Imagine how great it would be to spend $50/month or less on car insurance. Although this may sound like a bad commercial, it is possible to buy coverage at such a low rate.

Before we go any further, it is important to note that some people just aren’t cut out to buy cheap car insurance. Do you have a DUI on your record? How about multiple accidents? People who find themselves in these situations are not going to receive the lowest rate, no matter how hard they try.

However, if you have a relatively clean driving record (and a few other things going in your favor) you may be able to buy a policy at this price. Here are five tips for making this happen.

1. Opt For Minimum Liability Coverage

This may not be ideal in terms of the amount of coverage you receive, but in the long run you are making a decision that will help you save a lot of money.

Note: you may have to skip over comprehensive and collision coverage to receive a “bottom of the barrel” rate.

2. Increase Your Deductible

Not only should you increase your deductible, but if you want to save as much as possible you should also take this number as high as you can (ask your agent about this).

Typically, your deductible (comprehensive and collision) will range from $250 to $1,000. In short, the higher your deductible the lower your premium.

3. Search For As Many Discounts As Possible

Even though you may have several discounts applied to your policy right now, there is a good chance that there are others that you qualify for. How are you going to know if this is the case until you ask? Don’t be shy about contacting your agent and discussing available discounts. Try to also compare quotes from as many companies as possible.  Try to get at least 3 offers to see where your current provider stacks up (if you have one).

4. Keep Your Credit Score as High as Possible

Many people are unaware that their credit score can have an effect on their car insurance premium. In most states, auto insurance companies are allowed to use your credit history and score in setting a premium. If you keep your score at 650 or above, you have a much better chance of a low rate.

5. A Clean Record is Essential

Any accident or moving violation could kill your chance of buying car insurance for $50/month or less. If you have some red marks on your record, continue to stay clean into the future. These will eventually be wiped out. On the other hand, if your driving record is perfect right now you should never do anything to jeopardize this.

Final Tip

Although you may be able to purchase car insurance for $50/month, it does not necessarily mean that you should do so. To make this happen, you are probably giving up a lot in terms of coverage while also increasing your deductible. This is fine for the time being, but if you are involved in an accident it may come back to haunt you.

In the end it is all about numbers for the insurance companies.  How much value are they insuring and how risky are you as a driver.  You can see an analysis of your risk profile against other drivers and see current rates in your area by taking our auto quiz.