Great Cheap Car Insurance
Understanding car insurance and how it works isn’t high on anyone’s list of enjoyable things to do, but it’s imperative every driver learns to understand how it works. Drivers need car insurance, and most prefer cheap car insurance in terms of premiums. Asking an insurance agent to provide the most coverage for the cheapest price is ideal, but it’s not how it works. The best coverage is often more expensive, and settling for cheap car insurance sometimes means settling for too little coverage. This doesn’t mean cheap car insurance isn’t available with more options, but it’s not always so obvious. If you’re looking for more affordable car insurance, there are numerous tips associated with finding the best coverage for the best price.
This should sound like common sense, but it’s not always. One car company might say their prices are the cheapest, but it’s not always true. Finding comprehensive and cheap car insurance isn’t possible unless you’re able to compare policies and quotes. Take the companies you are comfortable working with or that promote the lowest prices and compare what they have to offer. Don’t be afraid to tell them what you want or that you haven’t a problem looking elsewhere if they can’t offer what you desire.
Check Your Credit
If you want cheap car insurance, check your credit score. If you have bad credit, you’re going to pay higher premiums. It’s just standard practice within the insurance industry. However, you might have a long history of on-time payments, low debt-to-income ratios, and low to no revolving balances and still end up paying more. Just because you’re responsible with your credit doesn’t mean you don’t have a bad score. You might have been the victim of identity theft, or you could be the victim of a common error on your report.
All it takes is one credit card company to report someone else’s delinquent payments under your name, or one credit bureau employee to make a mistake entering information into their database to ruin your good credit score. Check the report, look for errors, and request any mistakes are fixed immediately if you find them.
Consider Your Vehicle
If you drive an expensive brand-new vehicle or one worth a lot of money, you must have collision and comprehensive coverage on your car. If you drive an old car that’s only worth a few hundred dollars at best, you can skip both. These policies only pay you what the car is worth, and paying a few hundred dollars every year for these policies makes very little financial sense if your car is only worth $1,000 or less. Do the math, figure the value, and change your insurance options. You can create your own cheap car insurance if you drive something old and almost worthless.
Get the Cheap Deductible
Many insurance agents tell you the best way to get cheap car insurance is to opt for the most expensive deductible available. It means paying less on a monthly basis and more if something happens. Others disagree this is the best option. If the average savings a driver receives from switching a $500 deductible to a $1,000 deductible is only $200. If you go to $2,000 as a deductible, you’re still only saving around $350 per year. At $350 per year savings, it’s only an additional $29 per month in your pocket. It sounds significant but if you’re involved in an accident and forced to pay your deductible, you’ll wish you paid the additional $29 per month for a $500 deductible when you have to pay $2,000 out-of-pocket.
Call the Insurance Company Before Shopping
Saving money by finding a cheap car insurance policy doesn’t necessarily mean dropping important coverage to pay lower premiums. All drivers have the right to ask for discounts from their car insurance agency as well as shop around until they find an agent willing to offer those discounts. Ask for discounts for cars with the following:
– Anti-theft features
– Driver safety features
You can also report your latest move to the agency to see if you’re in a neighborhood with a lower crime rate. This can help you lower the cost of insurance premiums. Every little bit helps, and you won’t know if you can save anything until you ask. Be prepared to provide proof of any claims you make asking for a discount, and see how fast your rates will drop.