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What is the cheapest car insurance company?

What car insurance company provides the cheapest rates? It would be the answer to a motorist's dream if there was one car insurance company that provided low rates to every consumer each time he or she needed to purchase a new policy. Unfortunately, there is not an easy answer to that question. While a friend or acquaintance may be offered a low rate on their premiums by one particular insurance provider, the same insurance provider may not extend the same rate to you. Your personal characteristics are weighted against the national claims average for other motorists who share similar traits. Because of this process, a motorist's insurance premiums are individualized. No two policies can exist at the same rate based on a person's individual record.  

The factors that an insurance company considers when determining your rates include your driver's license record, your gender and age, your vehicle (age, mileage, make, color, etc.), and the types of coverage you wish to have. It is to your advantage that there is a quick and effective tool that can assist you in locating affordable rates on your insurance. There are websites available that enable you to receive a quote on your car insurance. Upon entering your zip code and answering a brief questionnaire about your personal statistics, you can receive multiple quotes from multiple carriers on the policy you wish to purchase. This method of comparing different rates is usually free and takes only a few moments of your time.  

The most common form of coverage for a motorist is called liability insurance. Currently, forty seven states in the country require you to maintain some minimum form of this coverage. Liability insurance offers protection in the event that you are involved in an accident for which you are at fault. It will provide payment for the medical expenses and property damage repair costs other motorists involved in the accident may incur. However, it will not provide for any expenses you may incur for yourself. The monetary amounts of coverage you are required to maintain vary by state. However, it is important to be mindful of the fact that a state's required minimums may not be efficient in providing for all the financial costs you can accrue in an accident. Therefore, it may be wise to investigate the option of purchasing higher amounts of coverage in your policy. This will allow you to enjoy a more thorough level of protection.  

Collision insurance is another common form of coverage. If your vehicle is involved in a collision, your insurance provider will assume the cost associated with repairing your vehicle. However, the amount of money than an insurance company will put forth towards fixing your car will not exceed the current market value of the vehicle. You are required to have this form of coverage if you own a car with an outstanding balance on it. There are many other forms of optional coverage available to a motorist, such as comprehensive insurance or GAP insurance. By educating yourself about your state's requirements and your own personal needs, you will be better equipped to select a policy that meets your needs from your vehicle insurance quote.


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