Even though car insurance is almost required by all states, most consumers don’t know enough about car insurance to know how to keep their rates as low as possible. Consider that even if you were paying $25 more per month than you could be paying, since car insurance is something that you have for your lifetime, after 30 years, you would have paid $9000 more in car insurance than you needed to pay. Now aren’t there better things you can think of to do if you had an extra $9000 to spend?
Comparison shopping is key for almost anything you buy, and buying car insurance is no different. The much more difficult task is making sure that you are comparing apples to apples so that you know if you are REALLY comparing two identical policies when you get your quotes. Are the deductibles the same? Are the coverage limits for medical and liability the same? Is the property damage ceiling the same? Not all car insurance policies are created equally, and you need to know what you are looking at so that you can be sure that you really are comparing two identical quotes for car insurance.
Here are some things you can do to make sure that you are getting the best car insurance quote possible, which is designed to protect you and your driving habits:
1. Keep your driving record as clean as possible. Having parking tickets is not good, but having traffic tickets that are classified as a moving violation is deadly and will send your car insurance rates through the roof. A squeaky clean driving record is the best thing in your favor.
2. Consider what you can handle for a deductible. If you are in an accident and your deductible on your car insurance policy is $500 (which is pretty standard), and the damage to your car is only $498 to repair, you probably will not even file a claim with your insurance company because they will not pay a dime. In other words, the first $500 comes out of your pocket. Now you might be saying no way, and choose a $100 deductible. You can do that, but note that your insurance rates will rise significantly with that little change. The higher the deductible that you specify, the lower the rates are going to be.
3. Consider what other insurance needs you have, because many insurance companies will give additional discounts, sometimes 15% or more, on each policy if you have multiple policies with them. So can this company also quote your boat insurance, your home owners or renters insurance, your life insurance? If so, look at the bigger picture so you can determine where you can save the most money.
4. What kind of car are you trying to get car insurance for? If you have not purchased the car yet, the cost of insurance for that car is something that should be figured in along with the car payment. The total value of the car is only a part of that equation — all cars are also rated by the insurance companies as far as the typical cost to repair them. It may be typically more expensive to repair a Kia than a Dodge, even if the total value of both cars is the same, so be sure you know how your car is rated by the car insurance companies.
Lastly, take the time to shop around every couple of years. There could very well be a new insurance company in your area that is willing to make you an even better deal. Do not assume that the deal you got 3 or 4 years ago is still the most cost effective game in town.
Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few.
Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance, as well as your circumstances, are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.
These discounts can result in tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don’t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available.
Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who ensure their house with the same company as they ensure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.
Finally, maintaining a clean driving record is very important to receive the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.
Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn’t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance