Car Insurance Under $100 a Month

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Car Insurance Under $100 a Month

If you need car insurance under $100 a month, then the type of policy and coverage limits need to be carefully chosen. While it’s easier to find a liability-only policy under $100 a month, it’s possible to get full coverage auto insurance for less than $100 per month. To find insurers that offer the best rates for the coverage you need, compare rates from both regional and national providers.   

The cost you pay for coverage varies based on many factors. This includes the type of coverage you choose and the limit amounts. Your risk profile as a driver will play a large role in determining if you can get auto insurance for less than $100 a month. The main factors that go into the premiums charged are: 

  • A Drivers Age
  • Driving Record (number of tickets and accidents) 
  • The Vehicle Driven
  • Address where the Car is Parked
  • Driving Experience
  • Number of Miles Driven Monthly
  • Credit Rating
  • Homeowner or Renter
  • Marital Status  

To get the cheapest car insurance rates below $100 a month, you should focus on reducing your risk profile on the things you can control. Raise your credit score above 700, drive a vehicle that is cheap to insure, and drive less than 800 miles per month.

car insurance under $100 a month

Full Coverage Car Insurance Under $100 a Month

The coverage and limits you decide on plays a significant role in the overall cost of your policy. There are three main types of coverage. These are:  

  • Liability
  • Collision
  • Comprehensive  

Collision and comprehensive insurance will cost more, but it’s still possible to get this type of coverage under $100 monthly if you raise your deductible and lower your limits.  

Most full coverage policies cost about $2,350 per year. This averages to a cost of $196 per month. A comprehensive policy often costs double what a state-minimum-auto insurance policy costs. To get full coverage car insurance under $100 a month, do this: 

  • Raise your deductible to $1,000 or more
  • Insure a vehicle that’s cheap to cover. For example, an older model Toyota Camry and most Subaru 
  • Set lower limits
  • Remove unneeded or overlapping coverage
  • Get all the discounts you can
  • Compare quotes from both national and regional providers to get the best rate   

What Companies have the Cheapest Full Coverage Auto Insurance Under $100 a Month? 

Several providers have full coverage policies near or under $100 a month. This includes: 

  • State Farm
  • Progressive
  • Esurance
  • 21st Century 
  • Farmers

State Farm has some of the best rates on average for comprehensive coverage. Their average rate is about $147 per month or $1,764 annually. Keep in mind this is an average. You might pay more or less. If you are a safe, low-risk driver with no accidents, there is a chance you can get full coverage with State Farm (our favorite choice) for less than $100 monthly. To compare the best rates online for the coverage you need, start by entering your zip code.

Liability Car Insurance Under $100 a Month 

In all but one state in the U.S., liability insurance is mandatory for all motorists. Each state sets its own insurance laws, including the minimum legal amount of liability protection you need to purchase. Many people on a tight budget with little money for expensive auto insurance often buy state minimum liability coverage. This includes students and also retired persons who don’t drive as much as they once did.

These “bare bones” policies can often be purchased for less than $100 per month and usually below $50 monthly for safe drivers. It really depends on the driver’s record, the vehicle driven, the coverage limits, and the insured car. 

The Issue with Buying a Minimum Liability Auto Insurance Policy

The problem with a minimum liability auto insurance policy is that it will often not be enough coverage in the event you get into a severe accident. This could result in you getting sued and held responsible for the costs above and beyond your insurance coverage.

For example, if you hit a luxury vehicle worth $60,000 and total it, but you only have $40,000 in protection, you could be sued for the remaining balance of $20,000. Even worse, if there are passengers who were injured due to an accident you caused, you could be looking at medical costs well into the six-figures.

Buy Liability Only Auto Insurance with High Limits

This is why it’s so important to carefully consider protecting yourself financially when you buy auto insurance coverage. Insurance coverage should fully protect you from a financial disaster. It’s not smart to buy liability only auto insurance if you have assets worth over $100,000 you need to protect. 

Coverage Limits Above the State Mandated Minimums

Even if you are just starting out and low on funds, you should get car insurance limits that are well above the state-mandated minimums. In general, the limits you buy should correlate with the assets you have. 

