Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 21, 2020

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Key takeaways...

  • Auto insurance rates change all the time and for many different reasons
  • The cheapest policies that are available on the market only cover the state-required minimum insurance
  • Consider your options carefully when buying cheap car insurance

Finding cheap auto insurance can be difficult to do, but there are a lot of choices available to consumers who are looking for lower rates than what they have now. In fact, consumers can choose from a variety of levels of coverage.

It is essential that anyone who needs to save money on their auto insurance to keep a few things in mind, however.

The fastest way to receive FREE car insurance quotes is to enter your zip code above in our car insurance comparison tool.

Table of Contents

Cheap Insurance Doesn’t Last Forever

In fact, many of the high rates that are advertised to people who need to save money on their car insurance only last for a few months before the company raises their prices. In some cases, the rates can increase by as much as several hundred dollars.

Even if the rates do not go up on their own, a lot of these cheap policies are set to rise substantially as soon as the insured person is in an accident in which they are at fault.

Sometimes, these cheap policies will even drop a driver immediately after their first accident, leaving them without car insurance.

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Cheap Insurance Usually Only Covers the Minimums set by Your State

It surprises a lot of people when they discover that they might still have to pay out of pocket after they are in an accident. This is because the state minimum coverage was often set decades ago.

However, these minimums often do not cover even the damage that can be caused by a so-called medium sized accident. This means that anyone who causes an accident like this could potentially be stuck with paying the bills for it out of their pocket.

Without any savings to pay these bills from, some states will allow the injured parties to force the driver to sell his or her assets and garnish his or her paycheck until the bills are paid.

Simply increasing the coverage that you have on your auto insurance can help you to avoid this problem.

Fortunately, increasing coverage limits typically only costs a couple of dollars more a month, making it possible for a driver to get good protection for a small price.

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You May Not Have the Cheapest Insurance Available

Auto insurance rates change all the time and for many different reasons. The most expensive policies are typically the ones for young people and people with a couple of accidents recently on their record.

Unfortunately, many cheap auto insurance companies do not automatically give these discounts to their policyholders as soon as they qualify for them. For this reason, it makes sense to shop around at least once a year.

At the very least, check auto policy rates when you turn 25, get married, or whenever you have an accidental fall off of your driving record.

A Cheap Policy may not Give you Enough Coverage.

The cheapest policies that are available on the market only cover the state-required minimum insurance. These plans will just pay out to the victims of an accident. They do not provide any coverage to the insured person.

These standard policies provide no coverage if a vehicle is vandalized, damaged, or stolen. Because of this, many people decide to purchase a collision and comprehensive policy.

These policies will only cost a little more than the cheapest auto insurance, but they provide coverage that many people will appreciate if they are in an accident.

Enter your zip code below and we will help you in your car insurance search by sending you multiple car insurance quotes for FREE!

References:

  1. https://www.esurance.com/info/car/why-car-insurance-rates-increase
  2. https://www.iii.org/publications/insurance-handbook/insurance-basics/auto-insurance-basics
  3. https://www.statefarm.com/insurance/auto/resources/getting-married
  4. https://www.thebalance.com/keyed-car-and-vandalism-insurance-claims-527101
  5. https://www.allstate.com/tools-and-resources/car-insurance/what-is-collision-insurance.aspx
  6. https://www.statefarm.com/insurance/auto/coverage-options/comprehensive-coverage