Affordable Car Insurance + Good Policies
Senior Home Loan Advisor
Caitlin Chen
Published on January 12, 2021

Affordable Car Insurance + Good Policies

Let’s face it, with cities growing and expanding quickly, it’s important to have your own transportation. In fact, a lot of companies even require it for work. Gas prices are high, and car maintenance adds up as well. Plus, you must consider the right car insurance to fit your needs. There are a number of affordable insurance options, but you have to be careful to get a good policy.

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So how can you find the most affordable car insurance that still works for you when you need it to? We know this isn’t exactly easy, so we want to provide you with a few tips on what to keep in mind when you start looking into different companies and policies.

Know The Details of a Policy

Not a lot of people know this, but it is possible that you might be overpaying for your car insurance simply because you aren’t being specific enough with your policy. Some people need more specific features in a policy than others, but lots of people might end up paying for specific insurance plans they don’t need by default.

For example, your insurance plan might assume you tend to drive minors around and so it makes that liability a part of your insurance plan. If you don’t think you will be driving minors around, then you might be able to pay a little less for your insurance plan. The same goes for how much you drive on a daily basis or what environment you live in. It’s good to be aware of the small details of your insurance plans when trying to find the cheapest car insurance. For example, if you do not drive very far on a daily basis, you might consider insurance providers like Metromile. With Metromile, you are charged a base rate plus a per-mile rate based on the number of miles driven each month.

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Assess the Different Providers

When it comes to getting your own car insurance, you might immediately go for familiar brand names you’ve heard of or whatever insurance plan your friends or family have. However, what works best for them might not be what is best for you. In the end, you might pay for a subpar plan or overlook more affordable options.

For example, if I was using the providers my friends and family were, I would’ve chose Mercury or State Farm. However, I would have overlooked Metromile, which is a better plan for me since I drive shorter distances than my friends and family. Of course, you probably don’t need to go through every insurance available, but shopping around is a good idea.

Liability or Comprehensive?

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It is important to weigh in the main two car insurance options available: liability or comprehensive insurance.

  • Liability insurance refers to plans that solely cover the damages that result from collisions and accidents. This means that it covers costs related to any property damage to the vehicles involved in the accident, as well as any injuries that might have stemmed from the accident, but nothing beyond that.
  • On the other hand, comprehensive plans cover more than just accidents, taking in the specifics of your situation, vehicle ownership, and potential damages beyond just collisions.

Usually, you can save money using liability insurance when you fully own your vehicle. But, if you are leasing it or still owe a significant amount on the car, you probably want to get a comprehensive plan, and in fact, your loan provider may require this. This is important so you avoid being liable for the unpaid value of the vehicle if the vehicle is a total loss in an accident.

Final Thoughts

While you can ask friends and family for recommendations on auto insurance, keep in mind that they may have different policy needs. So before you purchase car insurance, make sure to shop around with a few insurance providers, and also know what you specifically need in a policy.

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Senior Home Loan Advisor
Caitlin Chen Senior Home Loan Advisor
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(213) 248-1230