If you don't have a lot of money to spare, one way to make your budget work is to reduce your car insurance costs. There are many ways you can reduce your car insurance costs so you can enjoy cheap car insurance.

Step #1: Go for the Minimum Coverage

If you don't have that much money to spend on car insurance, you should consider dropping your coverage for the time being down to the minimum required insurance for your state. With the state minimum insurance, you will carry liability insurance. If you get into an accident and it is deemed your fault, your insurance will cover the other driver's costs and medical bills.

You should also ensure that you are carrying personal injury protection, which will pay for your medical bills if you get injured in an accident. Keep in mind that this type of insurance isn't going to take care of your car if you get into an accident, but it will lower your insurance costs.

Step #2: Add Roadside Assistance

When it comes to saving costs, it may seem counterintuitive to add roadside assistance. However, roadside assistance generally only adds a few dollars to your policy each month and will save you a lot of money if you need roadside assistance.

If your vehicle gets into an accident or experiences a mechanical failure, paying out of your pocket for a tow truck can be expensive. You don't have to worry about paying for a jump or a tow truck out of your pocket with roadside assistance. It is a small expense that can save you serious money should you need to use it.

Step #3: Go for a Higher Deductible

Finally, you can always try the classic method of raising your deductible up. Each increment that you raise your deductible should allow you to enjoy a decrease in your premium.

Be careful with raising your deductible. Remember, if you get into an accident, you will be expected to pay that amount in a short amount of time to your insurance company, so you want to make sure it is a rate you could afford to pay in an emergency.

Step #4: Shop Around

Finally, the best thing you can do to secure an affordable rate is to shop around and get quotes from multiple insurance companies.

Get quotes from both regional and national insurance providers. Each insurance company has a slightly different formula for calculating your risk and, thus, your premium, so shopping around each year is generally the best way to make sure you are enjoying the lowest possible premium.

If you need cheap car insurance, drop down to the minimum required coverage for your state. Add on roadside assistance, so you don't have to pay out in the case of an emergency. Go for a higher deductible while keeping it affordable. Finally, always shop around and get quotes from large and small insurance companies to find the best personal rate for you.

For more information, contact a company like Illinois Insurance Center Inc.