How to Get Car Insurance on a Budget

1.

Go with a high deductible if you won't mind paying more if your vehicle is damaged. Having a higher deductible on your policy can significantly lower your monthly payments.

2.

Have a good credit rating. Many insurance companies will check your credit rating when figuring your monthly payments. If you have good credit, you are likely to have a lower payment than if you have poor credit.

3.

Check with an insurance company about the lowest required amount of insurance coverage in your state. Many states will allow you to have liability coverage only, which is far cheaper than full coverage insurance. Keep in mind, however, that liability insurance will not pay for repairs to your own car if you cause an accident.

4.

Contact the insurance company that provides your home insurance. Many times, you will get a discount for using the same insurance company for all of your needs.

5.

Shop around for many different companies. Get a quote from each company to compare monthly payments and coverage before you buy a policy. Almost every insurance company will offer a different monthly rate.

6.

Search the Internet for insurance companies. These companies often offer more competitive rates.

Tips and Warnings

  • Don't forget to ask about the down-payment amount. Sometimes a company will offer low monthly payments only to ask for a large down payment.