Everyone wants to get the cheapest rate they can for auto insurance, but there is more to it than just going with the company that advertises the lowest rates on TV or the Internet. You have to know what you need, what you want, what you are getting in your policy, and why you are getting it, to make sure you get the lowest priced options available.
Type of Car
Did you know that what kind of car you drive impacts your insurance rate? Sports cars and some SUVs and trucks will cost more than sedans or wagons. The age of the vehicle can also play a part in the amount you’ll pay to insure it. While some insurance companies will explain all of this to you when you go to buy a policy, many won’t tell you up front that one car will cost more to insure than another. If you don’t want to pay more than you have to, make sure and ask before signing up for a policy so you can compare rates with other companies first.
Where You Live
The area you live in can also have a major effect on how much you pay for auto insurance. In some counties where there is a higher population density you will find higher insurance rates as well. While moving to a new area just to cut down on your insurance rates is ridiculous, you can always at least discuss the options with our agent. If you are looking into moving to a new area soon, you should at least check out what insurance will cost there before you go.
Your Driving Record
Every few years you should be eligible for a review of your driving record to determine what insurance rates you are qualified to get. If you have a lot of speeding tickets, parking violations, or even accidents on your record, they will most likely raise your rates. But after five years or so your agent should re-evaluate your record and give you a lower rate if you have no new tickets or violations. Some insurance companies will do this automatically but others won’t say anything unless you point it out.
Type of Insurance Company
Sometimes the difference in how much you pay for auto insurance falls to whether or not you are working with a local or national company. Some small insurance offices will give you a lot of different features to your policy in order to make you choose them, but they will charge more for that policy because they have to. Large insurance companies with millions of customers can offer lower rates for similar policies, though they might not have all of the perks or personal attention that a small company provides.
Do Your Research
The number one way you may find yourself paying more for auto insurance is to not do your homework before you commit to a policy. Comparison shopping will show you not only who charges the most for their insurance but who offers the best features in their policies. If you want to pay the most possible for your policy, go ahead and skip doing research or comparison-shopping.