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Best Cheap Car Insurance For 2020

Drivers want protection for themselves and their vehicles in case they get into an accident. Still, they prefer it to be as cheap as possible. How much coverage should you buy to fulfill all of your driving needs? Is there anything you can do to reduce overall auto insurance expenses?

Best Cheap Car Insurance For 2020

The coverage level might vary from place to place because it depends on what each state has established as the minimum requirements that a driver must cover. You can, in most instances, go with the minimum coverage. This will undoubtedly save you some money, but it might not necessarily be useful in case of an accident. In a serious crash with bodily injuries, a liability-only policy could end up costing you some serious money.

Each unique circumstance often needs a different type of coverage. You might have a new car that needs comprehensive coverage and own another vehicle that is rarely driven, and is more than 10 years old, which only needs state minimum liability coverage. This is why it’s vital to do thorough research before you buy a policy. You should know precisely what is the appropriate amount of coverage for your vehicle and your specific needs. You should also find an insurance company that provides a zero down policy tailored to your particular situation.

Six Basic Types of Auto Insurance Coverage

  • Liability– This protects against damage during accidents where you are at fault. It falls into two categories whose names speak for themselves: property damage and bodily injury. You can select coverage starting from several thousand in protection, up to $500 thousand dollars or more. Higher coverage could provide more protection against additional out-of-pocket charges when an accident happens.
  • Comprehensive – It covers the insured vehicle in circumstances where the driver is not responsible. For example, in case of fire, theft, vandalism, collision with animals or after acts of nature.
  • Underinsured/Uninsured motorist – This covers you and the insured car in case of a collision with a driver without insurance.
  • Personal Injury Protection (PIP)– It pays your medical bills and those of your passenger, no matter who is at fault for the accident. PIP also covers the loss of incomes derived from a collision. This kind of insurance is mandatory in some states. You should check if your state is one of them.
  • Medical expenses – This coverage also pays for your and your passengers’ medical bills. It is not as complete as PIP because it would not cover the loss of income.

The most important coverages of all are liability, comprehensive, and PIP. All three cover almost every circumstance you might be in when you’re involved in a crash. Paying for the six types of coverage could be extremely costly, especially for young drivers or those that are deemed, high-risk motorists. Get the cheapest direct quotes online for the coverage you need. Start by entering your zip code.

Five Important Details Concerning Cheap Car Insurance

  1. Discounts are vital to keeping your car insurance premiums down. The more options your provider offers, the lower your cost will be.
  2. Car insurance providers may have different discounts in each state.
  3. Pay-as-you-drive insurance could be the best solution if you don’t drive your vehicle as often.
  4. There are a lot of elements on which auto insurance premiums may depend. Obviously, these factors can vary from driver to driver.
  5. Compare quotes online for the coverage you need and save 30% or more.   

Getting the Best Affordable Auto Insurance Possible

There are several elements you can control if you want low-cost auto insurance. These include your credit score, driving records, coverage level, and the deductible amount. Some things are out of your control, like your age and gender, marital status, and where you live.

If you could only manage the level of coverage you will purchase, what could you do to get affordable auto insurance? To ensure secure cheap coverage, you can explore two options: check out the several discounts your insurance company offers and see if they provide usage-based insurance options. You can also raise your deductible to $1,000 or higher. This will save 20% with some insurers.

Usage-based Coverage

Usage-based insurance could work in two ways. It could bring you serious discounts, from 20% up to 30% off your total premium. Or it could charge you based on the miles driven. In both cases, your privacy would be compromised because the car insurance company has to track your vehicle’s location and study your driving habits as long as you’re under usage-based auto insurance.

To gather this data, providers could use a telematics device known as a black box that you plug into your vehicle. They could also do it through an app that you can install on your phone. There are some things to be careful of to guarantee the best discounts. This includes the number of miles you drive, whether you drive during the day or night, unintended or hard stops, speed limit violations, among others. In short, the safer driver you are, the lower your premiums will go.

