Finding The Cheapest Car Insurance

There are usually many factors that are involved when an insurance provider is determining the premiums on your policy. Where you reside may also be a deciding factor on obtaining the cheapest car insurance. Some states usually have a required amount of coverage that a driver must obtain for their policy.

One of the ways a driver may be able to purchase the cheapest car insurance is just by purchasing the state minimum liability coverage. You will usually need to research your state to find out their specific requirements for drivers. Currently, most states will usually require their driving residents to have liability coverage.

Liability coverage is used to cover the costs to people and property damage that occurs from a collision that is determined to be your fault. While purchasing only liability coverage may provide you with the cheapest car insurance, it may put you at financial risk later. If you are involved in a collision and your medical expenses or property damage is more than your insurance payout, you will need to pay the difference out of pocket.

Drivers that have an older vehicle or a vehicle that doesn’t hold much value will choose to cancel the collision and comprehensive coverage from their insurance policy and only purchase liability coverage, because they are usually comfortable with the financial loss of their vehicle. People with medical insurance will usually choose to not purchase a medical policy on their auto insurance, as their medical expenses will usually be covered with their private insurance.

Generally, each state differs on their requirements for how much liability their drivers must have. Currently, the lowest liability coverage auto insurance is 10/20/10. The states that require their drivers to obtain this low liability coverage is Florida, Louisiana, and Oklahoma. If you are searching for cheap auto insurance for your teenage driver, please read “Cheap Car Insurance for Teenagers is Not a Myth”.