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We’ve all seen the online ads that claim monthly car insurance as low as $29 a month. For most people, that just doesn’t pass the “smell test.” The truth is it’s almost impossible to get auto insurance coverage for about $1dollar a day. However, you might ask, can I qualify for $50 a month auto insurance, or is there even such a thing?
Let’s dive into this topic with some basic data and helpful tips that will give you the chance to get covered for around $50 per month.
There are numerous reasons why someone wants to get auto insurance under $50 a month. Here are just a few.
- They need $50 car insurance to make their budget work
- Other Fixed Monthly Bills went up, and they need Cheaper Car Insurance
- They lost their job and still need minimum coverage at the lowest rate possible
- Someone retired and doesn’t drive much and is on a fixed income
Is $50 Monthly Auto Insurance Even Possible?
This is a good question that needs further exploration. Many people are doubtful that $1dollar a day automobile insurance is realistic, but hold out some hope that $50 a month insurance might be attainable. Although the truth is it’s hard to get insurance coverage that cheap, the good news is it’s realistic if the driver meets certain criteria. Getting affordable coverage depends on lowering your risk profile a lot. It also depends a lot on where you live. Here are some factors that will help you get $50 a month auto insurance.
- Live in a State that has lower rates
The average state by state auto insurance premiums varies a lot. Michigan might average over $2,800 for an annual, basic collision policy. That same coverage in South Dakota might cost less than half of that. Here are the cheapest states to insure your vehicle. If you live in one of these or are moving to one soon, you are in luck.
- Maine – Annual Rates Average Less than $925
- New Hampshire – Most Annual Plans are Under $975
- Ohio – Yearly Coverage Averages about $1,000
- Wisconsin – Most Yearly Policies are less than $1,025
- Iowa – Annual Coverage Averages about $1,100
If you don’t live in one of the cheapest states for auto insurance, don’t worry. There are other things you can control to lower your rates.
- Drive a Car That’s Cheap to Insure
This seems like common sense. However, many people don’t check insurance rates before falling in love with a vehicle that might be too expensive to insure. Always check the average rates on any automobile you are seriously interested in buying. Doing so will help your chances of getting car insurance under $50 a month. Here are a few of the cheapest cars to insure in 2020, according to comparison site The Zebra.
- Subaru Outback – $644
- GMC Canyon – $651
- Nissan Frontier – $694
- Fiat 500X – $719
- Jeep Compass – $729
- GMC Sierra – $732
- Ford Escape – $735
- Ford Transit Connect – $735
- Chevrolet Traverse – $735
- Kia Sportage – $737
Notice that none of the vehicles on this list are expensive exotic vehicles like a Jaguar, nor sporty cars like a Corvette. Insurers have noticed, based on data, that SUVs are driven more carefully because they often carry children and family members around. They also have fewer fatalities than other vehicle types due to their large size. For these and several other reasons, they are cheap to insure. Notice that both the Subaru Outback and GMC Canyon have rates that average near $50 per month. This includes all drivers, even those with high-risk profiles.
- Raise Your Credit Score Above 700
Insurers are placing more weight than ever on a person’s credit when determining premiums. While some think this is discriminatory, the stats show that those with higher credit scores are safer drivers, file fewer claims and commit far less insurance fraud. The higher your credit rating is, the lower your premiums will go. If you have a score in the 500s or 600s, get it above 700 as soon as you can. Doing so will save you 10% or more of your premiums, and help you get car insurance for less than $50 per month.
- Reduce Your Coverage
Do you drive a vehicle that has depreciated 50% or more and is worth less than $8,000? Is it more than 10 years old? If so, you might want to reduce the coverage on it. This means dropping expensive coverage like collision and comprehensive coverage and getting basic liability insurance. This can help you drop your rates by 30% or more. Remember, if you finance or lease your car, you will be required in most cases to carry comprehensive coverage.
- Raise Your Deductible to $1,000 or More
This is a tip many people don’t think of. The higher you set your deductible, the lower your premiums will be. If you have the discipline to save the deductible amount, in the event you get into an accident and need to file a claim, go as high as you can. If you don’t want to go that high, you can still get a reasonable rate with a $500 deductible.
- Stay Accident and Ticket Free
One of the best ways to get cheap insurance is to be a safe driver. This means having a clean driving record and not having any at-fault accidents on your record. If you do get a ticket, go to driving school, so it stays off your record. If that’s not a possibility, then make sure you pay your ticket right away and don’t get another one.
- Keep your Teenager and any Driver Under 25 off your Policy
Teen drivers can cause their parents auto insurance premiums to skyrocket. Young drivers under 20 are the most dangerous drivers on the road. These motorists take extreme risks like reckless driving while sending text messages. If you have a teenager who needs coverage and can’t afford it, it shows some tough love. They can either get their policy or hop in an Uber to get around.
- Get Every Discount You Possibly Can
Qualifying for several discounts can help you get auto insurance coverage for $50 a month. These are a few that can save you the most.
- Safe Driver Discount
- Low Mileage Discounts
- Bundling Auto and Home Insurance
- Multi-Vehicle Discount
- Defensive Driver Discount
- Military Discount
- Senior Citizen Discounts
- Loyalty Discount – for those customers that renew their policy
- Good Student Discount (GPA of 3.0 or higher)
- Safety Features Discounts. This includes airbags, anti-lock brakes and GPS Based Security Systems
- Paying the Full Premium in Advance
- Garage Parking Discount
- Maintain Continuous Coverage
Did you know if you cancel your auto insurance and don’t get a new policy for an extended period of time, it can cause your rates to go up when you do get new insurance? This is why maintaining continuous coverage can help you get the cheapest auto insurance possible.
- Shop Around for the Best Rates and Plans
If you need $50 a month car insurance, you need to invest some time comparing quotes—review 10 or more quotes from local, regional, and national insurers. Get online quotes from direct providers as well as quotes from agents and brokers. The more quotes you review will help increase your chances of getting auto insurance under $50 a month.
Now that you’ve learned some valuable tips on how to get $50 monthly car insurance, it’s time to start comparing online rates. It only takes about 5 minutes to apply, and you can even use your smartphone. Get started now by entering your zip code and filling out a quick application. Get the coverage you need at the best rates right away.