Definition: Low cost car insurance, also called basic car insurance or a basic policy, provides coverage for your vehicle at a reduced rate compared to more comprehensive policies. Definition of low cost car insurance: Low-cost car insurance refers to an insurance plan that offers a lower premium rate than a comprehensive policy. This means you pay less for the same level of protection as a comprehensive policy, often in the range of $50-$100 per year. Some low-cost plans include coverage like collision coverage, theft protection, and liability coverage at a fraction of the cost of more comprehensive policies. Low-cost car insurance is important because it helps lower your monthly payments on your vehicle, allowing you to invest in other expenses or to take advantage of discounts such as cash back rewards programs or frequent flyer miles. However, it's also important to consider what kind of driving behavior you have and whether it may increase the cost of your premium. The low-cost car insurance plan may not cover all of the same coverage options that a comprehensive policy does, but it can still be an excellent choice for many drivers who want lower costs without sacrificing much in terms of protection.