People buy car insurance since it is required by most states and at the same time, this gives them assurance that they are financially protected from circumstances that could damage their cars and suffer losses due to car accidents. There are different ways to save on car insurance. This article will give you tips on how.
Shop for different quotes
Different companies have different price listings so it pays to shop around. Start with at least three price quotes. You can call different companies directly with their 800 numbers or you can easily get information from the Internet. You can also check with your state insurance department who can provide you with comparisons on the prices charged by the major providers.
Since you will be investing your money on the insurance company, you should have peace of mind that it is financially stable. You can inquire of the financial standing of an insurance company with independent companies who research the background of insurance companies such as A.M. Best (www.ambest.com) or Standard & Poor’s (www.standardandpoors.com). You may also consult with consumer magazines.
There are different types of insurance companies. You can get quotes from them through their own agent. There are also agencies that have the same name as the insurance company. You may also get quotes from independent agents who sell policies from several insurance companies. Some companies opt not to use the service of such agents. These companies usually sell directly to customers over the phone of through the Internet.
When shopping, do not depend on the price alone. You can solicit the recommendations of family and friends. Service is what matters especially in times that you will need to file for a claim. Find out if the company has a lot of consumer complaints by participating in forums. The people who have complaints are usually the ones who make posts. Your state insurance department also has access to this data.
Compare insurance costs before you buy a car
Before you decide to buy a new car, you should check how much you will be paying for insurance first. Car premiums are usually based on the car’s sticker price, the car’s safety record, the costs involved for repairs and its likelihood to be a subject of theft. A lot of insurers offer discounts if the car to be insured has safety features that will reduce the risk of injuries and theft. You can possibly get discounts for anti-theft devices and daytime running lights. You can easily get such information from the Insurance Institute for Highway Safety (www.iihs.org).
Look for a higher deductible
Deductible is the cost you have to pay before your insurance policy kicks in. If you request for a higher deductible, you can lower your policy costs with lower premiums. If you increase your deductible from $200 to $500, your collision and comprehensive coverage can go down as much as 15 to 30 percent. If you go even higher, say $1000, this can save you even more for up to 40 percent. Remember that when you choose a high deductible, you should have enough money set aside to cover for it since this will be very important in times when you need to file for a claim.
Opt for minimal coverage for older cars
If your car is not really worth that much, you can consider dropping collision and/or comprehensive coverage. You can do this if your car is worth less than ten times your policy premiums. If you want to know the worth of your car, you may consult with banks and auto dealers or you can check it online with Kelly’s Blue Book (www.kbb.com). Make certain to review your policy coverage at renewal time to see if there’s a need to change any features.
Buy auto and homeowners coverage from the same insurer
Most companies offer discounts if you buy two or more types of insurance from them. This is also usually the case if you choose to insure more than one car from them. Companies may also offer discounts if you have been with them for a long time. But if you shop around, there’s a possibility that you can save money if you buy from different companies as compared with a multi-policy discount.
You must have a good credit score
If you have a solid credit history, you may cut car insurance costs. Insurers usually use customer’s credit information as a basis for their car insurance price. Always protect your credit standing by paying your bills on time. Never obtain more credit than you can keep and keep credit balance low. Make sure to check your credit score on a regular basis and if there are any errors, have this corrected.
There are many ways to save on car insurance. You must always exercise good judgment in order to be able to save on money. Having the right insurer who can give you discounts and the best service may be hard to find, but not nearly impossible.