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Cheap Car Insurance: When Is It Worth It and When Are You Losing Out?

Minimum car insurance coverage requirements vary from state to state. For example, Florida requires a $10,000 property damage liability per accident and $10,000 personal injury protection. 

While this is the minimum required, some people may opt to have a car insurance plan with a lot more coverage. But, if you’re trying to save money, there are some circumstances when the minimum is more than adequate. 

Keep reading to learn when cheap car insurance is worth it and when you may need to spend a little more. 

When to Consider Cheap Car Insurance

There are many different companies advertising cheap car insurance online. There are certain circumstances that make a cheap insurance plan a good idea. 

First and foremost, look at how frequently you drive. If you work from home, you drive a lot less than the average person. The odds of you getting in a wreck is lower because you’re not on the road as frequently. 

Also, consider dropping full coverage if you drive an older or cheap vehicle. You won’t need as much coverage to cover the cost of a full vehicle replacement if you get into an accident. 

Many parents also search for cheap car insurance for teens. Since teens typically cost more to insurance already, they’re willing to lower their monthly bill by lowering the overall coverage. 

When to Opt for More Expensive Coverage

Some people may need to settle for higher car insurance costs based on their lifestyle and driving habits. 

If your job requires a lot of daily driving, the odds of getting in an accident are higher. And, this also means that you depend on your vehicle to help bring in an income. Because of these facts, you’ll want to opt for a more expensive car insurance plan with better coverage. 

Are you a car lover with multiple high-dollar vehicles sitting in your garage? If so, you’ll want to protect these assets with the best insurance plan possible. A general rule of thumb is that if you don’t have enough cash sitting in your bank account to replace your vehicle, you’ll want an insurance plan to fill in the gap. 

Ways to Lower Your Car Insurance Rates

Now that you’ve chosen the amount of coverage you want, it’s important to shop around for the best car insurance quotes. You’ll want to learn more about car insurance companies and how you can get a better deal. 

Many insurance companies offer safe driving discounts. The longer you go without an accident, the better deal you can get. Some companies also have safe driving trackers, that offer you discounts based on your real-time driving habits. 

In addition, consider bundling your car insurance with other insurance policies for a discount. You could save money by having your home, life, and car insurance all through the same company. 

Drive Safely and Responsibly

After reading this article, you now have a better understanding of whether you should opt for cheap car insurance or not. 

If you don’t drive frequently or have a relatively inexpensive vehicle, you could benefit from a cheaper plan. But, if you are on the road a lot or have a highly valuable vehicle, you should probably opt for a full-coverage plan. But, just because you have a full-coverage plan, it doesn’t mean you can’t take further steps to lower your monthly bill. 

Looking to save money in other areas of car ownership? Head to the DIY Auto Repair section of this site to help you avoid a costly mechanic bill.