How can shoppers know they’re getting the cheapest car insurance?
All things equal, the best car insurance rates typically go to those with the highest credit scores. The logic being higher scores correlate with lower chances of filing claims. Less claims result in cheaper rates. There are, of course, some caveats. Insurance scores are not exactly the same things as credit scores. Unlike credit scores, insurance scores also consider: age, gender, address, marital status, and occupation. Auto insurers in California, Hawaii, and Massachusetts cannot use credit scoring for auto insurance. In Washington state, insurers are forbidden from denying coverage solely on the basis of credit score.
What are some areas of coverage where shoppers can specifically save on car insurance?
As your vehicle gets older and miles start to build up, at some point it won’t make sense to carry comprehensive coverage. Comprehensive gives you money to pay for theft and/or damage to your vehicle caused by weather, fire, vandalism, etc. What many people fail to realize is the maximum comprehensive payout cannot be greater than the value of the vehicle.
Are there any drawbacks associated with selecting the cheapest car insurance option?
With car insurance you get what you pay for. The cheapest premiums offer the lowest coverage. A liability-only policy with limits of 10/20/5 ($10,000 per person and $20,000 per accident for bodily injury, and $5,000 for property damage) could cost hundreds of dollars less per month than a policy with higher limits which also includes collision and comprehensive coverage.
View more information: https://www.fool.com/the-ascent/insurance/auto/best-cheap-car-insurance/