Car insurance can sometimes feel like an unnecessary expense, paying money for something you may never use. But it only takes one accident for it to prove invaluable, not to mention states require it. You don't have to spend a fortune when you're shopping for auto insurance, as these car insurance tips will show you. There are many ways to shop savvy and obtain discounts so that you save money on your car insurance; some discounts you may already qualify for and not even be aware of. When shopping for car insurance, doing a little homework can save you hundreds, even thousands of dollars a year, which is well worth the extra time and effort. So follow these car insurance tips below and save money on your auto insurance today.
Research How Much Coverage You Need
Before you even begin getting rate quotes, find out how much minimum coverage your state requires, as this varies from state to state. This number will be your starting point as you shop. Then, evaluate your assets and determine how much extra coverage you should add, if any. If your assets well exceed your bodily injury liability coverage limits, attorneys could go after them in the event of an accident in which you're at-fault and the other party's medical bills exceed your coverage limits. Let your personal financial situation guide you, and review this from year to year to make sure your current coverage reflects your assets.
Compare Rate Quotes
Once you've determined how much coverage you need when shopping for car insurance, you can then compare quotes from different companies based on those numbers. This step alone will help you save money on auto insurance that can be quite substantial, so don't skip it! While you can go to specific companies' Websites to get free rate quotes, there are independent sites as well, if you feel more comfortable. As you research your options, keep these things in mind:
• Make sure you're comparing all annual or monthly rates so your numbers add up correctly.
• Jot down an 800 number for each site to get additional information or questions answered.
• Look at the company's payment policy, including when payments are due and how late or missed payments are handled.
• Find any and all discounts that pertain to you and compare the discounts that companies offer; this can make a big difference to your bottom line.
• Look at ratings from actual consumers as well as from official companies to make sure it's a reputable company that will take care of you in the event of an accident.
Research All Discounts
Many auto insurance companies offer discounts to consumers for all sorts of reasons; chances are you already qualify for at least a few and don't even know it. These discounts vary, but it is worth exhausting your options to find the best rates possible. When researching your policy options, find out if these discounts apply to your situation:
• Safe driving record
• Good to excellent credit score
• Safety equipment on your vehicle, such as anti lock brakes, automatic seatbelts, and airbags
• Your occupation (some jobs are considered lower risk to insure)
• Annual mileage (lower yearly mileage can result in a percentage off your policy)
• Affiliations with professional organizations and auto clubs like AAA
• Combining your auto insurance policy with your homeowner's insurance
• Insuring all household cars with one company
• Choosing a vehicle with a lower rate (check with your insurance company before purchasing a new car)
• Installing or having anti-theft devices in your vehicle
• Taking a driver safety course (this pertains mostly to teens, though some offer a discount for those over 55 who take one as well)
• Getting an "early shopping discount" by shopping around for a new policy well before your current policy expires
Pick and Choose Your Coverage Options
You don't have to automatically choose a package offered to you by the insurance company. For instance, you may choose to downgrade or eliminate collision coverage if you have a good driving record or an older vehicle, keeping the comprehensive to cover you in the event your car is stolen. Also, many people opt to assume more risk by raising their deductible, thus lowering their monthly premium. If you raise your deductible from $500 to $1,000, you're paying $500 more in the event of an accident, but you'll save this money in monthly payments, making it well worth the risk for most people.
Decide if You Want to Use an Agent
Researching your options to save money on car insurance can be a daunting task, especially if it's a new process for you or you have a lot of exceptions to consider. Using an insurance agent can streamline this process and save you a lot of headaches. There are two types of agents; those who are bound to a specific insurance company and can therefore only direct you to various policies and discounts within that company, and those who are independent. Independent agents will help you shop around with various insurance companies to find the best deals. My husband and I have used an independent agent for about seven years now and have been very happy with the service and help we've been given. This agent was also able to help us when we bought our first home, switching our company so that we received a more substantial discount when combining our home and auto insurance policies. An agent can also be helpful in the event of an accident; he or she can work with the insurance company to walk you through the process of filing a claim and getting all of the money you're entitled to in the event of an accident. Of course, if you're just looking for cheap, easy car insurance that meets your state's minimums, buying direct from a company without an agent may be the best option for you.
Sources:
Edmunds.com
FiveCentNickel.com
Msn.com
UsaToday.com
Wikihow.com
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