For every car owner, having car insurance is a must. In fact, in many countries auto insurance is compulsory. No matter how important car insurance is, but every one of us wants to avoid spending those extra amounts than what is needed.
You are planning to buy car insurance, and you have no idea about how to go about it. Don’t worry. Finding good and affordable car insurance is not difficult. There are numerous insurance companies which try their best to cater to our car insurance requirements. Different companies offer different insurance plans. These plans differ from each other in terms of features and price.
To get the best car insurance policy, you need to compare the insurance offered by various companies. This would help you find the car insurance, which provides the best coverage that too at much cheaper rates.
Here are 10 easy ways which may help you in finding an affordable car insurance policy.
Buy and compare auto insurance
The difference between the rates offered by different insurance companies can be quite high. Hence comparing the car insurance policies of major as well as local insurance companies is very important. Remember to compare policies beyond their price list. Your car insurance is going to be your financial cover in case of any disaster. So, chose wisely.
Making a comparison would help you find a cheaper insurance policy to cover all your needs. You may also uncover discounts offered by various car insurance companies. You should make the comparison at the time of buying a new policy as well as at the time of renewal.
You can take help of an independent insurance agent or can do the comparison using any of online quoting website. Online websites will help you find the cheapest car insurance with the best possible coverage that, too, from the comfort of your house.
Bundle your policies
In our lifetime, we buy various insurance policies depending on our needs and requirements. Another way to save money while purchasing car insurance is to bundle all the policies and opt for a multi-policy discount. This means you can buy your car insurance, home insurance, etc. from the same insurance provider, which may help you save your hard earned money. Similarly, you can ask quotes from various insurance providers for your bundled policy and can select the one which gives you the best offer in terms of price, features, and discounts.
Verify all discount and which ones you are receiving
The insurance industry is highly competitive. To attract more and more clients, different companies offer different discounts. While considering any insurance policy, ask the insurance providers about various discounts offered by them. Check your eligibility for these discounts and check if you are being given those discounts are not.
Some of the most common discounts offered by car insurance providers are
- Homeowner discount
- Good student discount
- Paid-in-full discount
- Clean driving record
- Safety feature discount
- Paying annual premium in one go
- Receiving document online
Etc. Check your eligibility for all the discounts offered by the company and get them added. This may get you a good discount on your final premium amount and help you same a good amount of money.
Pay in full
Another way to get cheaper insurance is to make the full premium payment in one go. Many insurance companies offer a special discount to clients who make the annual premium payment. If your budget allows just opt for full payment option over the installments and enjoy a reduction in a premium price.
Improve your credit score
Your credit score plays an important role as far as the quoting of car insurance premium amount is concerned. This rule applies in most of the states. Insurance companies consider the credit score as an assurance of your odds of filing claims. Believe it or not, a poor credit score can increase your annual car insurance premium by hundreds of dollars.
You can improve your credit score by paying your credit card bills, loan installments, an insurance premium, and other bills on time. A good credit score would help you in getting car insurance at lower premium rates. Keep a regular check on your credit score and if required, go for a credit repair.
Improve your driving record and get the best rates
Car insurance companies check the driving history of their potential clients before finalizing the offer. If you have a bad driving history i.e. if you have accidents, parking tickets, or drunk driving cases registered in your name than your chances of getting the cheapest car insurance are almost gone.
Keep your driving record clean. Always go for safe driving. A good driving record can fetch you discount up to 25%, which is actually a lot of savings we are talking about. So, drive safely and keep your eyes on the road while driving.
Several car insurance companies tie up with various organizations, employers, schools, alumni groups, etc. and offer heavy discounts for group insurance. We all know that employers take health insurance plans for their employees. Similarly, many employers (especially large organizations) opt for group car insurance plans. Before buying a car insurance policy, check with your organization if they provide such benefit. If yes, contact the concerned company and enjoy the organization membership.
Before buying car insurance, inquire about the various membership discounts offered by the insurance company. You never know, you might be eligible for some heavy discount on the premium amount.
Boost your deductible
While buying a car insurance policy with comprehensive and collision coverage, raise the deductible amount. Deductible refers to the amount that the insurer has to pay before the insurance takes over. This is eligible in case of thefts, accidents, or any other kind of vehicle-related mishappening. Higher the amount of deductible lower will be the premium amount and vice a versa. Just make sure to keep the deductible amount in your bank account for any kind of contingency situation.
This is not applicable in case of liability insurance as it covers the damages caused to people involved in the accident.
Buy the right car
While buying a car, we all look for its price, features, safety features, maintenance cost, and fuel efficiency. One thing which most of us overlook is the insurance premium associated with it. Many people believe that the premium amount is proportional to the car price. Well, it’s not true. Find out the insurance premium rates of the vehicle you are selecting and then make the decision.
Get the right coverage and avoid fees
The main aim of purchasing insurance is to get the right coverage. The decision regarding the coverage lies with you. Select the insurance coverage as per your vehicle’s usage. You have to think smartly and take a decision regarding what all coverage you want to take and what you can avoid.
Another way of getting affordable car insurance is by avoiding extra fees and charges. Many insurance take charges for the paperwork associated with your bill. Hence by opting auto debit or by paying the annual premium in one time can save you from paying these extra charges. Another fee that you can easily avoid is late fee charge. So, pay your installments on time.
Insurance companies keep on changing their prices and features for car insurance policies. So, check and compare current rates and discounts before finalizing your decision. Hence by doing a little homework, you can get affordable car insurance.