Over 50% of car owners worry about the price before checking out car insurance. A staggeringly high number of car owners searching for budget-friendly car insurance don’t understand the ins-and-outs of it. We often settle for the first policy we look at since comparing and researching auto insurance policies is not only time-consuming but also quite confusing.
If you are shopping for automobile insurance, here are the seven things you can do to get the best possible rate –
- Check out the regional players
Did you know? In the US, only four companies dictate auto insurance businesses. Their services might be expensive and not as comprehensive in your region. Don’t forget to look at the regional insurers, who might be willing to offer you better deals. They might have low rates that suit your budget. Most local car insurance companies have a higher customer satisfaction rate as compared to the leading four.
- Look at multiple companies
Never make your decision by looking at one company’s rates. Insurers might advertise the “lowest rates” on their TV and print endorsements, but the individual policy rates vary considerably depending upon a car’s make, model, condition and more. Compare the prices of three or more companies providing auto insurance near you to find the best price. Over 38% of US adults with car insurance don’t compare their insurance costs before purchasing.
- Ask for discounts
Most insurers have discounts and offers for the buyers, but there are other discounts you can always access by asking –
- Combine the auto insurance with home insurance policies
- Pay one-year’s premium at one go for lucrative rebates
- Get your documents online
- Insure more than one car with one policy
- Install anti-theft systems in your car
- Show a clean driving record without any traffic violation
- Work on your credit record
Unless you are a resident of Massachusetts, California, and Hawaii, your gleaming credit record can reduce the total cost of the auto insurance. The insurers in the other 47 states can look into the applicant’s FICO score and offer a price accordingly. Higher the score, lower the cost of auto insurance.
- Buy the right model of car
According to some of the leading auto insurance analysts, specific car models have lower insurance costs. Check out models like Honda CR-V, Jeep Cherokee, and Subaru Outback to minimize the basic auto insurance cost.
- Older cars should avoid collision and comprehensive coverage
Comprehensive coverage pays when a vehicle sustains damage from fire, vandalism, animal crashes, weather, and floods. Collision coverage pays for the repair after an accident with another car. However, the maximum policy depends directly upon the value of the insured vehicle. Therefore, an older car always receives a lower payout.
- Try pay-per-mile insurance
It is typically a lesser-known concept, but pay-per-mile insurance is a wonderful solution for cars that don’t run regularly or log a few miles. You can get a similar insurance cover that allows your insurer to track the miles on your vehicle and offer a discounted price based on your driving.
Buying a new car comes with additional costs. Most people think twice before purchasing full coverage auto insurance and they definitely should, since there are multiple cost-effective alternatives around.
