It is pretty easy to find really inexpensive, cut-rate auto insurance, but that is not usually the best way to go. Insurance experts and consumer advocates agree that cheapest is not always best when it comes to protecting one of your biggest investments. The key is finding the lowest rates available from an insurance company that will come through when you need them. To do this, you need to figure out what types of coverage you are required to carry, research the reputations of insurers, and find out every discount you may be eligible for.
Steps to Finding the Lowest Rates
You need to be your own activist when it comes to purchasing affordable auto insurance. Don’t settle for the first insurer you come across. Here are some tips for getting the lowest premiums without skimping on quality.
- If you can, purchase a budget-friendly car. If you can’t afford to fork out a lot of money for insurance, and you are in the market for a new vehicle, get one that is inexpensive. The newer and more expensive a car, the higher the insurance costs.
- Do your research! Most states have minimum required coverage for liability insurance on your car. Look up those insurance requirements, and if you need to, stick with the minimums.
- Consider a high deductible. Choosing the highest deductible will significantly lower your premium.
- Look into your credit score. Some states let insurers use your credit score and history to create an insurance credit score, which is then used to determine your premium. Do what you can to fix issues that may be lowering your credit score.
- Narrow down your choices of insurance companies from which to obtain quotes. Your state should have an insurance commission website, which will list plenty of your area’s reputable insurers.
- Use word of mouth. Ask friends and family if they have an insurance agent and if they get quality service and affordable rates from them.
- Ask for all the discounts! Insurance companies offer several different discounts, including discounts for low-mileage drivers, retired drivers, students, students with above average grades, vehicle safety devices, and multiple-line discounts.
- If you drive an older vehicle and do not have a loan on it, you can think about eliminating comprehensive and collision coverage.
Once you find affordable auto insurance that you are satisfied with, make sure you review your policy every year. You may be eligible for discounts that you were previously not granted, especially if you moved or changed jobs and commuting mileage. Happy hunting!
March 22, 2013 by Jamie Rettig