If you are shopping for auto insurance, don’t overpay. Here are 10 tips on how to be sure that you are getting the best auto insurance quote.
1. Take your time and shop around. The cost of car insurance can vary widely from one company to another. To be sure you get the best auto insurance quote, take the time to obtain at least three quotes before you choose a policy.
2. Only purchase as much auto insurance as you need. For example, you might consider skipping collision insurance if you drive an older model car that is worth less than $1,000.
3. To get the best auto insurance quote, increase the deductible on your auto insurance policy if you can afford to. Whether this makes sense for you will depend on whether you can afford to pay $500 or $1,000 up front in the event of an accident. If so, raising the deductible from $250 to $500 might save you 10% or more, and hiking it to $1,000 would result in ever greater savings.
4. Before requesting a quote, find out what discounts are available to you. Most auto insurance companies offer numerous discounts, including some that are not well known. For example, you might be eligible for a discount if you participate in a low-risk occupation, are a member of a professional organization, have certain safety features (such as anti-lock brakes) on your car, are a senior citizen and/or have recently taken a defensive driving course. Also, ask the human resources department at your company whether your employer offers group auto insurance discounts.
5. To get the best quote on auto insurance (and all you insurance) buy as much as you can from one company. You can usually save money by combining coverage and purchasing multiple policies, such as both your homeowner’s and auto insurance policies, from the same company.
6. Be sure you are buying the right auto insurance policy for you. For example, if you don’t put a lot of miles on your car each year, you might want to investigate premiums on low-mileage auto insurance policies (sometimes called pay-as-you-go policies) if they are offered in your state. Premiums on pay-as-you-go policies may be based on a specified range of miles driven or actual miles driven, and, for some drivers, can be big money savers.
7. For the best possible auto insurance quote, be sure your credit rating is in good shape before you start shopping, because the auto company will take it into account in pricing your policy. If necessary and possible, take steps to improve your credit rating before you buy a policy so that you can get the benefit of your better rating for the full term of the contract.
8. Maintain a good driving record. Most auto insurance companies offer discounts for having clean driving record for a defined period, usually three years. While there is nothing you can do about past blemishes on your driving record, you can work at keeping it blemish-free in the future, which will eventually pay off in lower car insurance premiums.
9. Skip the extras that can drive up the cost of auto insurance. Omitting towing, car rental coverage, and loss of income from you policy can lower your premiums.
10. If you are shopping for auto insurance when your existing policy is about to expire, review it carefully. This is a good time to reevaluate the deductible, collision coverage, policy extras and discounts to be sure that you are not paying for more coverage than you need and to ensure that you are getting all the discounts you deserve. If your credit score has improved, make sure that your agent is aware of that and take advantage of the renewal discount.
While saving money on auto insurance is important, if possible, don’t make price the only criteria for choosing a policy. Talk to friends and family for recommendations and feedback about auto insurance companies and be sure that the policy you select is right for you.
www.edmunds.com, How to Save Money on Auto Insurance – Edmunds.com
pueblo.gsa.gov, FCIC: Nine Ways to Lower Your Auto Insurance Costs
www.ohmygov.com, Is pay-as-you-go car insurance a viable alternative?