Kinds of Usage-Based Auto Insurance

There are two types of usage-based coverage: PAYD and PHYD:

  1. Pay How You Drive (PHYD): This determines the number of discounts you would receive for your driving behavior and location. The driving habits that providers take into account are your vehicle speed, fuel level, tire pressure, and travel distances.
  2. Pay As You Drive (PAYD): This only considers how many miles you drive per day. Your costs will be based on the number of miles you have driven in a month. Besides, regardless of whether you drive your vehicle or not, you will pay a standard monthly fee.

Who Would Benefit from each Type of Usage-Based Coverage?

Usage-based insurance is now a popular option offered by car insurance companies. But who is each of these types of insurance suitable for?

  • PAYD is a highly recommended option for senior drivers, students, and anyone who hardly drives their vehicle. With PAYD, you’ll pay a standard monthly rate plus a charge that depends on how many miles you drive per day. Generally, the cost of mileage rates is approximately 150 per day maximum. Therefore, if you drive more than that, you usually don’t have to pay extra money.
  • PHYD only works with your driving behaviors instead. So, the more cautious you are behind the wheel, the more significant discounts you’ll get. This type of coverage is perfect for people with real possibilities of maintaining an excellent driving record.

Available Discounts You Should Try and Get

To get as many discounts as possible, we have considered auto insurance companies that offer at least 11 discounts. Many discounts on your premium could deliver savings of 1% to 3%. However, you could be able to find some discounts that save up to 30%. You should be aware of discounts available, and the percentages may vary widely from state to state. Therefore, you should always contact the companies you are considering to find out what discounts they offer in your state and how much savings these discounts would bring you.

Also, a company website might not show some of their discounts for many reasons. It could be a new discount, a discount you should get over the phone, or a simple oversight of the company when adding discounts. Because of this, it is always recommended to contact auto insurance providers to check if there are any unseen discounts you may be eligible for. Don’t be afraid to ask. The phone representatives have all the possible information about the discounts offered by your company. They could give you all this info and also an estimate of how much money you could save overall.

Telematic Systems

How does your company know the number of miles you drive per day and your other driving behaviors? Car insurance companies work with telematics devices. It could be a device you should plug into your vehicle or an app installed on your phone. This will keep track of the necessary elements and send the information to the company for analysis. The less and more cautious you drive, the higher your savings.

All telematic devices must be adjusted to your vehicle. This procedure could last three or four weeks. So, you should be patient if you really want to receive the advantages of usage-based insurance.

Extra Coverage and Other Benefits

The discounts and several coverage options provided by auto insurance companies are excellent choices, but could you get more from them? Typically, insurance providers may offer more opportunities. Therefore, we have searched for companies that have found a balance between discounts, usage-based insurance, and the added benefits that they could provide for free or at affordable prices.

These additional perks could be unusual discounts, like hybrid vehicles and military discounts, along with extra coverage such as rental vehicle coverage, travel expenses, ridesharing, and roadside assistance. Other benefits could include rewards programs with rewards per month or per year, for example, Progressive’s accident forgiveness.

Beware of Price Optimization

Price optimization is one of the most negative trends you can find now in the vehicle insurance market. It’s been banned in 20 states across the country since early 2020. The primary goal of price optimization is to benefit clients who don’t frequently change their insurance providers. With this, companies gather personal information about you that is not precisely related to your driving behaviors.

This data may include the list of websites you have recently visited, your shopping habits, your social media entries, and your online mail subscriptions. With all this, insurance companies generate an algorithm that calculates the probability that you will leave drop the company and sign with another provider.

This probably seems invasive because, in fact, it is. And, to top it off, if the algorithm determines you are likely to stay with the company, they will exploit your loyalty and start raising your rates little by little, monthly, or annually. If your premium increases without a valid explanation, you should contact your car insurance provider instantly and ask for clarification.

Now that you know how to get the best cheap car insurance for 2020, get a free online quote. Start comparing rates in about 5 minutes and see all the discounts you qualify for. Get started by entering your zip code and lower your premiums in 2020.