When it comes to budget management, there are actually wide arrays of aspects to count. It is more crucial considering the fact that American household averagely indebted $15,355. Among those aspects, car insurance is one of the most concerned. Actually car insurance prices monthly vary, depending on many factors. Some of which are the car insurance that you buy, driving record and credit score. Some car insurance will also consider your age and how long you have been driving.
Needless to say, many people out there do not comprehend this aspect. The fact that people can get cheapest monthly insurance for their car makes it necessary to find out how to deal with that. Aside from considering the factors, you also need to get as much information related to monthly insurance cost by area. Thus, it enables you to get car insurance cost under $100 per month.
Getting Affordable Car Insurance Prices Monthly
You do not need to be insurance expert to get cheap insurance cost not exceeding $100 each month. Without using any calculator, you can get affordable car insurance prices monthly. All you need is to find out the aspects to help you minimize the price. Apply these and get rid of expensive car insurance cost.
1. Own your car
No matter how good you are at driving, you will not get the best car insurance price if you still have remaining car loan. It is necessary to fully own your car, which means you are not in a responsibility for car loan. It makes sense because the lenders will require you to deal with comprehensive or collision insurance on vehicles that have not yet paid off.
2. Avoid asking SR-22
SR-22 is known as a form commonly required by some states in case you have bad driving record. This form will prove your financial responsibility. In insurance field, SR-22 is black mark that needs to be avoided whenever you want to buy insurance. Once you are required to get SR-22, do not expect to get affordable car insurance prices monthly.
3. Make good insurance record
People with good insurance record are most desirable. Whether it is about no past claims or no lapse in car insurance coverage, it is important to keep your good record. You want it or not, insurer will always consider your insurance history. People without claims in the past are considered as the most desirable customers. Otherwise, if you have problem at paying bills, the insurer will need more time to approve your insurance application. If they do, you will have high insurance cost.
4. No driving violation
Having slight similarity to the insurance record, it is also necessary to keep your driving record. Any kind of driving violation will affect your car insurance prices monthly. The insurer will determine whether or not you are a high risk driver. People who violate driving law typically get higher cost to pay each month. Otherwise, people with clean driving records are the favorite of insurers.
5. Mind your credit score
People make mistake when thinking that credit score has nothing to do with car insurance. In fact, the insurer will take the credit score into account. In many states, insurers use your credit score in making your insurance price. Based on some data, people with high credit score—650 or above—have higher chance to get cheap insurance price for each month.
Car Insurance Prices Monthly by States
Some states apply different pricing policy for car insurance. Using car insurance cost calculator, the buyers can find out the best rate for their vehicles. There are various car insurance rates from different states; with assumption the buyers have clean driving record and good credit score. Based on the data, all states except Michigan have car insurance price under $100 each month. Begin with Alaska, the average minimum annual rate is $318 with car insurance prices monthly is $27.
The following state is Alabama which has higher annual insurance rate compared to Alaska with monthly insurance cost as low as $35 and annual rate is $419. Meanwhile, Arkansas is between Alaska and Alabama with $33 of monthly insurance rate and $397 annually. Florida is noted to have the highest insurance rate, which is $74 with $884 annual rate.
From the data above, it can be concluded that some states in the U.S. still have rather low car insurance prices monthly. However, another question emerges as some insurance company now starts to offer short term insurance. Will the short term offer lower price compared to annual insurance? Known as monthly car insurance, it allows you to buy short term insurance policy to cover you. This is actually an alternative to people who do not want long coverage. But, will it be cheaper?
Actually car insurance prices monthly depend on the insurance and coverage that you buy. Typically, short term car insurance is only beneficial if you want short term of coverage. Otherwise, annual insurance is still the best option for longer coverage. Based on some insurance company that offers monthly insurance, they offer quite higher price for monthly payment. At the end, the total payment ends up higher than annual insurance.
Nevertheless, it does not mean short term coverage is not recommended. Some insurer makes policy stating that the buyers have to pay full premium once they make claim. It sounds not really good because you are insisted to pay high amount of money even if you cancel the claim. Therefore, it is also important to check their policy.
In conclusion, car insurance cost varies depending on pricing policy issued by the insurance company. Even though they have specific policy, you still have chance to get the best rate and affordable price for the vehicles. Pay attention to the factors that affect the price before choosing certain insurer. Besides, make sure you understand the policy related to pricing and things that will increase car insurance prices monthly. Making yourself desirable customer will help you get the best price.