Steps to getting cheap car insurance quotes.
Almost everybody wants cheap car insurance quotes whether it is comprehensive car insurance or other types of auto insurance. The truth is that, getting cheap car insurance is not something that is out of the world. If you know what to do, you will discover that your desire is not far reached. However, you need to understand that the word “Cheap Car Insurance” is relative. There are many factors that determine the car insurance quotes that you will get from different auto insurance companies. Besides, your specific options or choice will go a long way in determining whether you will enjoy cheap car insurance quotes or not. I don’t want you to be carried away by different ‘cheap car insurance’ advertisements that you see all over the internet. If you don’t know exactly what you need to do on your part so that you can actually get real cheap car insurance quotes, your search may be an exercise in futility.
You may want to try what I am telling you. For instance, if you search for “cheap car insurance near me”, you will be greeted with different offers from various auto insurance companies. Of course, this could be a right step in the right direction. However, if you look at some of the offers, you will ask yourself if the offers actually represent what could be termed cheap car insurance indeed because they may not actually cover what you want for your auto insurance. The fact that an insurance company advertises “cheap car insurance quotes” to you does not mean that you will be getting the best deal. So, if getting cheap auto insurance is your objective or you are looking for a way of cutting down the amount you are spending on car insurance premium, this article will throw light on how to go about it. You can consider taking the following steps:
Shop around: This has been my guiding principle anytime I want to buy something in any perfect market where prices are usually competitive. Somebody might try to convince me that he has offered me the best price I can ever get. Of course, he might be telling the truth. However, I will only believe the truth until I have gone round and discovered that I cannot find the same item cheaper elsewhere. What I usually tell them is that, “I will come back to you if the price is the same elsewhere”. I can later return to make the purchase if his claim about the price he offered me is true. You can apply the same principle to get cheap car insurance quotes as insurance market is very competitive. You can start this process by searching for “cheap car insurance near me”. You can even be more specific by searching for car insurance companies within your geographical location. Your search will be more relevant if you search for something like “cheap auto insurance in Texas”, “cheap car insurance in California”, “cheap car insurance in New York”, “cheap car insurance in Florida” or “cheap car insurance in Illinois etc. If you are outside USA, your own search may be “cheap car insurance in UK”. These are just examples. If your location is different from where I mentioned, you just need to specify your location. The reason is that, each state has its own minimum insurance coverage requirements. For instance, the minimum insurance coverage requirements in Pennsylvania is different from the minimum insurance coverage requirements in Ohio. Nevertheless, regardless of where the auto insurance company is located, your ZIP Code will help you get car insurance quotes that are relevant to your location. However, if your auto insurance company is not near where you live, you may discover you spend more at the end of the day. The amount of money you spend transporting yourself to the office of the insurance company(for whatever reason) may outweigh the savings you might have made on the cheap car insurance premium that you paid.
Read Also: Advantages of Buying Car Insurance Online
Comparing car insurance quotes is one of the best ways you can really get cheap car insurance. There are various sites that offer free car insurance quotes comparison online. You can take advantage of this. However, to get the best auto insurance quotes, you might need to take a step further beyond comparing car insurance quotes on comparison websites. There are some auto insurance companies that you may not find on auto insurance quotes comparison sites. Visiting the websites of such auto insurance companies to get quotes directly may help you get better offers. Please note that if you want to compare car insurance quotes from different companies, the insurers usually make certain assumptions. You may need to find out the assumptions made by these insurers so as to ensure that you are comparing likes with likes. Before you set out on car insurance quotes comparison, you need to first of all decide on the car insurance coverage you need. At least, this will make you know what to look out for in any car insurance quotes you receive. Before any auto insurance company will send you a quote, you need to provide answers to certain questions. For instance, you will provide the details of the car you want to insure. Such details will include the make, model and body type of the car. You will also disclose the age and value of the car. Perhaps you have made some modifications to the car, you have to disclose this too. Auto insurance companies will require that you provide adequate information about you and all other named drivers. You may also be required to provide estimated mileage you cover every year. Ensure that you give the same answers to all questionnaire you might receive from other auto insurance companies. That is the only way you can be sure that all the car insurance quotes are based on the same insurance coverage. In most cases, cheapest car insurance quotes may not provide you enough cover. You need to be sure that the policy provides adequate cover that you need. Depending on how and where you got your auto insurance quotes. Some auto insurance quotes may be promotional offers which might have expired. Therefore, you can call to confirm if the offers are still on. If the promotion is still on, there is nothing bad in taking advantage of it. But you should find out the premium you will be asked to pay in the subsequent years. Some promotions can be baits in disguise especially if you sign up for auto renewal. Also, you may need to look beyond cheap car insurance quotes. When it comes to auto insurance shopping, some other factors such as the company’s financial rating and customers’ compliant status may be critical. You will like to find out information about the license status of the auto insurance company too. You should not be carried away with cheap car insurance quotes, it is important to buy your car insurance policy from a licensed insurer.
