If you are smart with your money, you will always be looking for ways to save some money. Unfortunately, many people are throwing extra money away when it comes to their car insurance because they do not know how to go about getting the lowest rates. With these 5 easy steps, however, you will be able to get the lowest price possible while still getting the coverage you need.
Compare Companies
You may be surprised by the difference in rates offered by different car insurance companies. A little comparison shopping can go a long way when it comes to saving money on your insurance. When comparing prices, however, make certain the policies are similar and that you are getting the same type of coverage from each company. This way, you can be certain you are accurately comparing what they have to offer. In addition, remember to keep more than just the cost in mind when comparing companies. Sometimes, a company with more stability or with better customer service is worth paying a little more to have.
Think Before You Buy a Car
Certain cars will inherently come with higher insurance rates, so put some thought into your next purchase. Sports cars or other cars that are more likely to get damaged will have a higher insurance rate than more conservative models. In addition, luxury cars or other vehicles that can be expensive to repair will typically cost more to insure than other vehicles. Similarly, older card usually cost less to insure than newer cars and cars that are frequently stolen will be more costly than those that are not. If you arent certain, contact your insurance agent or consult with the Insurance Institute for Highway Safety in order to determine how reasonable your rates will be before you purchase a new vehicle.
Make Changes to Your Deductibles
Your deductible is the amount of money you have to pay toward your claim before you receive compensation. In other words, if you have a $500 deductible and you experience $2,000 worth of damage, you will only receive $1,500 in compensation because the $500 deductible will be removed first. If you increase the amount of your deductible, your premium rates can fall dramatically. In fact, increasing your deductible to $500 from a $200 deductible can decrease your premium by up to 30%. Increasing your deductible to $1,000 can decrease your payments by 40%.
Take Advantage of Discounts
Many car insurance companies have special discounts that can be applied to your policy if you qualify. Having certain safety features or theft-deterring features on your vehicle, for example, can reduce your rates. Similarly, if you drive a low number of miles each year or if you have several vehicles on your policy, you may qualify for additional discounts. Getting your house insurance or other forms of insurance from the same company as your car insurance can also help bring down the costs.
Change Your Coverage
Every state has certain minimum coverage requirements, but carrying coverage such as collision and comprehensive is optional. Depending upon the current value of your car, carrying this extra insurance may not be worth the extra cost. So, consider the value of your car and your deductible amount in order to determine if full coverage is truly necessary.