Things to Know About Low-Cost Car Insurance
Low-cost car insurance can be a smart way to save money, but it’s important to understand what you’re getting before choosing a policy. The cheapest option isn’t always the best, especially if it leaves you underinsured or unprotected in an accident. Knabusch Insurance provides the same in Monroe, MI and surrounding areas.
First, know what coverage types are required in your state. Most states require at least liability insurance, which covers damages or injuries you cause to others. However, liability-only policies do not cover your own vehicle. If your car is newer or financed, you may need collision and comprehensive coverage as well. Collision covers damage from accidents, while comprehensive covers non-collision events such as theft, fire, or weather damage.
Second, the cost of insurance varies widely depending on your age, driving record, vehicle type, location, and credit score. Drivers with a clean record, good credit, and safe driving habits usually qualify for lower premiums. You can also reduce costs by increasing your deductible—the amount you pay out of pocket in a claim—but make sure you can afford that amount if an accident occurs.
Third, discounts play a big role in lowering rates. Many insurers offer savings for bundling auto and home policies, maintaining good grades (for students), completing defensive driving courses, or installing anti-theft devices. Always ask your insurer about available discounts before purchasing a policy.
It’s also wise to compare quotes from multiple companies. Online comparison tools make it easy to review prices and coverage options side by side. Don’t just focus on the monthly payment—check customer reviews, claims satisfaction ratings, and financial stability to ensure you’re choosing a reliable provider.
Lastly, read the fine print. Some low-cost policies come with restrictions or higher out-of-pocket expenses that can add up over time. The best approach is to find a balance between affordability and adequate protection, ensuring you’re fully covered without overpaying.
Please reach out with any questions you might have, and we will be happy to help.