Hunt Carefully For Cheap Auto Insurance

Every driver today faces the problem of finding affordable auto insurance. Trouble is, many times cheap auto insurance has so little coverage that it's almost worse than going without auto insurance. That's why industry experts recommend drivers look for the least expensive auto insurance that provides the most coverage.

Insurance industry experts say that drivers can compensate for factors out of their control, such as age, gender, and the number of claims in their region, by performing some "due diligence" before buying insurance. Here are their top tips.

Gather several quotes on insurance rates. Prices can differ widely in the same selling area, so shopping for the best rates is a crucial step. One way to accomplish this more easily is to use the online interactive map prepared by the National Association of Insurance Carriers. Click on a state, and a link takes the user straight to the website of that state's department of insurance. This regulatory agency keeps tabs on all insurance companies operating in the state and can provide consumers with helpful information on rates and performance.

Choose a vehicle according to its cost of insurance. This can seem like a fussy way to buy when a driver has fallen in love with a hot sports car, but it makes good financial sense. That's because sports cars, as well as top-of-the-line vehicles and brand-new models, all cost much more to repair, making their insurance more costly as well. Less flashy and cheaper cars may not convey as much status, but they'll leave more insurance money in drivers' pockets.

Select a higher deductible amount. Big savings can be realized by shouldering more of the risk for car damage. Choosing a $1,000 deductible over a $500 amount sometimes can save as much as 40 percent on premiums.

Drop comprehensive and collision insurance on older cars. Often repairing older cars costs more than the car's resale value. To determine if this is the case, multiply by the cost of C&C coverage by 10 and compare that amount to the suggested resale value in the NADA sellers' guide, known as "the blue book." If the insurance costs more than the car is worth, drop it.

Prove creditworthiness. These days insurance companies are raising the rates on drivers whose credit ratings aren't very good. By improving credit scores, drivers can reassure insurance companies that they'll pay their bills.

Dig out the discounts, but don't lose sight of the big treasure. Getting a good discount can be thrilling, but watch out for insurance companies that jack up their premiums to account for big discounts. Sometimes it can be better to forgo a tempting discount to get a better basic insurance rate. That said, if discounts look like a good deal, then go for every qualified benefit: senior citizens, low mileage, good students, professions such as teachers or military personnel, driver education, good driving record and so on. The ultimate goal is always to get the right amount of coverage when hunting for cheap auto insurance.