Car Insurance For Less Than $100 a Month

Do you need car insurance under $100 a month? Many drivers can get their vehicle covered for under $100 a month, but it will require a little effort on your part. There’s a reason for this. Multiple factors are used to calculate your car insurance rate. You have control over some of these things, such as what kind of car you drive and what type of coverage you select. Other things you don’t have any control over. These factors include your age, where you live, or your marital status.

Here are some tips and valuable strategies to help you find auto insurance under 100 a month. Get insured for less while still maintaining quality coverage. You can fill out a free quote application and compare rates from ten or more companies at any time.

Get Cheaper Liability Car Insurance

Except for Virginia, all states require that drivers, at the least, carry state minimum liability coverage limits. The minimum amount of liability protection required differs from state to state. You should be aware of the coverage needed in your state.

Liability coverage is often available for as little as $50 to $100 a month, depending on the type of car you are insuring and your driving record. Drivers meeting certain conditions may even secure liability-only policies for under $40 per month.

Opting for liability-only car insurance is the best way to ensure that your monthly coverage payment is less than $100 a month. However, it is essential to know that this type of policy only pays for damages to other vehicles if you cause a car accident. You will be responsible for all damages to your car. 

It’s also important to know that liability coverage is usually not an option unless your vehicle is paid off. If your car is worth less than $8,000 and you drive less than 1,000 miles per month, it might be wise to get liability car insurance under 100 a month. 

The big drawback to a liability-only policy is you are limited in the protection offered. If you cause extensive injuries in an accident you cause, you could be held liable for the damages that exceed your policy limits. 

Most accidents today exceed the limits of a “bare bones” liability policy. If you opt for a liability policy, get higher limits to give yourself greater financial protection. You can still get car insurance under 100 a month with higher limits on a liability policy by shopping around and comparing multiple quotes.

What is Minimum Liability Coverage?

Just like it sounds, minimum liability coverage provides minimal coverage. If you are determined to be at fault for a serious accident, you could be sued and made to pay for any costs above what your insurance coverage will payout. Here’s an example.

If you hit a $50,000 vehicle, and it is deemed "totaled" (or non-repairable), and your minimum coverage is $25,000, you could be held responsible for the remaining $25,000.

If you don’t have the funds to pay what you owe after an at-fault accident, you could be ordered by a judge to make monthly installment payments, which could affect your lifestyle. In a worst-case scenario, you could also be held responsible for any injured passengers’ medical costs, which could exceed six figures and, in some cases, over $1 million. This is why getting the most auto insurance coverage you can afford is smart.   

It’s imperative to consider your financial protection when deciding on car insurance. If you are in a temporary cash crunch and need cheap liability car insurance under $100 a month, you can upgrade your coverage when you can afford to. If your assets exceed $100,000, choosing liability-only car insurance is probably not an intelligent choice.

Is Liability Coverage Right for You?

Liability coverage might be a good option if your vehicle’s overall value is less than $8,000. By eliminating collision and comprehensive coverage, you should see a significant reduction in your monthly payment amount, which could go well below $100. 

Your rate will be even lower if you opt for a higher deductible, such as $1,000. If you have a good driving record and a credit score above 700, you can get liability coverage for less than $50 a month. If you opt for every discount you qualify for, your coverage could be as cheap as $37 per month, which is a little over $1 a day.

The best way to ensure that you get the lowest rates is by comparing multiple quotes.

Check rates from both national insurers like Progressive and also regional brokers like Auto-Owners. Quotes are free, and you are under no obligation to purchase a policy. Take a few minutes to compare at least ten quotes. Get started by entering your zip code. 

Exceeding the State Minimum Liability Coverage

Although choosing the minimum amount of liability coverage will ensure the lowest monthly payment, it’s not always a good option, as we outlined earlier. In fact, if you are in a severe accident, opting for the minimum amount of coverage may not pay for all the damages. So, you’ll likely end up in court, where you will be ordered to pay the uncovered amount.

Typically, you're encouraged to choose limits based on your assets. For example, if you have $200,000 worth of assets, you'll want to get protection of $200,000 or more.

Suppose you are a high-net-worth individual with assets exceeding $1 Million or more. In that case, you need full coverage auto insurance with very high limits and never opt for liability coverage. High net-worth individuals may consider an umbrella policy that provides extensive coverage, even beyond their home and automobile. Securing high-limit coverage makes the policy more expensive, but it also adds valuable protection in a severe or fatal accident.

What Is the “100/300” Rule?

In the insurance world, professionals often refer to the “100/300” rule. Endorsed by the Insurance Information Institute, or III, this is the recommended amount of driver coverage. It provides $100,000 for each person’s bodily injuries, with a maximum of $300,000 per incident.

A Note About Comprehensive Coverage

If your car is leased or financed, you will almost certainly have to get a car insurance policy that includes comprehensive coverage. This is because comprehensive coverage provides more protection in the event of an accident and is typically required by lenders. 

Unfortunately, comprehensive coverage is more expensive than a minimum liability policy, and it’s more difficult to find under $100 a month.

To get an insurance rate lower than $100 a month for comprehensive coverage, you will need to have a stellar driving record, as well as a fantastic credit score. If offered, you will also need to opt for a deductible of $1,000 or more. 