If you have $200,000 in assets, you need insurance protection of $200,000 or more. The last thing you want is to be dragged into court and be held liable for $200,000 or more in an accident judgment and only have $50,000 limits on your policy.

What are 100/300 Rules?

Insurance professionals often refer to the “100 / 300 rule.” This is a recommended coverage amount endorsed by IIS or the Insurance Information Institute. This will cover you for $100,000 in bodily injuries for each injured person and up to $300,000 per incident. The IIS advises motorists to use this amount as a benchmark and avoid buying insurance with lower limits.

However, the state minimum insurance laws are much lower. Drivers looking for car insurance under $100 a month can often get insured with the 100/300 coverage and even pay a lot less if they have a clean driving history. You can search for the policy limits you need at sites like good to go auto insurance online.

Can Teenagers Get Auto Insurance Under $100 a Month?

Teens are the riskiest and accident-prone drivers of any age group. Drivers under 20 take more risks behind the wheel than older motorists and thus get charged higher premiums. 

Young motorists engage in dangerous behaviors like texting and talking on their cellphones while driving, leading to severe accidents. They are also inexperienced drivers that think they are seasoned experts, which is a bad combination.

Teenagers are charged more for auto insurance coverage because they get into many more accidents than drivers over 25. So, is teen auto insurance under $100 a month even possible? The obvious answer here is probably not, but it might be possible under certain conditions. Here is a strategy for getting teenage auto insurance coverage close to $100 a month.

Auto insurance for teenagers under $100 a month

A. Stay on Your Parents Car Insurance Policy

This is important if you want to get the lowest monthly rate. Adding a driver, even those under 20, onto an existing policy can save you hundreds per year. 

Many teenagers can’t afford the high cost of buying a separate policy and need their parents’ help. However, adding a risky inexperienced driver can cause the policy to go up over $100 per month. Rates can go up even more, depending on several factors, like if the teenager has any tickets or accidents. 

Another benefit is there’s no age limit to staying on a parent’s policy. A young driver can be on their parent’s policy if they are 26 or even 30, as long as the parent and child agree to the arrangement. However, it’s important to note other criteria from the insurer that always needs to be met, such as having a valid driver’s license.

B. Teenagers Should Drive a Vehicle that is More Than 10 Years Old

Automobiles that are older and not driven as much cost less to insure. Also, older cars that have depreciated a great deal are cheaper to insure. This is because their replacement and repair costs are much less. Young drivers should insure a vehicle worth less than $5,000. This will help them increase the odds of getting car insurance under $100 a month. 

C. Buy Liability Only Coverage

Although it’s risky to get liability only coverage for a teen, if you need to lowest rates, this could be an option to consider. It’s smart to get greater protection, like collision and comprehensive insurance with higher limits in the long run. In the event a young driver gets into a severe accident, it can provide substantial financial protection.  

D. Get a Good Student Discount

A good GPA above 3.0 can lower a young driver’s auto insurance rates by 10% or more.

E. Get a Higher Deductible

A higher deductible of $1,000 or even $2,000 (if offered) can lower rates considerably, even for drivers under 20 years of age.

F. Take a Certified Defensive Driving Class

Every teenager should take a driver’s education class because they will become better drivers and safer. They’ll also save about 10% on their car insurance if they complete a certified course.

G. Stay Accident and Ticket Free

Just one ticket can cause rates to spike for young drivers. Drive safe and obey all traffic laws, and keep your auto insurance rates as low as possible.

H.Drive Less Than 800 Miles Per Month

Low mileage discounts can save hundreds per year, even for teens.

I. Get Insured with a Company That Offers Telematic Discounts

Safe teenagers, responsible drivers can save up to 20% by installing a Telematic device that tracks their good driving.

By taking advantage of these tips, it might be possible to get teen auto insurance coverage for less than $100 a month.

Senior Citizens Auto Insurance Under $100 a Month

Seniors are some of the safest drivers around. They also don’t drive nearly as much as younger motorists. These are a few reasons why they pay the cheapest rates of any group of drivers. Seniors with a good driving record, a credit score above 700, and who drive a used vehicle can often get rates under $100 a month.

If you are a senior and your vehicle is worth less than $6,000, consider eliminating collision and comprehensive coverage. This will lower your premiums a lot.   

