Owning a car is definitely among the best feelings in the world. The sense of control and command over one’s life that comes with investing in a car is indescribable. However, dealing with car insurance is neither pleasant nor easy for most people. Very few even understand how it works.
Therefore, it makes sense that so many people find frustrating results, considering that they don’t educate themselves on the nuts and bolts of insurance. Also, money does not grow on trees. Keeping that in mind, let’s take a look at eight tips to getting cheaper auto insurance, so you can save more.
Do your homework
If this is true for shopping, then it is also true for buying coverage. Don’t make the mistake of assuming the first quote or two is the lowest. You need to take your time and compare multiple rate quotes.
Yes, many companies out there will try to convince you that they provide the cheapest insurance, but what works for some may not work for others. It’s just smart not to trust any organization blindly and compare various insurance plans thoroughly so that you can reach the best decision for yourself.
Moreover, while you are at it, why not give Goodtogoautoinsurance a try? After all, you can buy cheap car insurance with no deposit in only a few minutes.
The best solution might not be the obvious one
That may sound like a confusing statement, but let’s dig a little further. The first organizations that pop up in our minds when we think of auto insurance are the big ones, like Geico and State Farm. However, just because they are bigger, does not mean that they are also the best choice for you. Their plans might not suit you at all. Worst of all, they could cost more than other less famous carriers that are more well known.
Therefore, it is important not to neglect other local or regional insurance companies, as they might be a better fit for you. This is related to the very first point; don’t trust a single organization, and be sure to compare plans before making a decision.
If you are scouting for other insurance options, it might be worth your time to check out Goodtogoautoinsurance, which promises to provide you with low cost, direct rates online.
Improve your credit score
It’s so important that you maintain a good credit score if you want to qualify for the cheapest car insurance. That means paying your bills on time each month, and ensuring that you have paid off any outstanding unresolved debts.
Insurance companies’ factor in the applicant’s credit score when preparing premium pricing. A study found that poor credit can increase a customer’s car insurance rates by hundreds of dollars per year. Insurance companies themselves state that customers credit score has been shown to be linked with the frequency of claim filings. Higher credit scores correlate to lower claims being filed.
Maintain a healthy credit score and track it regularly to improve your chances of getting cheaper premiums.
Consider insurance costs when you’re buying your car
Most of us are too engrossed in the finer points of the car were in love with to even think about its eventual insurance costs. We cast a proud glance at the sleek, carbon-fiber body. We pontificate about the mileage and fuel efficiency, but most don’t think about what it might cost to insure it. Don’t let this happen to you.
If low cost auto insurance is something that matters to you, you should factor it in your car buying decision carefully. Research has shown, the Jeep Cherokee and the Subaru Outback are among the cheapest cars to insure, so take a look at them.
Of course, feel free to conduct your own research into a car that is optimum for you in every respect, especially regarding insurance costs.
Keep an eye out for discounts
Insurance companies ensure customer loyalty and satisfaction by offering a host of discounts and price cuts. The customers who get these perks tend to be those who have a clean driving record, own a car with special safety measures or belong to a particular professional organization or group.
Now, you don’t have to possess certain privileges to get price breaks. You can be on the receiving end as well. If for instance, you agree to receive documents online, ensure multiple cars with the same policy or plan, or pay your entire annual premium at once, you can save a lot. It makes sense to compare the discounts offered by various companies before making a final decision.
Speaking of perks, did you know that Goodtogoautoinsurance allows you to buy coverage with only a $20 down payment? That’s all the more reason to give them a shot!
Carefully Consider Collision and comprehensive coverage
Before you buy a policy, you need to educate yourself so you can make the best possible decision. You might have heard of collision and comprehensive coverage before. You might also have heard from an agent or broker that you should always buy this type of plan. However, how important is it?
Collision coverage is supposed to cover repair costs if a car is involved in an incident with other vehicles. Comprehensive coverage will pay for stolen cars or damage caused by weather and vandalism.
While they are essential, the problem is that the maximum amount that they pay is limited to the value of the automobile. Therefore, if your vehicle is old or has a very low market value, it might make more financial sense just to buy liability coverage.
Mileage-based insurance programs might make sense for you
If you happen to be the kind of person who doesn’t drive a lot, you should consider a pay-per-mile or mileage-based insurance program. Thoodis is where the insurer tracks your driving, in exchange for insurance perks for you, based on how much you drive and how efficiently you drive. You can save 30% or more per month with this type of plan.
You could increase your deductible and save
Raising your deductible is an easy way to save 20% or more of your policy. A deductible is simply the amount you pay first to the insurer when a claim is filed and processed. So, let’s say your deductible is $500 and an accident costs $6,000. You would pay the deductible amount of $500 upfront, and then the insurer would pay the remaining $5,500. Both you and the carrier share in the cost of the accident.
Raising your deductible might make sense for you because it can lower the amount you have to pay on your insurance premium. Just make sure you have the amount set aside in the event you file a claim.
Now that you know how to get cheaper auto insurance, you can start comparing quotes. Get started now by entering your zip code.