As with anything, you get what you pay for, and car insurance is no different. Sure, car insurance can be pretty expensive. In some locations many drivers complain that their monthly insurance premiums are more than their car payments, and that’s why many drivers have decided to downgrade to cheap insurance.
Cheap car insurance can mean many things, but it usually doesn’t mean it’s really “cheap”. Most likely your premiums will be reduced simply because you have increased your deductibles, reduced coverage, cut out any duplicate coverage (road side emergency service, etc.), and did some price comparisons with other companies.
Your actual location will have a lot to do with what is considered cheap, too. If your state has no fault insurance, your premiums could be higher simply because you’re paying “no matter what”. You are forced into having higher limits in order to make sure all accidents and losses are equitably covered.
However, for states without no fault, you have a few options. If your car is leased, you probably pay much more than you want to, but you don’t have a choice. In case of total loss the leasing company, who really owns your car, wants their investment completely insured.
If you own your car and have car payments, your lender will dictate what your minimum amount of coverage needs to be. They don’t care about your deductibles – that’s your problem – they just want to know that if your car is totaled, they will get their loan repaid in full.
However, if you don’t have any car payments, your state has definite regulations about the minimum amount of insurance you must have. Frequently, if you want to cut down to the bare bones you can get some really cheap insurance. Some states only mandate PIP insurance – personal injury protection. Your car won’t be covered, but you will in case of any injuries, and any other occupants will be covered as well.
PIP has different limits so if money is an issue, make sure you are opting for the lowest amount possible which is usually $100k/$300K. Depending on the age of your car and a few other factors, there’s a chance you might be able to get your insurance down to about $50 a month.
If you don’t want to skimp on insurance but merely want to find the best deals out there, you’ll find that most insurance carriers in a particular state have comparable rates, no matter what TV commercials say. Their cheap rates are only given if you have multiple policies for different types of insurance.