Car Insurance Under $100 a Month

Are you looking for car insurance under $100 a month? You can get insured for under $100 a month, but it will require a little effort. 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.

To help you find auto insurance coverage under $100, here are a few things you need to know. Use these helpful tips to get cheaper auto insurance while maintaining quality coverage.  

Get Cheaper Liability Car Insurance

Except for Virginia, all states require that drivers 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 the state where you reside.  

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

Opting only to have liability 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 is that 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. If you opt for a liability policy, get higher limits to protect yourself further financially.

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 end up 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.

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.  

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?

If your vehicle’s overall value is less than $8,000, liability coverage might be a good option. By eliminating collision and comprehensive coverage, you should see a significant reduction in your monthly payment amount, and it 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, you may be able to 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.

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

Quotes are free, and you are under no obligation to purchase a policy. Take a few minutes to compare at least five quotes. Get started by entering your zip code. 

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

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 the 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. 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?

Professionals often refer to the “100/300” rule in the insurance world. 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.

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

As mentioned above, insurance companies consider numerous factors when determining how much to charge you. Below are several factors that you can control that will result in a lower monthly payment:

Age of your 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 insurance for less than $100 a month.

Type of vehicle: High-performance cars are seen as a significant risk for insurance companies. Obviously, this means they will charge more to insure them. You’ll want to choose a family sedan for the lowest monthly payment, such as a Chevrolet Cruze or Toyota Camry. These types of vehicles will raise your insurance premiums by 30% or more in some cases.

Credit score: One of the best ways to get a cheaper monthly insurance rate under $100 is to have a good credit score. Most companies consider drivers with a credit score of 700 or higher to be less risky. This is why insurers generally offer reduced monthly rates for these drivers.

Discounts: 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 a 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 often have cheap insurance rates. Seniors can generally get monthly coverage for less than $100 a month if they meet certain criteria. A clean driving record, maintaining a credit score above 700, driving a used vehicle, traveling less than 800 miles per month are factors that will positively influence obtaining cheap auto insurance for seniors. Many top insurance companies, including Progressive, State Farm, and Travelers Insurance,  offer excellent coverage and low insurance rates for seniors.

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 teenager auto insurance. This includes:

• Add the teen onto 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.

Compare Multiple Quotes From National and Regional Carriers

You absolutely must do one thing when searching for car insurance for less than $100 a month.

You have 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 you compare rates, make sure to 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 with the lowest rates. Enter your zip code now and compare free quotes in less than five minutes. Save more money on the coverage you need.