Finding Affordable Car Insurance
Once you have found your dream vehicle, you will have to insure it. Here’s our expert tips and tricks on how to save on the price of coverage.
Shop Around
An excellent way to save money on your premium is to check out quotes online. The Internet allows you to compare hundreds of different insurers, not only by price but also by their level of cover. You will probably be bombarded with offers once you have entered your details, don’t be overwhelmed or pressured into a deal. If you have any old cell phones around the house you may want to enter that number and use a secondary email address as their marketing techniques can be intense.
Take your time to narrow down your selection of quotes to ones that interest you in terms of price while bearing in mind that if you need to make a claim you may prefer to pay a small amount more for better service. Once you have a few names, look into the details and ask any questions you may have. Read online reviews, see who has the most generally positive ones and make direct contact to confirm your offer and to check if there are any further reductions to be made. It may be more convenient to do it all via computer, but you can sometimes get a better deal by speaking to someone directly.
Evaluate Coverage Level
When you take out insurance, make sure that you aren’t signing up for extra coverage that you don’t really need. Extra coverage may be useful for certain situations, vehicles and lifestyles, however, it is not always useful for everyone and in some cases, it represents a waste of money which soon mounts up over a period of time.
Consider your risks, finances, how you would cope with certain situations and carefully read through the policy details concerning each level of coverage you’re considering. If you own your vehicle outright you only are legally required to have liability insurance, which covers the costs of any damages you may cause to others and their property. Collision cover is also recommended and mandatory if you do not own your vehicle outright as it covers the cost of the vehicle in case of vandalism, theft, fire, and collisions.
On top of the two main essential policies you can also take out more comprehensive levels of cover such as gap insurance, which may be required by some financing companies and covers the gap between the actual value of your vehicle and the price that you have taken out finance for. There is also personal injury protection insurance that covers medical costs, loss of earnings and other damages in case of an accident, and uninsured driver insurance in case you are hit by an uninsured driver.
There are many possibilities but you need to question the probabilities of you needing a certain level of coverage and if you would be better off saving on your premiums with less cover. If you’re not sure have a chat with friends and family to see what they recommend.
Increase Deductible Level
Provided you’re comfortable with spending extra money in case of a claim, raising your deductible level can save you a significant amount of money on your insurance payments over a few years. Basically, a deductible is like sharing part of the risk with your insurance company when you make a claim. For example, if you increased your deductible of $200 to $500 or $1,000 you would save money on your monthly insurance premiums, but if you needed to make a claim you would need to cover $300 or $800 more than at the $200 level.
Raising the deductible level is becoming an increasingly popular way to reduce monthly outgoings and provided you can cover the amount, you stand to make great savings. Be aware that deductibles and how they are regulated can vary from state to state and from insurer to insurer, so if this is an idea you’re interested in take time to look into the details relevant to your policy and insurer.
Bundle Policies
With so many people looking around for a better deal, you may find that you can get a one by using the same insurer for more than one policy. It is easier to deal with one company rather than several, reducing time spent managing various different accounts with different companies and certain insurers offer set discounts for 2 or more policies. Even if you aren’t aware of any reduction that they offer, it is worth a quick phone call or email to see what they can offer you. It makes less paperwork for them and for yourself, and you are less likely to move your existing policy elsewhere, so it is also in their interests to make you a good offer.
Raise Credit Score
This obviously won’t happen overnight, but it is worth bearing in mind that your credit score can impact upon the cost of your insurance premiums. If you have recently improved your credit score or are in the process of doing so, you should notice a reduction in your renewal rate. Or you can try shopping around for a new quote.
It is important to note that this also works in the opposite sense, sometimes nothing has changed in terms of claims, address, personal details, but insurance premiums may go up nonetheless if your credit score has gone down. In any case it’s something you will want to keep an eye on, as it will more than likely save you money on your premiums especially now insurers are increasingly using credit scores to calculate the level of risk.
Reduce Vehicle Use
The more you drive your car, the more likely you are to have an accident. So the law of probability goes. If you don’t need to use your car as often as you do and are lucky enough to have great transport links then leaving your car at home more often could lead to a reduction in your car insurance premiums. Of course, this is not possible for a lot of car owners, but if you could car pool or cycle to work, you should see your premium go down as well as saving you money on fuel costs. This could also be useful to offset any longer trips that may bump up your mileage significantly otherwise.
When taking out car insurance it is important to take your time. Too many people rush into a contract without fully understanding the level of cover they really need. Insurance companies can be extremely pushy and often take advantage of first-time car owners. You need to check out multiple companies, try your home or health insurance provider for quotes and read up on general experiences online to get a feel for how customer service is rated. You should also try asking friends, family and colleagues about their experiences and see if they have any recommendations. Don’t sign up until you feel comfortable with the pricing and level of coverage offered, like most things in life an offer that’s very cheap can also mean there’s some corner cutting going on and if you need to make a claim you’ll need a professional company with a dedicated customer service team.