I will not close this segment without mentioning that it is not enough to shop around. You need to start the process early enough. Fire brigade approach will not help in this matter. A minimum period of one month to the expiry date of your existing policy will give you ample opportunity to source for many car insurance quotes as possible. Good enough, you can get many car insurance quotes online without leaving the comfort of your home. You will also have enough time to evaluate your available options. Waiting till the last moment before shopping for cheap car insurance quotes may even signal a risk to insurers. Such action may be interpreted as lack of good planning. There is tendency for people who can’t plan ahead to drive carelessly. So, before you can really enjoy cheap auto insurance, you need to give yourself enough time so that you will not be under pressure to accept any quotes that come your way.
Do your insurance with one company: There are other types of insurance which you will need apart from auto insurance. Among the popular insurance are medical insurance, travel insurance, home insurance, life insurance and pet insurance. While you may not need all these types of insurance, there is every possibility that you will need more than just car or auto insurance. Therefore, before you sign up for any auto insurance, try to find out if the insurance company offers other types of insurance policy which you might need. Even if the insurance company does not offer you cheap car insurance, you might enjoy cheap rates on other types of insurance. For instance, if you bundle your auto insurance with home insurance, your insurer can offer you discount as high as between ten and fifteen percent. Also, you will agree with me that buying from one place may be cost saving in term of the amount of money you would have spent junketing round the city in search of other insurance companies. Apart from the monetary aspect of it, having all your insurance with one company will save you time and will be less stressful. Time is money. You can use the time for other important thing which can probably fetch you income. Buying all your insurance needs from one company does not mean you should not compare car insurance quotes from different insurance companies. You can visit car insurance comparison websites for this. Before you decide on which insurer will provide you the best car insurance, you should consider the possible discount you can enjoy by bundling your other insurance needs with your auto insurance. That is the best way to strike a good deal.
Read Also: Temporary Car Insurance and its Benefits
Don’t duplicate insurance covers: Do you know that there are different types of auto insurance? You need to understand the three types of car insurance cover. Also, you should find out which of the three types of car insurance cover the company is selling to you. There is no need buying what you don’t need. For this reason, let me quickly take you through these three types of car insurance cover.
- Third party Insurance: This type of auto insurance is the lowest level of cover. I can call this affordable insurance. It is a best car insurance for people looking for cheap insurance. It covers other people such as your passengers involved in an accident and any damage your car causes other people’s car or property. The disadvantage of this car insurance is that you will be responsible for repairs or replacement of your car if damaged or stolen.
- Third party, fire and theft insurance: This is an improvement on the third party auto insurance discussed above. In this case, the insurance company will pay for repairs or replacement if your car is stolen or get burnt by fire.
- Comprehensive car insurance: As the name implies, this auto insurance covers everything above and also covers any damage to your own car in case of accident. This means that the insurance company will not only repair the other party’s car; your car will also be repaired. For people that want car insurance policy that covers everything such as accidents, fire, theft, storm, vandalism, flood or earthquakes; comprehensive auto insurance will be the best car insurance. Of course, this is not a cheap insurance policy. It will cost you more.
