Best Ways to Find Cheap Car Insurance
For those who are looking to save money, it is worth taking the time to find cheap car insurance. For the few minutes it takes, it can save hundreds of dollars per year. Following five simple tips can help consumers find the right company at the right price.
1) Comparison Shop
Not all companies are the same when it comes to pricing. Prices can vary from a few dollars to several dollars per month. The trick to finding an affordable price is to call several companies, or get several car insurance quotes on the internet. Plan to find at least 10 quotes from 10 providers. It is important to resist any pressure by a salesperson. Gather all the facts and then make the right decision.
2) Go with a Higher Deductible
The higher the deductible is, the lower the premium will be. Sometimes, it can make a significant difference. For example, a provider might charge $125 per month for a policy with a $100 deductible. That same company might charge less than $100 per month for a $250 deductible. When the funds are available to cover that gap in the case of an accident, it is wiser to go with the latter, or even one that is higher.
3) Ask About Discounts
Most auto insurance companies offer discounts and they may not tell consumers about them upfront. Discounts are available for a variety of situations including:
- Senior citizens
- Having a good driving record
- Non-drinkers and non-smokers
- Completing driver training classes
- Insuring multiple cars with the same company
- Low mileage driving
- Not using the vehicle for work
- Installing a security alarm system in the automobile
- Paying the full amount due rather than making monthly payments
4) Carry All Insurance with the Same Company
Most companies provide discounts for customers who carry multiple policies with them. These include disability, health, home and life insurance. When shopping for cheap car insurance quotes, buyers should start with companies that carry the various kinds of coverage they need. If they discover it is still less expensive to go with a company that only provides auto insurance, that option is the course to take.
5) Only Carry Liability on Older Vehicles
The older a vehicle becomes, the less desirable it is to repair it in the case of an accident. The repairs may cost more than the value of the vehicle. In this situation, it is not worth carrying coverage for repairs. It is less expensive to carry liability only. The exception to this is if a finance company is still carrying the note. It, or the government, may require full coverage on the vehicle.
Another money saving tip is to be smart about comprehensive coverage. After learning exactly what it covers, a consumer may determine that it is not worth the increase in the premium. Companies also vary as to what they cover in comprehensive coverage. It typically includes theft, windshield replacement and repairs from storm damage, but it may include the theft of a car stereo system. A buyer who can afford these repairs may save money by opting out of that coverage.
The providers of the Tesco credit card advise that consumers also make themselves aware of the verbiage and jargon used in car insurance policies. These include things like TPFT (Third-party fire and theft), fronting (falsely claiming to be the main driver of the vehicle) and IPT (insurance premium tax). Knowledge is power when it comes to saving money on car insurance.
For more information other forms of cheap insurance please read more of our articles.