Finding the best deal on car insurance can be challenging. However, if you do your homework you might be surprised what kind of rates you can find. It’s really the same as learning how to buy a car – you need to shop around. Here are some tips to help you figure it all out and hopefully reduce your premium:
Get Numerous Quotes
Don’t give up after only three or four insurance quotes. Some states have upward of 200 insurance carriers. You never know what you’ll find if you simply continue to look after those initial quotes come in.
Request a Higher Deductible
When you request a higher deductible, your base insurance price goes down substantially. For example, increasing your deductible from $100 to $400 could reduce your collision and comprehensive coverage cost by at least 20%. Hiking the deductible to $1,000 can save about 40%. Prior to asking for a higher deductible, it is a good idea to set aside money in case you do have a claim.
Reduce Insurance Coverage on Older Model Cars
Often, you can save a lot of money by buying only liability insurance for your older, less valuable car and letting go of the collision rider. If your car were worth a lot of money, however, it would be better to go for the full coverage.
Purchase your Insurance From the Same Company That Insured Your House
You will find that most insurance companies will give you a decent price break if you purchase more than one kind of insurance from them.
Be Responsible and Pay Your Bills on Time
If you pay your bills on time, you will establish a solid credit history. This can cut your insurance costs over time. Check your credit record regularly and correct any errors that might show up so that your record remains up to date and accurate.
Purchase a Theft Device for Your Car
The majority of new cars these days have theft devices. Most are automatic but some have to be activated manually. In either case, this is a great way to get discounts on car insurance.
Have More Than One Car? Ask for Multi-Car Policy Discounts
There are times when insuring two cars can be the exact price as insuring one. If you own two cars, it is smart to ask your insurance agent to give you a discount on one or both cars. You may not even have to ask, as this is standard practice for many insurance companies.
Car insurance is, after all, mandatory if you want to be out on the road. Insurance rates are going to vary according to the type of car you buy, your driving record, age and other factors. If you do not shop wisely and do your research, you could end up paying much more than what you could if you took the time to investigate all of the various discount options there are out there. Most of the time, you will be able to find discounted rates. Just remember, however, that insurance companies are in the business to make money. If one won’t give you a price reduction, move on to the next.