Buying a new car can be an exciting pursuit. Purchasing auto insurance, however, is likely not as much fun. Not to mention, the cost of auto insurance can be very high for most people.
There are many factors that affect how much you will pay for your auto insurance. Some factors include age, marital status, credit rating, where you reside, and the type of car you drive. It is hardly probable you will relocate just to pay less insurance and not possible to do anything about your age. Nonetheless, you can make shrewd decisions in other areas to lower your insurance costs.
Consider the Car
The type of car and features within a car plus the age of the driver typically correlate to your expense to insure. For example, a four-door model for a twenty year old is often less costly than a two-door. Car safety features like anti-lock brakes, air bags, theft recovery, and blind-spot detection also aid in obtaining lower insurance rates.
Negotiate Your Rate
Assess the rates of at least three insurance carriers, and share deals you’ve received with other carriers to see if they would be willing to offer the best coverage for your needs at a lower price. The more knowledgeable you are about current rates and coverage with reputable companies, the better prepared you are to ask for what you want.
Pay for What You Need
Some insurers or brokers may try to sell you add-ons. This may include roadside assistance or accidental death coverage. You may not need them at all, or you may get them cheaper elsewhere.
Your Score Matters
The better your credit score, the less expensive your insurance premiums. The insurance company usually looks at your credit score to determine their risk for insurance claims. However, it’s not just your credit score that is a factor. Inquire to your carrier about your insurance score and how you can make it great as your credit score is just one facet of your insurance score.
Keep a Clean Driving Record
If you have taken a driving course, have a good driving record, and no accidents, the insurance company considers you as a low-risk driver which results in a lower premium.
Pay Annually Instead of Monthly
There is typically an installment fee for paying monthly. You could save up to 5% or more if you pay annually. Depending on your insurance company, you will have to determine whether the annual payment is worth the savings.
Leave No Discounts on the Table
Talk to your insurance carrier about discounts you may be eligible for and try and get all of them. These discounts may be a result of packaging your insurance with a home or mortgage, getting great grades in school, or living in a rural or low-cost insurance area.
To conclude, it is important to remember that car insurance should be suited to meet your specific needs. The best thing to do is to contact an insurance agent and again shop around. The agent will be able to assist you in getting all the possible discounts and coverage that is adequate.