Although it may not be ideal, purchasing the cheapest, bare minimum auto insurance plan is certainly better than not buying insurance at all. One of the best ways you can keep the cost of your auto insurance down is by simply avoiding accidents as much as possible. Of course, there are some accidents that are inevitable; however, paying close attention to the road and taking extra care to follow traffic laws makes a whole world of difference. Your insurance agent will also look at factors such as the neighborhood you live in and your home's availability of a garage. Areas with high crime rates and no garage access will have to pay higher rates because they are at a greater risk.
Before just signing up for the cheapest auto insurance plan, you will want to consider your unique situation first. For example, your auto insurance agency will look at the model of the car as well. If you drive a super fast sports car, this could make you pay higher rates. You will also want to look into your state's laws concerning fault and no-fault insurance as well as liability coverage. This is arguably the most important factor for coverage since you may not care about the damage done to your vehicle, but it's not always certain that the other party involved in the accident will share your same ambivalence.
Furthermore, many of the cheapest auto insurance plans will usually cover collision costs as well, which would include any damage that may result from an accident. Before settling on an inexpensive auto insurance plan, you should also consider your current financial situation. Are you in a fairly secure financial situation where an unexpected accident could be compensated for with the money you have saved up? If not, you should probably consider plans with a bit more coverage just to be safe.
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