How to Compare Cheap Car Insurance

Auto insurance is critical to help satisfy any state laws governing car ownership and operation, as well as to protect your assets if you're ever in a car accident, states the National Association of Insurance Commissioners. Unfortunately, car insurance can sometimes comprise one of the most expensive maintenance costs of owning a vehicle. When you're shopping around for car insurance, several comparison tactics and strategies can help you get the appropriate insurance coverage for the cheapest price.

• 1

  Obtain quotes from at least three different auto insurance providers, reports Smart Money magazine. Quoted rates can vary by hundreds of dollars between different providers. The more quotes you get, the better your chances of finding a cheaper rate.

• 2

  Provide the insurance providers with your most accurate information regarding marital status, children, address of residence and car make and model. Insurance providers use such details to calculate your fees, so keeping your information current ensures you're getting the best price and most appropriate insurance package, according to AAA's Via magazine.

• 3

  Ask the insurance providers what discounts you're eligible for, suggests the Federal Citizen Information Center. Many insurance providers will lower their fees if you take driving safety courses, insure more than one of your household's cars with the same insurance agent, install safety features like antitheft locks or ABC-enabled brakes, or keep your mileage below a certain threshold.

• 4

  Raise your deductibles, according to an Insurance Information Institute report published by the Federal Citizen Information Center. The higher your deductible, the lower your total insurance costs. For example, the Institute states that raising your deductible by a few hundred dollars could drop your quoted insurance price by 15 percent. This discount varies by insurance provider and can help you further pinpoint the cheapest car insurance plan.

• 5

  Cut out the extra coverage that goes beyond the essentials, advises Smart Money magazine. These include towing privileges and rental car insurance. The magazine reports that such extra coverage is often of dubious value and rarely used. Cutting out the coverage can help bring your quoted insurance prices even lower.

• 6

  Check with your state's consumer services department once you've settled on an insurance provider, suggests the Michigan State Department of Energy, Labor and Economic Growth. Most states track any complaints or lawsuits filed by consumers against insurance providers in the state. This can help ensure the insurance provider you've chosen doesn't have a bad track record with other drivers.