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Low Cost Car Insurance Policy

Low cost car insurance policy provisions save drivers money and give them more value for their premium dollar. For almost all drivers, the ability to find good rates on their insurance policies is very important. This is an expense we can't afford to waste money on. As consumers we have to find ways to lower these rates to help them better fit in with our financial budget each month. And to do this, to find a low cost car insurance policy, we've got to know where to look and what to look for when comparing car insurance pricing.

Danger of Driving without Insurance

Some drivers get the impression that driving without auto insurance is the best way for them to save money. To them, the money they send to the insurance provider each month seems like it's wasted when they could be using it for something else. But there is huge value in the premiums we pay for auto insurance, and great danger in driving without coverage.

Auto insurance protects you in liability situations, for example. Get into an at fault accident while uninsured, and you'll face potentially stiff out of pocket costs. And don't think that because you don't have the cash to pay a big settlement that you'll get out of it. Courts can permit victims to come after the personal assets of negligent drivers to repay financial obligations in the wake of car collisions. So it is clear that a good auto policy is an important asset to have when you get behind the wheel. Beyond the legal necessity of being insured in most states, the simple protection it offers you as a covered motorist is crucial.

Basis of Auto Insurance Rates

The auto insurance industry is a business just like any other, interested in making a profit in the products and services it provides to its customers. In the case of the insurance industry, the product being supplied is risk assumption. Every time a driver gets behind the wheel of a car, there is risk involved. In fact, just owning a car and having it parked in the garage or out front involves some risk. Insurance companies volunteer to take on a great portion of the risk of financial loss associated with owning and operating a vehicle in exchange for the premiums we pay.

Since insurance companies are in the business of taking on risk, the rates they charge are based on their assessment or calculation of the level of risk involved in bringing someone on as a customer. If you are looked upon as a high risk driver, you will pay more for your policy than you would otherwise.

Depending on your driving record and a host of other factors, you might actually get a better price on car insurance online from high risk carriers, because they specialize in finding ways to get drivers insured who don't fit the model for a standard or preferred auto policy. This, of course, is all based on your specific situation. Everyone is different, and the best we can do is talk to some insurers and see how they assess our candidacy for the programs and policies they offer.

Finding Low Cost Auto Insurance

There are some major companies in the industry that are still able to offer low prices to most drivers on their auto insurance policies. And these days, more specialists are popping up that give drivers a fair shake when they can't get a good deal from the big boys. Often it appears as though the policies offered by the large national companies are a better value because of the "free" extras added into the policy, such as emergency towing assistance. But in reality, none of these extras are free. If you are a member of an auto club and do not need towing coverage, for example, you might be very surprised how much you can save by knocking out some of these extras from the policy.

Credit Scores and Auto Premiums

And of course, as some people are already well aware, for better or worse our credit scores are tied into the prices we pay for auto insurance. While it might not seem like your inability to pay your credit card bills a few years back should have anything to do with your ability to safely operate an automobile, the industry has extensively studied the connection between credit scores and claims, and found a strong positive correlation between good credit and low claims as well as a strong relationship between poor credit and high claims rates.

Get your profile in order, keep your driving record and your credit report clean, and save as much money as you possibly can on your auto coverage. Find a low cost car insurance policy based on your particular driver profile.


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