Want Cheap Auto Insurance? Drive a Clunker: All of the auto insurance companies want to tell you that the best way to get cheap auto insurance is to switch over to their products. While pricing can differ significantly between auto insurance providers, the fact of the matter is that there are much quicker ways to save money on your premiums. In fact, your choice of company is only one of several important factors that go into getting cheap auto insurance.

What’s the most important thing you can do to get cheap auto insurance? Well, it depends on how committed you hare to saving a buck, but it starts with your choice of car. Driving an old clunker is going to cost you significantly less on your premiums than driving the new hotness.

Now, before you run off and dismiss this idea altogether, consider this: if saving money is your thing, a clunker is the way to go. Here are some ways that driving a rust bucket will save you some money:

• They don’t depreciate as quickly. A new car drops in value by around 20 percent the day you drive it off the lot. It loses another 10 to 20 percent over the next two years. A clunker doesn’t have that far to go, so you don’t have to worry about it losing value.
• You can pay cash for a clunker. Car loans – even when you get a decent interest rate – cost you money. When you pay cash, you pay once and you’re done.
• You save on auto insurance. Not only do you save based on the car itself, but you don’t have to pay for full coverage if you don’t want to. You can get pretty minimal coverage on a rust bucket.
• You don’t have to worry about making minor cosmetic improvements. Your clunker already has plenty of scrapes and dents, what are a few more going to hurt?
• Sine clunkers get decent gas mileage. Sure, the average MPG today is higher than in years past, but there are many older cars that do just fine. Add to that the fact that you’re keeping another car out of the landfills, and you can feel plenty self-righteous about your contribution to the environment.