When it comes to buying auto insurance, it’s natural to want to get the lowest cost possible. But as the saying goes, you get what you pay for – and that low-cost auto insurance may end up costing you more in the long run.
Minimum coverage isn’t always enough
On paper, the advantage of buying car insurance at a lower rate seems clear: You will have lower monthly premiums and that means more money in your pocket. But lower costs usually equal lower levels of protection, higher deductibles and increased personal liability in the event of an accident.
One common way to save money is to go with your state’s minimum liability coverage – but that can be a costly error. Although you are covered legally, minimum coverage isn’t going to be enough to actually cover all the expenses incurred by an accident.
Getting the best affordable auto insurance
Instead of only looking at the most affordable possible coverage, you should look for the car insurance that provides you with the necessary protection in your price range. Talk with your insurance agent about what you would have to pay out of pocket if you were in an accident, and let that inform your choice. Look for a plan that is still within your budget but will ensure you are well covered if you do have an accident.
Many different factors affect your insurance rate, from your age to where you park your car at night. While you can’t change all of those things, you should look at what you can change to reduce your rates. Rather than looking for the lowest-priced insurance, you should consider looking at what is increasing your insurance costs.
For example, certain cars cost more to insure, and they may also cost more to maintain. If you need to save money, look at whether switching to a different car could help you.
Review your options
Because your circumstances can change over the course of a year, it’s a good idea to meet with your insurance agent every six months to review what has changed and how that can affect your rate. Things such as changes in how far you drive to work each day, keeping your driving record clean and even an improved credit score can all work to your advantage when it comes to your insurance rate.
Finally, make sure you ask about discounts. Nationwide offers a variety of discounts to help you get the best car insurance at the cheapest price. That can include things such as taking defensive driving courses, multi-policy discounts, accident forgiveness, keeping mileage low or even belonging to certain professional groups.
Rather than cutting back on coverage, you should work with your agent to see how you can use discounts to get the coverage you need at a price that’s right for you. That’s how you get the best car insurance at the best price.