To get cheap auto insurance, there are a few factors you can control, such as your credit score, driving history, amount of coverage, and exact deductible amount. But there are also factors that you cannot control, such as age, gender, marital status and place of residence.
So if you can only control how much coverage you buy and a few factors that companies take into account when determining premiums, how can you secure cheap auto insurance for your car? You can do this by looking for two things: how many discounts each company offers, and whether or not they have usage-based insurance options available.
Usage-based insurance rewards you with steep discounts, ranging from 20 to 30% of your premium, or charges you a mile. Either way, you are putting your privacy in the hands of the company, as they can track the location of your car and / or your driving habits as long as you subscribe to this type of insurance. How do companies collect this information? Using a remote communication device, called a black box, that connects to your car, or through an application that you install on your phone.
There are two types of insurance depending on the use
- Payment Method Insurance (PHYD) - This insurance uses your driving habits and location to determine how much deductible you will get. Habits include vehicle speed, fuel levels, tire pressure, and flight distances, among others.
- Pay-As-You-Drive (PAYD): It only takes into account the mileage you drive per day and charges you what you pay per month. You also have to pay a standard monthly fee, regardless of whether or not you drive your car.
Here we break down the options of 6 national brands and affordable auto insurance options:
- Progressive: best for students
- State Farm: Best for Car Rental Options After an Accident
- Liberty Mutual: Best Opponent Lineup
- Root: best for safe drivers
- Travelers: Best for Hybrid Electric Vehicles
- Geico: Best Annual Rates
- Quotation wizard: the best Marketplace
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