There are multiple factors to consider when looking for the best car insurance and comparing auto insurance providers can easily become a tedious task.
The auto insurance companies know that the more difficult it is to comparison shop, the more likely you are to agree to the first insurance pricing and auto policy you are offered. Once you commit, you cannot turn back.
- 1 Cheap Car Insurance Quote
- 2 Always Shop Around for Auto Insurance
- 3 Keep your Driving on your vehicle Low
- 4 Make Sure You Get all the Insurance Discounts You’re Entitled To
- 5 Keep Your Low Rates Low
- 6 Get a Higher Deductible
- 7 Consider Pay-Per-Mile Insurance
- 8 Let Your Insurance Company Track You – Never a Good Idea
- 9 Don’t Pay for Insurance Coverage You Don’t Need
- 10 Pay Your Auto Insurance Bill in Full
- 11 Consider Car Insurance Costs Before You Choose a Car
- 12 Get a Short Loan and Make a Big Down Payment
- 13 Don’t Always Make an Insurance Claim
- 14 Update Your Auto Insurance Policy Annually
- 15 Questions People Ask
SavingsIf you are looking for the lowest rate on your car insurance, you need to make sure you maximize the best discounts available.Every Auto insurance company offers special ways to lower your car insurance premium.Cheap Insurance QuoteMulti-Car discount
Good Student discount
Take advantage of low mileage discountsAsk for higher deductiblesMore Less
Reduce coverage on older cars
Auto Insurance is very expensive today and the insurance company profits have doubled or tripled in the last few years. Auto insurance companies have gamed the system in their favor and the CEOs are vacationing in the Caribbeans at your expense.
The goal of this guide is to help you learn about the factors that go into setting car insurance rates and the strategies you can use to get the best deal.
Always Shop Around for Auto Insurance
When shopping for car insurance policy, one of the best ways to save on premium is to compare prices from multiple insurance companies before you commit to buying.
While it’s easy to just go with the insurance company you have had forever, they may not offer you the best price or potential insurance discounts.
Acquire the knowledge of coverage required by your state and your lender or leasing company before you buy. Compare the premiums offered by various insurance units online and select the policy that suits your needs. Never pay more.
Keep your Driving on your vehicle Low
Surprisingly, some car insurance agencies offer discounts for policyholders who put minimal miles in their car each year. Minimal miles entitle you to cheaper auto insurance rates.
If you drive less then 5000 miles, you get a better discount.
Make Sure You Get all the Insurance Discounts You’re Entitled To
Everyone of us would like to own a car and we all aspire to get the car insured adequately. However, deciding on a suitable auto insurance, that can save maximum money is a very tedious task.
The car insurance companies know that the more difficult it is to comparison shop, the more likely you are to agree to the first pricing and policy you are offered. Once you commit, you cannot turn back.
So, before deciding, ask specifically for available discounts, and you’ll be surprised to know about the various auto insurance discounts.
Some of the most common policies that companies offer are policy bundling discounts, driver education discounts, and car insurance discounts for students, teachers, active duty military, and veterans. The availability of these discounts vary in every state or with every insurance outfit.
Your profession and membership to select associations are an important criteria in deciding your eligibility.
Save 10% or more on all of your policies when you bundle your auto and home insurance policies together through the same insurance company. Getting multiple policies, like homeowner’s or auto insurance or renter’s policies with one insurance company makes you eligible for getting the bundling discount or multi-policy discount.
Insurance companies are wary of discounting homeowner’s insurance in flood-prone areas. Likewise, insurers are reluctant to offer coverage to customers in low insurance areas. Nevertheless, the convenience of using one company for insurance policies can save money and hassle.
Tell your company where you work. Auto insurance companies offer different rates for different jobs and simply telling your profession and asking for discounts may make you eligible for one.
A student who is below 25 years of age, having a full-time student status, having high grades can qualify for car insurance. This is highly motivational for the students academic wise because if the grades slip, he or she will cease to get the insurance coverage.
Other organizations that frequently offer affinity discounts include college alumni organizations, professional trade associations, and financial institutions such as credit unions.
Parking areas also lower the rates of your premium, provided you park in residential areas, nearby garages, or secured places.
Keep Your Low Rates Low
Try to gain as many grades as possible while driving safely. Following the rules and regulations of roadways traffic, thereby getting a clean chit will ensure that you pay low premium amounts. Drivers with a history or accidents or traffic tickets are prone to higher premiums. Car insurance drivers are categorized under low-risk and high-risk. Evidently, one should fit in the low-risk to attain maximum benefits.
If you happen to get a ticket, you will be offered driving lessons by various communities, and when you enroll yourself in one of these, you automatically qualify for auto insurance discounts. This is an easy way to erase the ticket off your driving record and contribute to maintaining road safety standards.
The location you’re in definitely plays an important role in deciding the insurance claims. Some areas have higher cost claims histories than other regions. So if you’re moving to another area or an area with a different zip code, you’ll want to check with your insurance company to see if you can get a better deal.
Keep track of the number of miles you have covered. If for any reason, you have covered less distance in a given period of time, report it to your insurer. Lesser the miles covered by your car, lower the risk of accidents. So low-mileage vehicles are prone to low cost of insurance than those commuting longer distances. Some insurance companies offer low-mileage discounts. Senior citizens and people who travel only occasionally by their car can avail these discounts.
