The major aim of car insurance is to help reduce the financial burden you’ll bear in case the incident you are insured against occurs. Put another way, trying to find that sweet spot between reliable coverage and inexpensive rates for your car insurance can be quite tricky. But it’s not impossible. Here are six tips to help you find inexpensive car insurance.
1. Compare Different Rates
When trying to lock down cheap car insurance, it’s important to get quotes from different companies and compare them to get the best price for your coverage. Consider getting quotes not just from national auto insurance companies, but also from local and regional insurers. You can often find cheaper prices when you choose a local or regional provider.
2. Understand Factors That Affect Your Costs
Insurance companies base the cost of insurance on the risk they take by insuring you. Typically, several factors come into play to assess this risk, including your age, sex, marital status, driving record, credit score, state of residence, car model and make, frequency of claims, and more. Many of these factors are unique to you, so it’s difficult to compare one person’s car insurance policy to someone else.
3. Check Insurance Costs When Buying a Car
If you’re looking to get cheap car insurance, start by looking at the car you drive. Your vehicle’s make and model will affect your insurance rates due to factors, such as the worth of the car, the cost to repair it, and the likelihood of theft and accidents.
4. Ditch Any Unnecessary Coverage
Go over every detail of your insurance policy and remove anything you don’t need. Items like roadside assistance benefits and car rental coverage aren’t always necessary. Credit card companies and sometimes car manufacturers cover some of these expenses. If you are insuring an older car, it may be advisable to skip comprehensive and collision coverage. If your car has a low market value, it may not be wise to pay fees for this coverage. You can also reduce medical payments coverage if you already have health insurance.
5. Claim All Available Discounts
Insurance companies offer a variety of discounts, and it’s beneficial to claim as many discounts as possible, as this will reduce your insurance costs. Some of the more popular discounts include:
Safe driver discount
Anti-theft device discount
Multiple vehicles discount
Policy bundling discount
Good student discount
Low mileage discount
Defensive driver class discount
6. Consider Usage-Based Insurance
If you’re a safe, low-mileage driver, a usage-based insurance program is an option worth considering. Signing up for this program allows your insurer to track your driving habits in exchange for possible discounts based on how much and how well you drive. If you drive fewer than 10,000 miles annually, you can get a deduction in your insurance rate. This insurance program is great for college students, people who work from home, retirees, and those who don’t drive their cars often.
Keeping Your Car Safe on a Budget
Deciding on the most prudent car insurance can help you protect your health, assets, and wallet, so make the effort to determine the type and amount of coverage you need. And, bottom line, make sure to review and understand your policy before you sign an agreement.