What is the Cheapest Car Insurance?
If you need car insurance, but you don’t want to have to spend a lot of money on insurance premiums, you may be wondering what the cheapest car insurance is. Some people will argue that there is no such thing as “cheap” insurance, but there are certain types of policies that are cheaper than others.
A Bond: The Cheapest “Car Insurance”
Some states allow drivers to post a bond instead of purchasing an insurance policy. A bond is not really insurance at all – it simply pledges a certain amount of money (usually the state’s minimum liability limits) to pay for the bodily injuries and property damage of other drivers, passengers, and pedestrians if you cause an accident. A bond offers you no protection, and may not protect you against being sued. The advantage of a bond is that it is typically much cheaper than a true insurance policy.
“State Minimum” Insurance
Aside from a bond, a “state minimum” insurance policy is the cheapest car insurance you can purchase. This policy is designed to meet your state’s minimum coverage requirements so you can legally drive. Typically, it only includes bodily injury and property damage liability coverages, which pay for injuries and damages you cause to others. Some states also require drivers to carry uninsured motorist coverage, which pays for your injuries and vehicle damage if you are hit by a driver who does not carry car insurance.
Full Coverage Insurance
A full coverage policy is not the cheapest car insurance, but your lender may require it if you are making loan or lease payments on your car. This policy includes the coverages of a “state minimum” insurance policy, but it also includes comprehensive and collision coverages. These coverages pay for fixing or replacing your car after an accident, regardless of whether you were at fault. It will also pay for your car if it is stolen, vandalized, or damaged in a natural disaster.
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