Which gives you cheap car insurance - comprehensive of collision coverage?

The Quest for Cheap Car Insurance

Cheap car insurance is a term we hear often, mostly in the form of SPAM emails or pesky pop-up internet ads. Let’s look past the superficial irritation. Car insurance is one vehicle expense that often ends up on cruise control, making affordable auto insurance seem elusive.

How can we get and keep low-cost insurance?  For many, the answer is right under their noses.

The Purpose of Car Insurance

It’s important to understand why car insurance is a necessity in the first place.

The purpose of insuring a vehicle is to protect us from the costs of unexpected events such as accidents, theft or damage.

There are two basic types of car insurance. Collision insurance covers vehicle repair or replacement costs resulting from an accident that occurred while the vehicle was driven. Comprehensive insurance pays for damage to our vehicle when we are not driving it, including damage from theft and weather-related incidents.

A policy deductible is an overlooked part of car insurance. Often cheap auto insurance has a lower monthly payment, which means a higher deductible.  

This means smaller incidents can be more expensive. For example, a fender bender cost of $2,200 with a $1,500 deductible will mean $1,500 out-of-pocket expenses are due before the insurer pays the remaining $700.

Cheap Car Insurance May Be Right Under Your Nose

Car insurance often ends up on “cruise control.”

As the owner of a 2001 Mitsubishi Montero Sport, I am guilty of this. Being with the same car insurance carrier for years, I was paying a higher rate for insurance when the vehicle was new. Over time, my rate lowered slightly, but I did not review my policy for several years.

After reviewing my policy, I discovered I was able to lower my car insurance considerably with a slightly higher deductible than previous.

Putting car insurance on ”cruise control” can be expensive in the long run since our needs change over time. In the end, the quest for cheap car insurance is a continuous one.