Get a Higher Deductible
Take risks that will ensure higher deductibles thereby lowering the insurance rates. One of the major factors that auto insurance rate depends on is risk. Check your state DMV insurance requirements and those of your lender or leasing company before you start raising your insurance deductibles. Most auto loan and lease contracts come with specific coverage limits and deductibles.
Consider Pay-Per-Mile Insurance
A pay-per-mile or usage-based insurance policy will suit you, if you do not enjoy long drives or drive only limited amount of miles per year. With usage-based coverage, you generally pay a base rate and then a small fee for extra mile you drive. For this the insurance company will give you a telematics device to plug into your car’s OBD port II to track your mileage. If you’re a frequent driver, then the pay-as-you-go policy will be quite expensive. Some companies charge daily for long road trips which goes easy on your purse.
Let Your Insurance Company Track You – Never a Good Idea
A new way of saving money is by letting your insurer track your time behind the wheel. It is unfavorable for rash drivers. The insurance company can track your driving habits, the distance you cover, and know your every move behind the wheel by plugging a telematics device into your car’s OBD port II.
If you’re not careful and run the risk of accidents or collisions, (i.e. brake hard, accelerate aggressively, or trigger advanced safety systems) then their assessment of your driving will land you in trouble.
If you are a smart driver, let your insurer track you and get low insurance costs. If you’re a driver who throws caution to the wind, then tracking will not be a good idea!
Don’t Pay for Insurance Coverage You Don’t Need
There is no need to pay for insurance products and add-ons that you do not need. For example, if you have a roadside insurance from AAA, then abstain from paying a second time through your insurance company.
Apply for gap insurance coverage because it is easy to pay long after you do not need it. Gap coverage ensures you pay off your loan or lease in the event of a car theft or your car is declared a total loss. Save money by dropping gap insurance, if you have reached a position of positive equity on your car loan, or the amount you have left to pay on your loan or lease is small. However, some insurance companies do require gap coverage to be in place for the duration of the lease.
Pay Your Auto Insurance Bill in Full
Car insurance bills can be paid all at once or in monthly installments. By paying the bill over a period of months will require you to pay extra financial charges. Though this adds up to be only a few dollars, over time the financial charges can add up. Paying the bill in full eliminates the possibility of extra charges.
Policyholders can pay premiums via credit cards that has cash back rewards, and pay the balance bill amount before the interest is charged. Just remember to pay off the credit card balance monthly without incurring any interest or else the credit card interest will negate any advantage of using the rewards card.
Consider Car Insurance Costs Before You Choose a Car
Most consumers don’t think of car insurance until they own a car. Practically, car insurance consideration should begin at the car buying process. Auto insurance depends on various factors such as horsepower, safety safety equipment, cost of repair and so on. Most cars come with anti-lock brakes or anti-theft devices, so you won’t get discounts on them, but you may come across discounts for multiple airbags and other safety systems. The latest advanced safety technology, such as automated emergency braking, haven’t been around long enough to even consider them effective in reducing claims.
Provide a vehicle identification number (VIN) to get a precise insurance quote for a new car. The VIN allows an insurer to see the exact equipment that is on the vehicle.
Get a Short Loan and Make a Big Down Payment
Keep the car loan as short as possible by making a big down payment. This will help to avoid gap insurance, as the loan to value (LTV) becomes considerably low.
If the LTV is 100%, your car insurance company will likely be able to pay back your entire loan if the car is stolen or declared a total loss. If the LTV is higher than 100%, then you will be required to make a down payment on a replacement car.
A long-term loan is complicated and there are many other reasons why they should be avoided.
Don’t Always Make an Insurance Claim
Don’t immediately call your insurance agent, if your car has collided or met with an accident. In the event of a mishap, assess the extent of damage. If the damage is severe, go ahead and call the insurance company, but if the damage is minor and does not harm anyone’s property, then just go to the body shop and get an estimate. The estimate may be close to your deductible amount that it’s not worth filing a claim and risking a hike in your premiums.
Unless you’re sure to want to file a claim, do not contact your agent because merely seeking advice regarding filing a claim will be counted as an accident on your driving record.
Update Your Auto Insurance Policy Annually
Don’t stick to just one insurance company in the hope of getting significant discounts. Instead, it will serve you well if you look around for great quotes from other insurers every year or two. Online tools also may help you with getting quick and easy quotes.
Make it a point to talk to your insurance agent yearly about any new promotions or discounts, if your circumstances have changed from the past year, you can definitely take advantage of this. Or let agents from another company visit you and discuss new pricing that includes similar coverages. Ultimately, you can decide what you want.
Auto insurance is unavoidable and picking the right strategy can save you quite a lot of bucks in the long run. Evidently, taking the right decisions at the right time can make your life on the road smooth without any hiccups!
Questions People Ask
Who offers the cheapest car insurance?
How can I get a free insurance quote?
Compare insurance quotes online or over the phone and maximize your savings. If the insurers show prices, filter it down to the most relevant option and sometimes get a free quote by doing so.
What are the 10 best insurance companies?
USSA, Geico, Allstate, State Farm, Farmers, Progressive, American Family, Nationwide, Travelers.
Why should I compare auto insurance quotes online?
Comparing insurance quotes online can enable you to bring down your savings to the maximum by choosing the option that suits you and your car the best.
Which auto insurance companies offer the cheapest quotes?
First, USSA, second Geico, third Travelers.
What is the best auto insurance company?
The best car insurance company is the one with the
Lowest Auto Insurance premium
High customer satisfaction scores
Relatively few complaints to insurance commissioners
Always check insurers ratings by J.D. Power