Everyone needs car insurance, but beyond the basics of what the law requires, it can seem overwhelming to discern everything you are going to need, and how to get what you need without paying through the roof. The good news is there are some concrete things you can do to save on your car insurance policy and make sure you have the coverage you need. Most experts will tell you that only buying liability coverage is not a wise decision. The requirements set down by each state are not keeping up with cost of living, and the rate of uninsured driver incidents. The most important thing you can do is to shop around and compare price and coverage. Decide what you want first then make a list, and then find the best price. No matter which auto insurance company you choose, here are some basic tips that can help you save money, and get the best cheap car insurance available.
Look for discounts
Most people are not taking advantage of all the discounts that are available to them. For instance, maybe you now work from home and are driving less than when you bought your policy. This may qualify you for a low-mileage discount. Here are some more possible discounts to check.
- Bundle car insurance with other policies, such as homeowners insurance
- Insure multiple cars with one policy
- Agree to receive bills and documents online
- Pay their entire annual or six-month premium at once
- Have a clean driving record
- Anti-theft or safety features can qualify you for a discount
- Members of particular professional organizations or affiliate groups
Think About Limits and Deductibles
It is not a good idea to give up coverage for a lower policy cost, but consider accepting a higher deductible on collision and comprehensive if it makes sense. Higher deductibles means you would owe more out of pocket if you had to file a comprehensive or collision claim. This can really save you money though, if you rarely drive or are financially comfortable with that risk.
Certain life events could mean cheaper car insurance. For instance, many companies offer a lower rate for married couples or domestic partners. If you have moved to a new city with stellar public transportation, or if you’re commuting by train instead of car, your risk for accidents will go down. This may help your rates go down as well, all you need to do is ask your insurance company.
Don’t Buy Into Commercial Hype
Many companies spend a lot of time and money on commercials. They goad you into a belief that only they have the lowest car insurance rates. The truth is that the best car insurance varies as much as the individuals who need it, and and no single company can claim to be the low-price leader. Some companies have even developed complex predictive models that may charge you higher rates if they think you are unlikely to switch providers. This practice, called “price optimization,” is banned in 16 states. The insurance company that’s cheapest for one person in one place might be the most expensive option for a driver in another state.
Pay All Your Bills On Time
If you improve your credit you can lower your premiums. Your credit is a significant factor in the car insurance quotes you’ll receive so track your progress by checking your credit reports at least once per year/ The exceptions are in California, Hawaii and Massachusetts. These states don’t allow insurers to consider it. Experts say that customers’ credit has been shown to correlate with their risk of filing a claim.
Consider Insurance Costs Before You Car Shop
A review of rates for best-selling vehicles in 25 cities found that the Toyota Camry, for example, cost an average of $187 per year more to insure than the comparable Honda Accord. You probably already know about factors such as fuel efficiency and repair costs when deciding which car to buy, but you should also consider insurance premiums.
You Can Skip Some Things If You Drive A Clunker
If your car is older and has a low market value, it may not make sense to pay for the both collision and comprehensive coverage policies. Collision coverage will pat to repair damage your vehicle receives in an accident involving another car or an inanimate object. Comprehensive pays to repair vehicle damage caused by weather, animals or vandalism, or reimburses you for your car if its stolen. Both will only pay up to the value of your car, so if that value is not very high, why pay more monthly than you have to.
If you’re a safe driver who doesn’t log very many miles, consider a usage-based insurance program, that allow your insurer to track your driving electronically in exchange for possible discounts. It is based on how much you drive, when you drive and how well you drive. If you drive less than 10,000 miles per year, you might be able to save money with a mileage-based insurance program.
In conclusion, everyone knows you should carefully shop around when buying a car, but all too many drivers neglect to purchase insurance with the same level of care. Failing to thoroughly comparison-shop can leave you far from getting the best car insurance coverage for your needs. Having the best car insurance means you won’t find yourself paying significant amounts of money out of pocket after an accident. All it takes is a little research and the willingness to ask the right questions.