Also, when shopping for a new or used vehicle, get an insurance quote before you make a buying decision. The cost of coverage will vary a lot between vehicles, which will help you find cars that can be covered with car insurance under 100 a month.

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What Insurance Companies Have The Cheapest Rates Under $100 a Month? 

• USAA – $32 (must be in the military, a veteran, or a military family member)  
• Auto-Owners – $33
• Erie Insurance – $35
• Farm Bureau – $38
• State Farm – $39
• American Family – $44
• Geico – $48
• Progressive – $51
• Nationwide – $58
• Travelers – $62
• Allstate – $65

* These rates are based on a liability-only policy for a 2013 Toyota Camry with a 43-year-old married driver.

Tips for Getting Car Insurance for Less than $100 a Month

As mentioned above, insurance companies do consider numerous factors when determining how much your premiums will be. Based on factors you can control, below are several tips you can follow that will result in a lower monthly payment:

• Get an older vehicle: The older a car is, the fewer insurers will charge to cover it. Three of the most significant factors considered are a car’s year, make, and model. If your vehicle is more than five years old, you are more likely to get car insurance for less than $100 a month.
• Choose a vehicle that is cheap to insure: High-performance or exotic cars are seen as a significant risk for insurance companies. Obviously, this means they will charge more to insure them. In some cases, these types of vehicles will raise your insurance premiums by 30% or more. For the lowest monthly payment, you’ll want to choose a family sedan, such as a Chevrolet Cruze or Toyota Camry, and stay away from high-performance automobiles.
• Bundle Auto and Home Insurance: One of the best ways to get car insurance under 100 a month is by bundling your home and auto insurance together with one company. This can save you around 10%.
• Improve your credit score: Besides being married and owning a home, having a good credit score is the best way to get a cheaper monthly insurance rate below $100. Drivers with a credit score of 700 or higher generally get a reduction in their monthly rate because they are deemed less risky by most companies.
• Make sure you get the discounts you qualify for: Many drivers don’t realize that there are numerous discounts they may be eligible for. Taking advantage of these discounts could help you get your monthly payment to $100 month or less. Possible discounts include:
  • Low monthly mileage
  • Garaged vehicle
  • Safe driver
  • Automatic deduction payment plan
  • Current members of the military and veterans
  • Good student discount
  • Senior citizen 

Senior Citizen Car Insurance for Less than $100 a Month

Older drivers spend a lot less time on the road when compared to their younger counterparts. This makes them safer drivers and is part of the reason they often have cheap insurance rates. 

Seniors can get monthly coverage, usually under $100 a month, if they drive a used vehicle, have a clean driving record, drive less than 800 miles per month, and maintain a credit score over 700. Many top insurance companies, including Progressive, State Farm, and Travelers Insurance,  offer excellent coverage and low insurance rates for seniors. To compare senior citizen auto insurance, enter your zip code and fill out a quote application in about four minutes.

Teen Auto Insurance Under $100 a Month

Teenagers pay the highest premiums because they are the riskiest drivers who don’t have much experience behind the wheel. The average U.S. teenager pays about $270 per month for coverage. Getting rates for drivers under 20 close to $100 a month is very difficult, but there are steps you can take to get the cheapest teenage auto insurance. This includes:

• Add the teen to their parent’s policy.
• Have the teenager take a certified defensive driving class
• Drive an older vehicle, preferably a four-door sedan with a four-cylinder engine
• Take advantage of discounts like “good student.”
• Drive less than 800 miles per month
• Install a telematics device

These tips will reduce the cost of insuring your teen, but it probably won’t get rates down to $100 a month. Check rates online for the lowest teen car insurance rates.

Is $100 a Month for Car Insurance Good?

A car insurance premium of $100 per month can be considered a relatively good rate, depending on various factors. Car insurance rates are influenced by factors such as your age, driving history, the type of coverage you’re getting, the make and model of your car, your location, and more.

In general, lower rates are better, but it’s important to ensure that the coverage you’re receiving meets your needs. Cheaper policies might offer less coverage or have higher deductibles, which means you’d pay more out of pocket in case of an accident. It’s essential to review the policy details and compare them to your requirements before making a decision.

Additionally, it’s a good idea to shop around and get direct auto insurance quotes from multiple insurance companies to see if you’re getting a competitive rate. Keep in mind that insurance rates can change over time, and what might be a good rate now could change in the future based on changes in your circumstances, the insurance market, or other factors.

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Compare Multiple Quotes From National and Regional Carriers

Without a doubt, there is one thing you absolutely must do when searching for car insurance that is less than $100 a month.

You need to take the time to get multiple quotes from various companies. It would be best if you compared quotes from national carriers like Progressive Insurance and also regional insurers.

Sometimes the smaller, less known providers have rates lower than the national, more well-known companies. Direct auto insurance carriers often have the cheapest premiums, with monthly plans under $100 and low deposits from $20 down. Direct insurers like GoodtoGoInsurance and Progressive often have rates under $100 for many drivers and low down payment options. Other insurers like 21st Century and Esurance also have low direct rates, usually under $100 monthly. 

When comparing rates, look at your deductible amount and the amount of coverage to be sure they are similar. Now, it’s time to select the best company that has the lowest rates. Enter your zip code now and compare free quotes in around four minutes. Save more money today on the coverage you need.