What if you could save money on your insurance? You can, by looking at what you need and not just price.
A car is an expensive purchase that requires a lot of maintenance to keep it running smoothly. For many drivers, the cost of fuel alone is enough to make them cringe when they think about how much they spend each month. The last thing anyone wants to do is pay more in insurance than their monthly payment for the vehicle itself! But this doesn’t have to happen; there are ways to get lower rates on auto insurance policies even when your driving record isn’t perfect. Here are tips for finding an affordable policy with great coverage without breaking the bank:
1. Use an Auto Insurance Comparison Website to Compare Quotes
One way to find a great deal on auto insurance is by using an online comparison site. These websites offer instant quotes from approved companies in your area and allow you to choose the best cheap car insurance coverage that fits your budget. If you’re on a tight budget, the company that charges for additional coverage might be your best choice.
You can always add more protection down the line when you have more cash to spend. You can even see if you qualify for discounts that could save you more money on top of lower rates. Many of these sites also give you access to reviews from other drivers so you can find a company with a good track record.
2. Try Raising Your Deductible
Your deductible is the amount you pay out-of-pocket before your insurance starts to cover damages. The higher your deductible is, the lower your monthly payments will be. So, consider raising your deductible to $1,000 and using the money you save each month to pay down debts or contribute to a savings account. That way, you will build your savings and still have insurance coverage in case of an accident. You’ll still have great coverage in case of an accident, but with a lower monthly payment. You can even use it as additional security in case you damage your vehicle and need to make repairs.
3. Keep Your Credit in Good Standing
Having good credit makes it easier to find affordable rates. If you have anything less than perfect scores, make sure your vehicle is free of blemishes like tickets or accidents before applying for coverage. If you have outstanding tickets or loans, take care of them before applying for any type of insurance.
You can also keep your credit in good standing by not opening too many credit cards and making sure you pay them off in their entirety every month. If you can’t do both of these things, keep your total credit use to less than 30% of the available limit on each card. The last thing an insurance company wants to do is pay out a claim that could have been avoided by checking someone’s driving history.
4. Look for Discounts That Apply To You
There are many discounts available for drivers that want to save even more on their auto insurance quotes. These discounts vary by company, so it’s best to speak with a representative about what you can get. Young drivers (typically under 25) looking for their first policy will often get lower rates by choosing a company that offers good student discounts. Older drivers who are retired or no longer drive as much could save money by opting for non-standard coverage.
This type of plan costs more than the standard policy, but your rates will be lower because non-standard policies typically have higher deductibles. Drivers who bundle their home and auto insurance could save money on both types of coverage. Several companies, like Geico, offer deep discounts on auto insurance when it is paired with another qualifying policy. Some of the most common discounts are for good drivers, safe vehicles, good students, or being part of an organization that has members who are driving safely.
5. Consider your Liability-Coverage Limits
The best way to get a lower rate on your auto insurance is by choosing a company that offers high liability limits for your policy. Liability insurance covers the other party’s medical costs and damages if you are at fault in an accident, so higher limits mean more security for you and your family.
Running an online comparison site to check rates is the best way to find out which company offers you the most coverage for your money. As long as you stay within certain limits, known as “policy limits”, you will be covered if there’s an accident. So, make sure your liability coverage matches or is higher than your policy limit.
In some states, having low liability limits could lead to your rates being raised. The state of California, for example, has one of the highest minimum liability limits in the country. So, if you have the money to pay for higher limits, it could be a smart investment that saves you money in the long run.
6. Consider Third-Party Ratings
Third-party ratings are a great way to get a good idea of the quality of the company you’re thinking about doing business with. They can also reveal which companies have been charged with any violations for illegal conduct, so it’s smart to check into that as well.
When checking out third-party ratings, make sure you look at the entire history of the company and not just one or two violations. You might find that an insurance company has been fined for offering misrepresented products in one state but has never had any problems in another. Pay attention to any news reports associated with your potential provider as well as complaints filed against them. Use this information as part of your decision-making process when choosing an insurer for your vehicle coverage needs.
Auto insurance coverage types are highly important when you decide which company to go with for your policy. There are several different kinds of coverages that apply to every driver, but there are also some that are considered optional or standard in certain states. You should always know what you’re getting into when buying car insurance, so do the research before agreeing to anything.
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