Are you concerned that you don’t have the right auto coverage for your vehicle? Here are some tips for choosing the best insurance policy.
Motorists in several states are paying an average of $2,000 a year more than they need to be for their car insurance.
Whether its because they failed to compare rates in their area or because they didn’t know better, there could be money left on the table. Finding the best insurance policy for you and your vehicle can take knowing what to look for.
If you’ve been driving for years without a mark on your record, you should be paying a fairly low rate.
For experienced drivers who have multiple drivers to insure in your household, you could be taking advantage of extra savings by bundling your policies.
Whether you’re concerned that you don’t have the right policy or if you suspect you’re paying too much, there are some tricks to finding a good policy. Follow these 10 tips to save money while still having the best insurance policy around.
- Do A Rate Check
Every year, rates are recalculated by insurance companies. Check with other insurers in your area to see what kinds of rates they charge for comparable policies.
Some states set the standards for insurance rates, which allows you to use their guide against what insurance companies are quoting to you. You might be able to find some comparison tools online. While these only offer general ideas of what to expect, they aren’t always totally accurate.
Call the insurance company you’re interested and see what kind of deal they can offer. Once you get an offer, see if they can offer you something for less. Don’t be afraid to haggle with your agent about price.
- Pick A Quality Insurer
If you have a high-risk driver or teenager on your policy, don’t just go with the lowest premium number. See what kinds of payouts they offer in the case of any accidents or claims. You could be paying the lowest rate around, but be getting nothing in return.
Going through the process of making a claim and even dealing with another driver’s insurance can be stressful. Choosing a reputable insurance company will ensure that you have the name recognition you need to keep another insurance company from taking advantage of you.
Check online ratings and reviews and see what other drivers have said about a company before you decide on one.
- Good Credit Counts
Having a good credit score can impact your premium. If you know you’ll be getting a new insurance policy, make sure to pay off anything you might owe on any old utilities. Get your credit card utilization down to around 30% or less.
If you’ve just had any hard inquiries on your credit and can afford to wait, you might want to postpone changing insurance companies. If your credit score is low, you might end up paying more per month.4. Get a Good Deductible
Your premium goes down as your deductible goes up. But this means if you get in an accident, you’ll end up paying a lot more to cover any costs.
If your driving record is strong and you’ve been accident-free for a number of years, you could take this risk. You might end up paying around 40% less on your car insurance.
Be sure to always maintain safe habits though because an accident could cost you big time.
- Are You Over-covered?
If you have more liability insurance, bodily, and property damage coverage you need, you could lower your costs by adjusting your coverage. While lowering your coverage means lowering your protection, you could save more as your coverage goes down.
As your car ages, your costs and risks might increase so be sure you’re leaving yourself enough room to be covered in case of emergencies.
- Report Lower Usage
If you’ve suddenly started working at home, you might be able to lower your insurance premium. You won’t be driving as much, so your risk will have gone down.
If you lose your job, you could also ask for a change in your premium. While it’s not the most fortunate circumstance, cutting corners where you can could be essential at a time like that.
- Corner Cutting On Repairs
Your insurer could send you to a certain shop for repairs. That shop might try to use cheap third-party replacement parts that don’t fit quite right.
Make sure they’re using original manufacturer’s replacement parts. Other parts could lead to more rust, which could lead to car malfunctions, fail safety tests, and lead to accidents.
- Car Choice Matters
Most new cars come with a relative collision insurance estimate. The fees could be astronomical no matter how many features your new car has.
Be sure to ask lots of questions about how to get the best insurance policy when you’re shopping for a new vehicle.
- Watch Out For Scammers
Other drivers might try to fake an accident in a parking lot or other low-speed, low-impact situation. Once they start this insurance claim, your premium could skyrocket.
Make sure if you’re in an accident that you take lots of photos, call the police and report the accident accurately. Get the other person’s insurance information. Remain cordial and work with the other party in good faith.
Be on the lookout for other people as well if you happen to witness an accident.
- Look For Discounts
Older, married, and experienced drivers tend to be considered a lower risk. Cars that have lots of built-in safety and anti-theft features will also chop down your premium.
If you have a home or renter’s insurance plan, ask if you can get everything bundled together. You might be able to save big time by getting the best insurance policy bundled from the same company.
The Best Insurance Policy Makes You Feel Reassured Having a great insurance policy lets you drive with your mind at ease.
Rather than being stressed out, you can focus on other things knowing that you’re paying the best price for a great policy.
While you’re ticking off all the boxes to make sure you’re prepared when the rubber meets the road, check out our guide of must-haves for an emergency roadside kit.