How to Save Money on Auto Insurance
Find out your state’s minimum requirements., Research the different types of coverage available., Select the coverage that best suits your needs.
Step-by-Step Guide
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Step 1: Find out your state’s minimum requirements.
Nearly every state requires liability insurance for all registered cars.
This covers damage that you might cause to another person’s car in an accident, if you are at fault.
It also protects you if you injure someone else.In addition to liability coverage, some states will require minimum additional coverage for your own vehicle or injury.
To find out the minimum requirements in your state, you should visit your state’s Department of Motor Vehicles website and look up insurance coverage.
The DMV may sometimes be called the Registry of Motor Vehicles, Division of Motor Vehicles, or some other similar name.You can also learn about the minimum requirements in your state by speaking with a licensed insurance agent in your area. -
Step 2: Research the different types of coverage available.
You can read up on types of insurance coverage online or talk with an insurance agent in your area about the options you have.
By familiarizing yourself with the options, you can then decide which ones you need and which ones you don’t.
If you limit yourself only to the coverage that you really need, you can keep your insurance costs down.
Here are some of the most common options:
Bodily injury liability.
This covers you for injuries you cause to others if you are at fault in a car accident.
Property damage liability.
This will pay for damage to another driver’s property if you are at fault for an accident.
Medical payments coverage.
This will protect you and any passengers in your car for injuries sustained in an accident.
This will apply regardless of fault in the accident.
Uninsured or underinsured motorists coverage.
This will cover your expenses if another driver, without insurance, injures you in an accident.
Collision coverage.
This pays for damage to your car if it hits another object or otherwise sustains damage in an accident, regardless of fault.
Comprehensive coverage.
This pays for damage or loss to your car as a result of theft or any cause other than an accident, such as storms, fire or vandalism. , Once you understand the options that are available and you learn about your state’s requirements, you can then minimize your costs by choosing only the coverage that you need.
You can discuss your selections with your insurance agent for guidance.
For example, if you have high earnings and liquid assets, you are open to possible lawsuits in case of an accident.
In this case, you may prefer to choose higher levels of liability coverage.
If your car is old and not worth much, you may choose a low level of collision insurance, or choose not to carry collision insurance at all.
In case of an accident, you might just elect to buy a new car.
If you are financing or leasing a new car, the dealership may set certain requirements for you to meet regarding insurance coverage.
This will be something to discuss at the time of purchase. -
Step 3: Select the coverage that best suits your needs.
Detailed Guide
Nearly every state requires liability insurance for all registered cars.
This covers damage that you might cause to another person’s car in an accident, if you are at fault.
It also protects you if you injure someone else.In addition to liability coverage, some states will require minimum additional coverage for your own vehicle or injury.
To find out the minimum requirements in your state, you should visit your state’s Department of Motor Vehicles website and look up insurance coverage.
The DMV may sometimes be called the Registry of Motor Vehicles, Division of Motor Vehicles, or some other similar name.You can also learn about the minimum requirements in your state by speaking with a licensed insurance agent in your area.
You can read up on types of insurance coverage online or talk with an insurance agent in your area about the options you have.
By familiarizing yourself with the options, you can then decide which ones you need and which ones you don’t.
If you limit yourself only to the coverage that you really need, you can keep your insurance costs down.
Here are some of the most common options:
Bodily injury liability.
This covers you for injuries you cause to others if you are at fault in a car accident.
Property damage liability.
This will pay for damage to another driver’s property if you are at fault for an accident.
Medical payments coverage.
This will protect you and any passengers in your car for injuries sustained in an accident.
This will apply regardless of fault in the accident.
Uninsured or underinsured motorists coverage.
This will cover your expenses if another driver, without insurance, injures you in an accident.
Collision coverage.
This pays for damage to your car if it hits another object or otherwise sustains damage in an accident, regardless of fault.
Comprehensive coverage.
This pays for damage or loss to your car as a result of theft or any cause other than an accident, such as storms, fire or vandalism. , Once you understand the options that are available and you learn about your state’s requirements, you can then minimize your costs by choosing only the coverage that you need.
You can discuss your selections with your insurance agent for guidance.
For example, if you have high earnings and liquid assets, you are open to possible lawsuits in case of an accident.
In this case, you may prefer to choose higher levels of liability coverage.
If your car is old and not worth much, you may choose a low level of collision insurance, or choose not to carry collision insurance at all.
In case of an accident, you might just elect to buy a new car.
If you are financing or leasing a new car, the dealership may set certain requirements for you to meet regarding insurance coverage.
This will be something to discuss at the time of purchase.
About the Author
Justin Anderson
Justin Anderson has dedicated 10 years to mastering lifestyle and practical guides. As a content creator, Justin focuses on providing actionable tips and step-by-step guides.
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