Getting the best deal on car insurance is quite the endeavor. It is something we all need, but really don’t understand all the ins-and-outs of insurance policies. Thankfully, there are tons of options, ranging from the big national insurance companies to the local and regional insurers. The internet can be your best tool when searching for the cheapest rates. But like with most things online, the abundance of choice and information can be overwhelming.
This article is designed to help you to cut through all the noise and find the best rates. There are a handful of things to look for when in the market for car insurance. These are things to help you get the coverage you need at the price you want.
See the Discounts a Company Offers
One of the biggest factors in deciding what insurance company to give your business to is the perks they can offer you. Some of the discounts you can receive typically include: multiple cars on one policy, setting up autopay, going green and receive documentation online, safe driving and many more.
An important thing to remember with scouting out discounts is to understand that you may not qualify for all of them. Just because they offer them, doesn’t mean it will be in your policy. It is best to find the final total across all insurers and make the decision that favors you the most.
Credit Score and Car Insurance
Aside from a couple of states (California, Massachusetts and Hawaii) your credit score has a tremendous impact on the quotes you get for car insurance. The reason for this is the argument that a customer’s credit score is correlated with the odds if filing a claim. The worse credit you have, the chances of paying more for insurance is greatly increased.
Paying your bills on time and shrinking your debt load will help you improve your credit score. Just another reason to be financially stable and responsible.
Increase Your Deductible
You can save money if you raise the deductibles on your comprehensive and collision coverage. It is a roll of the dice, but if you are a safe driver or if you don’t drive much in general, this course of action can be very beneficial for you.
Insurance Costs for Certain Cars
The type of car you have plays a factor in the amount you pay for your policy. Sports cars are the biggest offenders for inflated premiums. Of the top-selling vehicles, some of the cheapest rates can be found in the Jeep Cherokee, Honda CR-V and Subaru Outback. Insurance policies should be another consideration when purchasing a car like we do with fuel efficiency.
A fairly new development in the insurance coverage game is a usage-based system. These policies can be very beneficial to those who are safe drivers and also do not have a high usage with their vehicle. There are programs offered like Allstate’s Drivewise or Progressive’s Snapshot that monitor your driving habits (like hard breaks or unsafe accelerations) and gives your discounts based on how well you drive.
Another option can be if you drive less than 10,000 miles per year, you can save money. These mileage-based systems are available in limited states as of this writing, but their popularity are beginning to catch on in other states.