Lower Your Auto Insurance Coverage Costs - 7 Simple Steps
71Everyone is required by law to have auto insurance. So if you must have it, why not get the cheapest coverage possible? Here are 7 simple steps you can take to get the best auto insurance coverage deal possible:
1. Compare insurance company prices
The price difference from company to company can be surprisingly significant. Car insurance companies determine a price for your coverage by adding or subtracting money based on your answers to each question they ask you. Depending on your risk factors, you may have a high or low price. However, what one company considers a high risk factor another company may view as an unimportant one. Each company has its own rules as to what they believe should raise or lower your premium. Shopping around can only help you in finding a better deal.
2. Purchase your policy online
Getting a quote for auto insurance coverage online is very convenient, but there is more to it than just that. A lot of companies now encourage buying coverage online by offering discounts. Their motivation is that buy having people buy online, the companies are saving both time on the phone, as well as the time of their employees. To reward you for making things easier, policy providers will give you a discount on your coverage. If you have already gotten a quote via telephone, try looking online, and the price should be significantly lower.
Check Online for the Lowest Auto Insurance Quotes Here...
3. Tell the truth about the value of your car.
Many people have difficulty being realistic about what their car is worth. They often state an amount that is higher than the real value when asked during the insurance quotation process, because they think this is what they will get back in the event of a claim. In reality, the company will only pay out the value of the car at the time of the claim, not what you stated for the quote. By stating a value that is higher than your cars's actual worth, you can raise your premium without even realizing it.
4. Use "Third Party Only" coverage
The minimum amount of coverage legally required is "Third Party Only" coverage, which is incidentally also the cheapest. In general, you should consider this type of policy if your car is of a somewhat low value. If an accident occurs, any damage to a third party vehicle will be covered, but any damage to your vehicle will not. This is why it pays to have this kind of coverage if your car doesn't have much value - it probably isn't worth the price of a fully comprehensive policy, as long as you are not too concerned about damage to your vehicle.
5. Get rid of unnecessary drivers on your policy
The greater the number of drivers on your policy, the greater your premium. Many people include several additional drivers in their coverage just in case they will be driving their car, but this also means that their cost of coverage will be driven up. It pays to only include people that you are certain will be driving your car, because this will lower your final insurance cost. In the event that an unnamed driver needs to drive your car, most car insurance companies will allow you to temporarily add their name to your policy.
6. Make your car more secure
In calculating your insurance price, theft of and from your car are factors that are taken into consideration. In most cases, insurance companies will give you a discount on your premium for having better security precautions. Installing an alarm or an immobilizer will result in a small reduction in price, and having a tracker device installed can give you an even bigger discount. Some companies will even require you to have these security devices installed before they consider giving you a quote.
7. Cut down on your annual mileage
The number of miles you put on your car per year is an important factor in your auto insurance coverage cost. The more miles you put on your car, the higher your premium is likely to be. Auto insurance companies often have a suggested amount of annual mileage for you to follow. Try to estimate approximately how many miles you will most likely use by the end of the year. You may find that this total is less than the amount suggested. It is important however that you give an honest answer to this question, or else you will not see a reduction in your premium.
Check Online for the Lowest Auto Insurance Quotes Here...
*Bonus Tip!*
-Before purchasing a new car, check to see how much auto insurance coverage would cost for that particular model and year. You may be surprised how much of a difference there is in premiums from car to car. In some cases, a more expensive car may not necessarily mean a higher cost for auto insurance coverage. For example, an old "muscle" car will probably cost more to insure than a newer car with more advanced safety features. Be smart and check ahead on the possible cost to insure a car you are thinking of buying.
Follow these basic steps and you'll be well on your way to cheaper auto insurance coverage!
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Thanks. One mistake I have made a few times in the past was the last tip - purchased a car without researching how much it would cost to insure it. Then I got a big surprise when I found out how much it was to insure! Also, just because a car is more expensive doesn't always mean it will be more expensive to insure: some of the more expensive cars I've owned that had good safety ratings and features were actually pretty reasonable to insure.
Ms Re 2 years ago
All of these are so true. during a rough time I only had the 3rd party or liability coverage. It was such a piece of mind from not having insurance at all. All part of defensive driving too!