Finding the cheapest company that provides car insurance coverage can feel like looking for a needle in a haystack. You know it’s there; it’s just not easily recognizable and jumping out at you. Cheap car insurance is out there but it’s a matter of knowing where to look and what exactly to expect from the insurer that helps drivers find the best rates.

Companies Offering Cheapest Rates
We can’t tell you just which company is going to provide the cheapest rates out of all of the competitors. What we can provide is some information on which companies are going to give you the lowest rates if you were looking at comparable policies from each one. It should be taken into consideration that there is a variety of policies that are offered from each company and discounts can be applied towards the final premium price. Not to mention the fact that in order for two drivers to be offered the same rate, they must have very similar driving histories, personal information and vehicle information. So, it is not productive to simply state which companies are going to give the lowest prices.

Having said all of that, there is a way for each individual driver to find out how much they could be paying for the policy of their choice by collecting quotes from a number of companies and comparing the prices one to another. An easy way to do this is by using our quote comparison tool, which collects data about the driver and in turn provides a list of quotes for policies. This application is quick to complete and free to use. Not many companies can offer something this useful the way we can.

The Cheapest Policy
The cheapest policy is going to be the one where only the state minimum requirements are purchased. This amount will vary from state to state since every state has their specified amounts and types that are needed. The more coverage that is added onto the minimum requirements, the more the policy is going to cost. This should not be taken lightly; it may be more beneficial to have full coverage at a higher price than minimal coverage at a lower price. When an accident is the fault of a driver, that driver is responsible to pay for the damages that have been caused. A car insurance policy puts the insurer in charge of paying for the cost to repair what has been broken, but only up to the amount that has been purchased by the policyholder.

The cheapest policy will not be able to pay for the expenses of a major accident because that total amount will exceed the minimum requirement of any state or liability policy. This will leave the policyholder left paying for the remaining balance of expenses, when they could have purchased more insurance at the beginning of the policy. It would probably be less expensive to carry more coverage than to have to pay for a major accident out of pocket.

Paying Less
Drivers who are looking to pay less for their insurance policy will automatically search for the lowest premium, but they should also be aware of the discounts they can receive if they qualify. By contacting the current insurer or possible future insurers, drivers will know what discounts are out there that with a few changes made in their life they could qualify for these savings. In some instance, no change will need to be made. Insurers offer price breaks for drivers who have a “good” standing or rating. Each company varies on the definition of a “good driver” where some companies claim a good driver to have only 1 ticket while others will allow a combination of an accident and a ticket. Good drivers will be granted great price cuts in their premium charge, so be sure to know what defines a good driver with your insurance provider and work on getting to that status.

Other discounts include the good student discount, senior citizen discount, and discounts for taking certain safety driver courses. To receive any of these, drivers must qualify with certain specifications, such as receiving high grades each semester, being over a certain age, or taking and passing a class that instructs drivers on ways to practice safer driving while on the road. Each of these options and more can be included in a policy and applied to lower the final cost of the premium.

Cheap Companies Determining Rates
Another way to find companies offering cheap rates is to have an understanding about how they determine a driver’s rates. Knowing what can be altered by the driver to lower their rates will help them save money when their policy is being renewed or when they are beginning a new policy.

Every company providing car insurance to drivers takes certain factors into consideration and compiles them together to form a level of risk for that driver. This level of risk is an indication of the likelihood of this particular driver being involved in an accident or some other incident that results in their filing a claim and the insurer needing to pay out for the damages to be repaired. Providers do not make a lot of money off of someone who is constantly requesting a claim to be paid, so the insurer increases this driver’s premiums. Even when damage has not been caused and no file claimed, the insurer will still increase the premium of a policy when only a speeding ticket has been issued. That speeding ticket is an indication of a lack in safety on the driver’s part, thus increasing their level of risk.

Factors that are considered when making the level of risk are the driver’s age and experience in driving, their gender, where they store/park the vehicle every night, and the driving history. Everyone knows that at some point people make mistakes, but by putting all of these factors together the statistical evidence helps the insurer know how much to charge the driver for insurance.

Cheap insurance companies are available online and can provide a great experience to drivers of all levels. online auto insurance can help drivers find these companies and start saving money on their own policies.