Here are 7 easy ways to get the best auto insurance deal possible.
* Multiple quotes
Get multiple quotes - use the internet and call a few brokers. It's easy to put together a few good comparison quotes.
Don't forget to get different types of quotes, such as from a direct selling insurance company; another from an offline broker who maintains a database of quotes; and a couple on the Internet.
Cheaper doesn't mean better. Will they pay if you make a claim? What financial security? What reputation? Check with family and friends and look for reviews online.
* Different types of cars
Insurance costs vary depending on the type of car. Obviously, this sporty $100,000 model costs more to insure than your average runabout. If you are considering buying a new car, check the insurance costs before buying. Once, I set my sights on a magnificent, high-performance and perfectly tuned Pontiac.
Luckily, I checked the car insurance before buying it, because I couldn't get insurance. Every broker, every apartment insurance company turned me down because I lived in a high auto crime area. So I had to forget about my dream car until I moved to town.
* Age and value of the car
Maybe you are buying a used car? Maybe your car saw better days a few years ago, and now much lower values? So why pay for expensive auto insurance? In particular, do you still need full coverage?
A good rule of thumb multiplies the insurance premium by 10 and compares that figure to the value of your car. So if you have a $1,000 premium and your car is worth less than $10,000, you might want to consider whether the package represents good value. If you drop Collision Coverage and/or Comprehensive Coverage, you should see big savings.
* Higher deductibles (excess costs)
Most car insurance companies use deductibles to reduce the cost of the policy. Deductibles, or excess charges, indicate what you pay before your auto insurance policy takes effect. Try asking for quotes with different levels of deductibles and see how your quotes vary.
Most internet quote forms contain a box where you can specify the level of deductible you want. Ask your broker for their recommended level. For example, going from a $250 deductible to a $500 deductible can reduce your insurance costs by 20% or more. Go to $1000 and you'll save a lot of money. But you have to pay the deductible if you have to make a claim!
* Multiple insurances
I suppose it could be under "Get multiple quotes", but it's still worth mentioning separately. You usually get an insurance break if you take out multiple policies with the same insurer.
This can mean multiple vehicles or home and auto insurance. Either way, it's worth asking about multi-policy discounts.
* Low mileage
More and more people are working from home. More trips. Fewer business trips. Low mileage of your car. Maybe you're commuting to work, but carpooling?
Either way, look for low mileage discounts.
* Good driving record
A good driving record always lowers your car insurance costs. Keep a clean driver's license. Don't overspeed, don't drive dangerously, and you'll save money (plus other benefits!)
*Bonus Tip
Ok, I said "7 ways...", but here are some more tips. Install anti-theft devices in your car. Take an advanced driver training course. Use daytime running lights. If you are a student away from home, consider adding to the parent policy.
This short article covers the things you need to consider when buying car insurance. Follow these tips and you'll lower your car insurance costs.
