or inexpensive vehicle.