Another way for seniors to get their rates below $100 per month is to raise the deductible amount to $1,000. Several companies cater to senior drivers and offer excellent coverage and low monthly rates. These include State Farm, Progressive, Nationwide, Farmers, and Travelers Insurance. Enter your zip code and compare senior auto insurance quotes online in about five minutes. 

A Good Driving Record Can Help Drivers get Car Insurance Under $100 a Month

If a driver has a good DMV record with no tickets and no at-fault accidents, he or she can often get liability car insurance for $50 a month or even less. If you have an outstanding ticket, go to traffic school, so it doesn’t go on your record. The better your driving record, the cheaper your auto insurance coverage will be. 

One of the most critical steps to take when searching for a plan is to compare multiple rates. At sites like Goodtogoinsurance, you can review up to 10 quotes in under 5 minutes. There is no obligation to buy a policy, and most people can save 20% or more. Enter your zip code to get started.  

Older Used Vehicles Are Much Cheaper to Insure

If you have a five-year or older car, you have a greater chance of getting auto insurance for less than $100 a month. The year, make, and model of your automobile is one of the three most significant factors determining rates. The more expensive and newer it is, the higher your rates will be. 

Also, stay away from exotic, luxury, and sports vehicles if you want auto insurance coverage under $100 a month. As a rule of thumb, the more boring your car is, the less it will cost to insure.     

This is why if you really need to get your monthly insurance cost under $100 a month, you should drive a second-hand vehicle that is at least 6 years old. Insurers give discounts to boring family sedans like the Subaru Legacy or Toyota Camry. 

The last thing you want to do if you need the cheapest auto insurance under $100 a month is to get a new sports car. Insurance companies often charge 30% higher rates, or even more, to cover high-performance vehicles like a Corvette or Porsche. Stick to a basic car, preferably with four doors and four cylinders, and you will reduce your insurance premiums by hundreds per year. 

Maintain a Credit Score of 700 or Higher

Good credit is not only necessary when you buy a vehicle, but it will also help you get lower auto insurance rates as well. Insurers use a person’s credit rating as a key metric in determining their risk profile. 

Drivers with a higher credit score, in general, get into fewer accidents and file fewer bogus claims. A good credit score above 700 can help you get auto insurance for less than $100 a month. Having great credit can also help you get lower down payments, like $20 down payment car insurance

Discounts can help you get Car Insurance Under $100 a Month 

A smart way to lower your car insurance costs is to take advantage of all the discounts you can. Most people will qualify for one or more discounts. This can mean the difference between getting car insurance under $100 a month or not. Here are some of the most common discounts:

  • Safe Driver
  • Senior Citizen
  • Garaged Vehicle
  • Low Monthly Mileage 
  • Automatic Deduction Payment Plan
  • Teacher
  • Military and Veteran
  • Good Student Discount 
  • Telematic Device  

Comprehensive Car Insurance Under $100 a Month

If you have a leased or financed vehicle, you will often be required to get comprehensive coverage. This presents a challenge because the car will usually be less than five years old. Comprehensive insurance is the gold standard of protection and thus costs more. It can often cost twice as much as minimal liability coverage.  

To get comprehensive auto insurance for less than $100 a month, you are going to not only need to have an excellent driving record but a vehicle that’s cheap to insure. Also, you’ll need excellent credit and choose a higher deductible. Then, comparison shop multiple rates to increase your chance of finding auto insurance coverage for less than $100 per month.  

Finding Auto Insurance for Less than $100 a Month Online

Not only is shopping for car insurance online so much faster than going through an agency, but it can also save you a ton of money. 

Most consumers can save hundreds off their premiums by buying a policy direct. There are cost advantages to selling online, and these are passed onto the consumer by way of cheaper rates. To get car insurance under $100 a month, focus on direct insurers like Progressive and Esurance. Direct providers often have rates that most insurers just can’t match. 

Conclusion

To get car insurance under $100 a month, you’re going to need to have a low-risk driving profile. Safe drivers that have good credit and drive an older vehicle, often get rewarded with the cheapest rates. Besides, shopping for the best rates online can help you save hundreds. If you need car insurance under $100 a month, start comparing rates and plans online. To get going, just enter your zip code and fill out an application. Save more on the coverage you need today.