Car Insurance For Less Than $100 a Month

Are you looking for car insurance under $100 a month? It is possible to find, but it is going to require a little effort on your part. There’s a reason for this. Multiple factors are used to calculate your car insurance rate. Some of these things you have control over, such as what kind of car you drive and what kind of coverage you select. Other things you don’t, such as 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.

Get Cheaper Liability Car Insurance

With the exception of Virginia, all states require that drivers have liability coverage on their vehicles. The minimum amount of liability protection required differs from state to 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.

Opting to only have liability car insurance is the best way to ensure that your monthly coverage payment is less than $100 a month. However, it is important 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 vehicle. It’s also important to know that liability coverage is not an option unless your vehicle is paid off.

What is Minimum Liability Coverage?

Just like it sounds, minimum liability coverage provides minimal coverage. In the event you are determined to be at fault for a serious accident, you could end up being 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 the medical costs of any injured passengers, which could exceed 6 figures.

It’s very important to consider your financial protection when deciding on car insurance. If your assets exceed $100,000, choosing liability only car insurance is probably not a smart choice.

Is Liability Coverage Right for You?

If your vehicle’s overall value is less than $5,000, liability coverage is probably 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. 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.

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. In fact, if you are in a serious accident, opting for the minimum amount of coverage may not pay for all the damages. This means that 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 the assets you have. For example, if you have $200,000 worth of assets, you’ll want to get protection of $200,000 or more.

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 coverage for drivers. It provides $100,000 for bodily injuries for each person, with a maximum of $300,000 per incident.

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

As mentioned above, insurance companies do 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 less insurers will charge to cover it. In fact, three of the biggest factors considered are a car’s year, make, and model. If your vehicle is more than 5 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 big 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.

Credit score: In addition to being married and owning a home, having a good credit score is the best way to get a cheaper monthly insurance rate below $100. Most companies get drivers with a credit score of 700 or higher a reduction on their monthly rate because they are deemed less risky.

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 is part of the reason they often have cheap insurance rates. Seniors can get monthly coverage, often 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 of the 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 just 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 telematic 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.

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, as well as a fantastic credit score.

Compare Multiple Quotes From National and Regional Carriers

Without a doubt, there is one thing you absolutely must do when searching for car insurance less than $100 a month. You have to take the time to get multiple quotes from various companies. You should compare 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.

When you compare rates, make sure to look at the amount of your deductible 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 less than five minutes.