Car insurance is a necessary expense for drivers, but it can be a significant financial burden, especially for those on a tight budget. Fortunately, it is possible to find auto insurance under $100 a month. However, it requires some research and understanding of the factors that affect insurance rates.
Factors Affecting Auto Insurance Rates
Auto insurance rates vary depending on several factors, including age, driving record, location, type of vehicle, and coverage level. Younger drivers and those with a poor driving record are considered high-risk and typically pay higher premiums. The location also plays a role in determining rates, as areas with higher crime rates or more accidents tend to have higher premiums. The type of vehicle also affects rates, as more expensive cars cost more to repair or replace. Finally, the level of coverage chosen by the driver affects the premium, with higher coverage levels resulting in higher premiums.
How to Find Auto Insurance Under $100 a Month
Finding auto insurance under $100 a month requires some effort, but it is possible. The first step is to compare quotes from different insurance companies. Many companies offer online quote tools that allow drivers to enter their information and receive a quote instantly. It is essential to compare quotes from several companies to ensure that the price is competitive.
Another way to lower insurance rates is to choose a higher deductible. A deductible is the amount that the driver pays out of pocket before the insurance company pays for damages. Choosing a higher deductible can lower the monthly premium but also means that the driver will pay more out of pocket if an accident occurs.
Drivers can also take advantage of discounts offered by insurance companies. Many companies offer discounts for safe driving, good grades, multiple policies, and other factors. It is essential to ask about available discounts when obtaining quotes from insurance companies.
Cheap Auto Insurance Companies
Several insurance companies offer auto insurance under $100 a month. According to CarInsurance.com , the cheapest companies for 50/100/50 liability-only coverage are:
– USAA: $369 per year; $30.75 per month
– Erie: $386 per year; $32.17 per month
– Geico: $423 per year; $35.25 per month
– Auto-Owners: $445 per year; $37.08 per month
– State Farm: $545 per year; $45.42 per month
– Nationwide: $589 per year; $49.08 per month
It is essential to note that these rates are for liability-only coverage, which is the minimum required by most states. Drivers who want more coverage will pay higher premiums.
According to ValuePenguin , State Farm is the cheapest national car insurance company, at $41 per month for liability-only coverage. However, rates vary depending on the driver’s location and other factors.
Finding auto insurance under $100 a month is possible, but it requires some effort and research. Drivers should compare quotes from different insurance companies, choose a higher deductible, and take advantage of available discounts to lower their premiums. It is also essential to understand the factors that affect insurance rates and choose the appropriate coverage level for their needs.