So, if you have theft or fire insurance that already cover your assets including your car, it will amount to duplication of insurance if you buy another third party, fire and theft car insurance. Don’t just go for general car insurance. Removing theft and fire covers from your auto insurance will help you get very cheap car insurance quotes. Also, it is cost saving not to pay for comprehensive insurance. But if you drive a very expensive car that you know you may not have financial capacity to repair or replace in case of an accident, it is better you buy comprehensive insurance. As you desire a cheap car insurance, you should also look beyond your nose. Getting cheap auto insurance by all means without minding the possible risks attached is not a good financial decision. I need to re-emphasise it that getting cheap car insurance is not the same with buying the cheapest car insurance policy. Somebody who buys comprehensive car insurance which people consider very expensive can actually be buying a cheap car insurance policy when you compare the premium he pays with the insurance coverage he enjoys.
Enhance your driving skill: What has driving skill got to do with you getting cheap car insurance quotes? Of course, insurance is all about protecting you against risks. When you sign up for car insurance, you simply transfer the risks involving your car to your car insurance company. Your level of driving skill determines the likelihood whether you will be involved in an accident or not. Even, if you have bad driving records, enrolling in driving training course can help in this area. The fact that your risk of having an accident is now reduced, you will be able to enjoy cheaper car insurance rates. Apart from your driving skill, it is important to know that auto insurance companies will also consider your driving habits. If you don’t drive at all times or you drive in low risk areas where there are few other vehicles on the road, this may help you reduce your car insurance premium. If you are very confident about your driving skill, there is an telematics device you can install on your car to track your acceleration, cornering, braking or whatever you do behind the wheel. This telematics device will also reports the times you drive whether during the rush hours or late in the night. You can get FICO Safe Driving Score which will be complimentary to your credit score. Of course, if you have good FICO safe driving score, this can significantly lower your car insurance premium. This may be useful for young drivers. Traditionally, car insurers have that general assumption that young drivers are more susceptible to having accident. Hence, there is tendency for young drivers to pay higher insurance premium than their older counterpart. This assumption may seem unfair to a young skilled driver. With the use of installed application in your car which can monitor your driving skills and habits, good statistics can help you get a cheap car insurance deal. If you have this application on your car, it is advisable that you drive in good roads. You should not exceed the speed limits. Don’t apply your break forcefully and ensure you manoeuvre corners carefully. These are very important as the apps will automatically report the statistics to your car insurer.
Besides cost savings, there are other benefits which this kind of apps offers. Your car can be easily tracked if stolen. In case of accident, an alert will be sent to the service provider. It is either they contact you immediately or they can help you call for emergency services.
Ask for discounts: Have you heard the saying; “ask, and it shall be given you”? Some people will not receive simply because they refuse to ask. Insurance companies may not offer you discounts on your car insurance if you don’t make a demand for it. They are actually looking for way of maximising their profits. So, if you want cheap car insurance, you may need to ask for discount if the car insurance quotes offered you are above what you expected. Let me give you a clue of some of the discounts you can enjoy from your car insurer. If you don’t know they exist, you will not know that you can actually request for them. The discounts may be specific to you as the driver, or your car or the type of the policy you buy. Let’s look at some of these discounts.
- Vehicle features discount: If you have certain features which can enhance the safety of your car installed on your car, you can actually enjoy some good discounts: These include air bags, automatic seat belts, anti lock brakes and anti theft devices.
- Military discount: If you are a military personnel, whether serving or retired, you can enjoy cheap car insurance by way of discounts which ordinary people may not qualified for.
- Good student discount: Good students in this context are college and university students with minimum of B Grade or as might be required by the car insurance company. You may need to provide your transcript as an evidence.
- Defensive driver discount: Have you embarked on defensive driver discount? You should let your car insurer know about it. The benefit is not limited to making you a better driver. You can actually enjoy cheaper car insurance premium if you ask for defensive driver discount.
- Alternative fuel discount: If you use hybrid car that is eco-friendly, this can earn you cheap car insurance quotes.
- Senior driver discount: Perhaps you are no longer a student to qualify for good student discount, it is good to know that insurance companies also give discount to senior drivers. If you have attained the age of fifty, you can enjoy discount on Personal Injury Protection insurance.
- Club membership discount: Do you belong to any recognised professional club? Some clubs have relationships with insurance companies which make their members to enjoy discounts if they buy insurance policy from them. Find out from your club if such arrangement is in place.
- Accident free discount: For a driver who has been driving continuously over the years without any record of accident, this is a thing to be proud about. It cannot just be by coincidence. It is a demonstration of good driving skills and driving habits. If you let your car insurer be aware of this, you can enjoy accident free bonus.
- Multi car insurance discount: “Can I have more than one car insurance policy in my name?” You may ask. The answer is yes, You can be insured on two cars at the same time. If you have more than one car, you may be able to save few bucks if you insure all the cars with one insurance company. Multi car insurance discount can be regarded as bulk or quantity discount. A lot of auto insurance companies actually use this to attract customers. You can specifically search for those auto insurance companies that offer multi car insurance discount. Many of the them advertise it but the two cars may need to be registered at the same address before the second car can qualify for multi car insurance discount. Please, you should note that while some car insurance companies may allow you to use your no claims bonus on two cars, others may not allow it. Nevertheless, even though your no claims bonus applies to one car, they may allow you to transfer it to an alternative car. You should bear in mind that each auto insurance company has its own policy.
There are other car insurance discounts. However, you may not find all these discounts in one auto insurance company. Also, the law regulating auto insurance may vary from state to state. Therefore, you may need to make enquiry about different types of car insurance discounts that are available from auto insurance companies around you. If you are able to take advantage of all the discounts you qualify for, you should be able to get affordable insurance.
Engage specialists: If this is the first time you want to buy car insurance, it might make sense to engage a specialist. If you make your insurance company your adviser, you can imagine the type of advice to expect. Any advice an insurance company will offer you may tend to be to its own advantage. Engaging a specialist may not necessary mean that you need to pay through your nose before you can get required assistance. Doing so will nullify your objective of getting cheap car insurance. If you buy your car insurance policy through a broker, he may be willing to offer you free advise. In fact, insurance brokers are very skilled in their respective fields. The main advantage of working with insurance broker is that they are independent. They work with many insurance companies. Therefore, they can help you get different quotes from different car insurance companies without beating about the bush. What you need to do is to be open to them and let them know your car insurance needs. Apart from getting cheap car insurance quotes for you, they can give you quality advise that can open your eyes to certain issues you never thought are very important. They can also help you in the process of filing your car insurance claims. Let me direct your attention to this. If you will like to buy your car insurance through a specialist, it is preferable to go through a insurance broker and not an agent. The reason is that agents are more restrictive. They work for specific one or two insurance companies. This means that they will only be able to get quotes from the companies they work with. As you will agree with me, the companies they work with may not give you the cheap car insurance quotes you desire. You will have limited options to choose from. However, you should endeavour to ask your car insurance broker how he is being paid. He owes you the duty to fully disclose his commission rates and their effect on you car insurance premium. If he receives commission from the insurance companies he works with, the commission is already part of the premium you pay. Insurance companies will not charge you arbitrarily simply because you buy your auto insurance through a broker. On the other hand, if the insurance broker is fee-based, that means you will be responsible for his fee. If your objective is to get cheap car insurance, it is better you buy your auto insurance through a broker that is commission-based.
In case you don’t want to work with specialists, you can actually seek free help for your experienced friends and colleagues. Talk to two or more people before you arrive at a conclusion. When any car insurance company is giving you any advice, you will be able to corroborate it with whatever information you must have gathered from your experienced friends or colleagues. Besides, internet is filled with free resources. You can get valuable information on how to get car insurance quotes that is best for you. Also, if you need to engage someone to drive your car, make sure that the person is a specialist.
Increase your deductibles: If you are skilled in driving and you don’t have history of car accident, you can have a cheaper car insurance quotes by increasing your deductibles. Deductible is the amount of money you will need to pay towards the repair of your car case anything happens to it. The higher your deductibles; the higher is your chance of getting cheap car insurance quotes. However, you need to think twice before you do this. While this practice can allow you get cheap car insurance quotes, the danger is that you may have to pay through your nose in case you need to carry out major repairs on the car. Remember that your insurer will not pay any claims until you have fulfilled your own part by paying up the deductible. Let me give you a simple example of how deductible applies to your car insurance. Let’s assume you get involved in an accident which cause serious damage to your car and the cost of repair is is $2,750. If your deductible is $750, it means that you need to pay this amount before your insurer pay the balance of $2,000. Your auto insurance company will not pay anything until you have fully paid the $750. You can just imagine the financial stress and inconvenience this can cause. Therefore, this is a decision that needs to be evaluated carefully before you pull the trigger. This type of a thing can lead to a situation which can be described as “penny wise, pound foolish”. You need to consider the level of your income, other financial commitment and your available credit before you decide on what your deductible will be. Therefore, it is important that you don’t make a decision that can jeopardise you and your family financially. Nevertheless, if nothing happens to your car at the end of the insurance term, your deductibles will turn out to be a major saving. You can use the money for other important thing.
On this issue of deductible, I need to direct your attention to a very important aspect. Some car insurance companies will send you cheap car insurance quotes. Any time you receive one, look properly if the auto insurance company has already factored deductible into its premium. If the deductible is set too high, there won’t be any room for you to increase the deductible.
Drive less: Have you ever wondered why some car insurance companies will ask about the average miles you drive per annum? The reason is that, the more the number of miles you drive, the greater the risks you are posing to the insurer. Please, don’t be tempted to tell lie about the average mile you drive to your insurer. This may back fire if they later find out that you lied. You can even stand the risk of losing your car insurance policy if they get to know about this. There are some car insurance quotes which are based on “pay per usage/mile rates”. If your car insurance company adopts this method in calculating their car insurance premium, it will pay to drive less. Instead of taking your car to work every day, you can actually take a cab. However, the savings you will make on your insurance premium by driving less will depend on the state in which you live. Also, some car insurance companies offer low mileage discount. You may need to ask your insurance company if you qualify for it. Mileage discount is another good way by which you can get cheap car insurance from any insurance company. In the same vein, your auto insurance premium rate may increase if your annual mileage driven increases.
Take note of the vehicle book value of your car: Don’t allow any insurance company rob you. The fact that you paid certain amount for your car insurance the previous year does not mean that you will continue to pay the same amount year by year. For every passing year, your car is reducing in value. This is called depreciation. This can be due to wear and tear or obsolescence. Therefore, the amount you may need to spend in putting your old car into its original position in case of accident may not be that expensive again. There are some spare parts which you can buy second hand instead of buying anew. All these should add up to cheap car insurance. Therefore you should expect cheaper auto insurance quotes for highly depreciated car.
Install a tracker and other car devices: There are devices which can make your car safer. Such devices may include car alarms, airbags, seat belts and anti-theft device. You can also install a car tracker. This will not only help you monitor your car, it will allow the insurance company to track how safe your driving is. Of course, this has its pros and cons. If you drive well, it can help you secure cheap auto insurance quotes. On the other hand, if you drive carelessly, your car insurance premium may go up.
Other ways of getting cheap car insurance quotes include the following:
Don’t buy car that is too expensive to insure or repair: Car insurance premium may be a function of the value of your car but this is not always the case. There is a myth about car insurance that the more expensive your car is, the higher the car insurance premium you will have to pay. The truth is that, there are some cars that though are cheap, the insurance premium on them may be higher than other more expensive cars. Insurers don’t necessarily lay too much emphasis on whether a car is expensive or not. They are more concerned with the claims history of a particular type of vehicle, car’s accident frequency, vandalism and theft frequency, repair costs and safety ratings of the cars. These are the things you need to investigate before making decision on a type of car to buy. Car models with very high theft or vandalism history or a vehicle with very expensive spare parts will usually attract high insurance premium. For instance, sporty cars usually attract a high premium. However, the fact that a car is having two doors does not means that it will attract higher insurance premium than a four door car. If a claim history of a four door car is higher than that of a two door car, then, the insurance premium of the two door car is going to be cheaper. So, if you are seeking for cheap car insurance quotes, you need to start the planning what the insurance premium on your desired car may be before you finally buy the car. Finding out the likely insurance premium on the type of car you plan to buy before hand may save you some buck. Please note that I didn’t say that if you buy an expensive car, that you are going to pay high insurance premium. The cost of the car may have impact on the insurance. But most importantly, insurers will like to consider the make and model of a car, its body style (not colour) and engine size to determine insurance premium. Shopping around for cheap car insurance after you have already bought a car that attracts a high insurance premium is like medicine after death. So, it is better to look before you leap.
Improve your credit. It is good for you to know that in some states, car insurance companies will check your credit to determine your car insurance premium. So, there is a relationship between your credit score and the car insurance quotes you will get. If your credit score is bad, the car insurance quotes you will get may be higher than somebody with a good credit score. Therefore, it you want to enjoy cheap car insurance, you may need to first work on your credit score. You can improve your credit score by ensuring you make all your loans and credit cards payments on time. Any default will further hurt your credit. Also, you should ensure that you don’t exceed your credit limits. Avoid having too many credit cards at a time. You should only open new credit account when it is extremely necessary to do so. However, if your credit is bad, it may take some times before it can be fully repaired. Therefore, whatever efforts you make towards repairing your credit may not translate to cheap car insurance immediately. But it is better to start from somewhere. It may not be too long that you will reap the benefits if you are consistent about it.
Pay your premium yearly: This practice may be contrary to some people opinion on how to manage cash flow. But if your desire is to enjoy cheap car insurance, then it is better to pay upfront than pay on a monthly basis. If you have the money, yearly payment will save you some bucks. But if you are cash constrained, you can choose to pay your car insurance premium monthly. This is an exercise you can do by yourself. Find out the monthly car insurance premium and multiply the figure by twelve. Then compare the total amount with the yearly premium. You will discover that it is more expensive paying monthly. This type of payment plan is not limited to car insurance premium. It applies to almost everything. You can check out any other payment plan such as web hosting, utilities and accounting software etc. However, if you think there is something you can invest your money in which can yield you returns that is higher than the savings you make on the purchase of the car insurance on a yearly plan, it will be advisable you invest the money. This is a simple cost benefit analysis. On the other hand, if you need to borrow in an attempt to getting cheap car insurance, ensure that you have a good payment plan in place. Default in loan payments may hurt your credit. This may turn to increase your next car insurance premium. Furthermore, the interest you are going to pay on the loan should not be more than the discounts you enjoy by paying the auto insurance premium upfront.
Stop auto renewal: There is no doubt that auto renewal is convenient. It also ensures that you don’t stand the risk of driving a car that is not properly insured. However, auto renewal of your car insurance premium can work to your disadvantage. You may not know when your insurance company increases their auto insurance premium. This can happen if you bought your first car insurance policy on promotional offer. After the end of the first year, depending on the term of the promotion, the subsequent premium may be quite high. This means that you will be paying more unknowingly. Also, even when you have a better credit score or improve on your driving skill, you may not know that you can actually enjoy some discounts which can result in a cheaper car insurance premium. So, if you plan getting cheap car insurance, you may need to stop that auto renewal. If the premium expires, the insurance company will notify you as they will not like to lose income. One thing about auto renewal is that, you may not bother to even shop around for cheaper car insurance quotes. If you want to enjoy good insurance cover at the best price, you can cultivate a practice of shopping around for minimum of three or five insurance quotes every year.
Don’t add young drivers to your policy: Young drivers are carefree. This carefree attitude can lead to accident. No matter how disciplined a young driver is, you can’t take that youth exuberance from him. That is why auto insurance companies usually rank risk level of any your driver higher than that of a more mature person. Generally, auto insurance for high risk drivers tends to be high. Also, young drivers may not have enough driving records or history for easy assessment. Therefore, if you really want to get cheap car insurance quotes, you may desist from adding young drivers to your policy. Instead, I will advise that you add expert drivers to your policy. Nevertheless, you don’t need to add people that you know may not likely drive the car. It is also illegal to have a more experienced driver front for you as the main driver of the car. This act can even invalidate your cover and this can make you to be convicted for driving without insurance if caught.
Move away from crime prone location: There are some areas that are generally prone to crimes. If you live in such place, it may be difficult for you to get cheap auto insurance quotes. If an auto insurance company realises that there is tendency that your car may be stolen, definitely you should expect higher auto insurance quotes. If you are so desperate about having cheap auto insurance, you may consider moving to a safer location. Also, where you park your car can determine whether it is susceptible to being stolen. If you park your car by the road side, the chance of the car being stolen is higher than that of a car parked in a garage in a fenced building. So, you should not be careless about how and where you park your car. It is important that you are truthful about the information you supply to your insurance. Now that you know that you can enjoy cheaper car insurance quotes if you park your car in the garage, you should not because of that lie to your insurer when in reality you park your car outside. If your insurer finds out that you lied, this may result to higher insurance premium. The auto insurance company may even decide to cancel your car insurance policy.
Another important thing I want you to note about insurance is that, moving to another location may impact your insurance premium. It does not mean that you will enjoy a cheaper car insurance premium than somebody staying in a place where you move away from. Also, it does not mean that you will get the same car insurance quotes with your neighbour. Where you live is just one out of many other factors that affect car insurance rates. The type of car your drive, your driving experience and insurance history may be quite different from your neighbours’.
Read Also: Why your Car Insurance Rate May Increase
Don’t change insurance company too often: You may say that I am contradicting myself when I say that you should shop around every year for three or five auto insurance quotes from different insurers every year. Well, you need to understand that shopping around does not mean that you must change your car insurance company. Shopping around for car insurance quotes will provide you a basis for comparison so as to ensure that you are getting your cover at the best price. If any of the car insurance quotes you receive seems to be more favourable, you can bring this to the attention of your current insurer. This may force it to lower your insurance premium. It is nice to stay loyal to an auto insurance company. Before you decide on buying a car insurance from any auto insurance company, find out enough useful information about the company. If you do, you will not have to start changing to another auto insurance company after a year. Companies, at times, reward their loyal customers either by way of offering discounts or gifts. Therefore, staying loyal to your car insurer can allow you enjoy cheap car insurance. Another problem with changing of insurer is that it can create gap in your car insurance. Such gap can lead to higher car insurance quotes. Besides, if there is an accident within the gap period, you will be held personally liable. Even if no accident occurs, you may be forced to pay huge fine if you are caught driving without any insurance cover.
I need to mention that staying loyal to an auto insurance company is not a guaranty for cheap car insurance. In fact, it can work against you because your insurer may take undue advantage of this and increase your car insurance premium. Your car insurer can actually monitor your spending habits through a special software to find out how often you change your utility providers. If they discover that you hardly change your utility providers, they may as well conclude that you might not bother to search for another auto insurance company. So, you may be risking paying higher car insurance premium without you knowing. For you to actually ensure that you are enjoying cheap auto insurance, you might need to shop around once in a while to compare car insurance quotes from other insurers. Without the comparison, the impression that your car insurance premium is cheap may be totally wrong. Some insurers may even make you to feel appreciated by offering you false discount after they must have increased their premium.
Liaise with your company: If you are privileged to work in an organisation that has side deals with car insurance companies, you can take advantage of this. There is no doubt that you will be able to enjoy cheaper car insurance if your company can negotiate with an auto insurance company on behalf of its employees. You can just imagine if ten, twenty, thirty or forty employees in the organisation where you work buy their car insurance from the same auto insurance company. Definitely, the employees will enjoy discount which they wouldn’t have enjoyed if they approach the insurer individually. So, do yourself good by making enquiry if such arrangement exists in your organisation. If it does not exist, you can even bring it as a suggestion. You may be surprised that the organisation and other employees may gladly buy into it.
Buy the minimum car insurance coverage: Minimum coverage is the lowest amount of liability insurance coverage allowed under the law in each respective state or as may be allowed by an auto insurance company. In auto insurance, you are not mandated to buy full coverage. However, there are certain car insurance coverage that you are expected to have at least. Minimum car insurance coverage varies from state to state. If your objective is to get cheap car insurance, you can just buy the minimums. Generally, minimum car insurance coverage will include bodily injury liability, property damage liability, personal injury protection and uninsured/under-insured motorists protection. However, you need to realise that minimum car insurance coverage may not be enough for you. Therefore you need to find out from your insurer what the minimum car insurance covers so that you won’t expose yourself to risks unnecessarily without knowing in the name of cheap car insurance. If you feel that the minimum car insurance coverage is not enough, your insurer will be ready to provide additional cover at your request. But this will definitely increase your auto insurance premium.
Other factors: Insurers also consider other factors to determine your car insurance premium. For instance, a married person may enjoy cheaper insurance premium than someone that is single, divorced, widowed or separated. You may not like this if you are still single. While should married people enjoy cheaper auto insurance quotes? The truth is that, married people are considered to be more responsible in the way they conduct themselves including when driving. Also, divorced, widowed or separated person may have burdens in their heart which may affect their level of concentration during driving. This is just my own analysis why I think insurers may prefer giving cheaper car insurance quotes to the married people. The question you may then ask yourself is if you need to get married simply because you want to enjoy cheap car insurance. I don’t consider it a good decision if the only reason one may like to marry is for him to be able to get cheaper car insurance.
Other surprising factor that may make you enjoy cheaper car insurance is your level of education. Professionals such as, architects, accountants, doctors and lawyers may also enjoy cheap auto insurance quotes. If you just change from a being a renter to being a homeowner, their is likelihood you may get cheaper auto insurance quotes the next time you shop around from different car insurance companies.
From all the points mentioned above, you will realise that finding really cheap auto insurance depends on many factors. Even though auto insurance companies do advertise cheap car insurance quotes, apart from some factors which you might not have control upon, what you do will determine whether you will actually qualify for it or not. I will like to conclude by saying that instead of buying cheap car insurance, it is more beneficial to buy the auto insurance that is right for you at the best price. Cheapest car insurance is not usually the best deal. If you don’t know the auto insurance that is right for you, you can talk with an expert for advice. The truth is that, you need a car insurance that will provide you adequate coverage in case of any eventuality. Please, I want you to understand a point here. If you financed your car through loan, the financier may make it compulsory that you buy comprehensive car insurance from an auto insurance company of their choice. This means that some of the points mentioned above may not apply to your situation. But immediately you finish paying your auto loan, you will be at liberty to opt for any type of car insurance policy that you think is okay for you.
Cons of Cheap Car Insurance
The main reason why people shop for cheap car insurance is to save costs. Actually, it is good to make use of any available avenue to save some costs. We understand that it is the drops of water that make ocean. A few dollars you save on a monthly basis can add up to become a substantial amount at the end of the year.
On the other hand, shopping for cheap car insurance should be done with caution. Cheap car insurance may have its own disadvantages. I will like to discuss some of these disadvantages with you so that you can evaluate whether the few bucks you want to save will justify all the efforts you will put into getting cheap car insurance. That is to say, you should bear in mind the reason why you want to purchase insurance policy. I think it will be helpful to remind ourselves what insurance is all about. What is insurance? Insurance is simply a way of providing protection against possible losses or eventuality which might be caused by specified contingency. If your insurance policy is not providing you the needed protection, then the cheap auto insurance is of no relevance.
Poor Customer Service: Have you ever pondered why a car insurance company will choose to offer auto insurance quotes that are obviously lower than industry standard? If any offer is too cheap, this can be a red flag to what to expect in term of customer service. There is a saying that, “what you pay for is what you get”. For a car insurance to be able to afford to offer cheap car insurance, it may be that the insurer is cutting down on certain costs. For example, cutting down on the number of employees or staff salaries an insurer pays its staff will impact on the quality of service from employees. Imagine a staff doing the work that ought to be done by two people. The pressure will be too much on the staff to the point that he may not be able to carry out his functions effectively.
Nevertheless, there may be exemptions. The fact that an auto insurance company offers cheap car insurance may not negate its ability to render quality customer service. An upcoming auto insurance company may offer cheap car insurance quotes as part of its marketing strategies in order to penetrate the market. If this is the case, you can actually enjoy better service from such auto insurance company. The company will be willing to do everything to satisfy its customers. If you are in doubt of the kind of service the insurer will provide, you can read customer reviews and comments about the company. Why it is possible for satisfied customers not to make comments, there is tendency for unsatisfied customers to complain.
Poor financial status: If an auto insurance company offers very cheap car insurance quotes, it might be an indication that the company is struggling financially. You should not be surprised if you wake up one day and hear the news that the company has collapsed.
Inaccessibility: Cheap car insurance is not available to every Dick and Harry. Even though an auto insurance company advertises cheap car insurance quotes, it may be frustrating to discover that the quotes are not open to everyone. There are certain conditions that are usually attached to cheap car insurance. Except you meet the terms and conditions, you may not be able to benefit from the offer. For instance, you may be required to bundle your other insurance such as home insurance with your auto insurance. If you are not a home owner, you will not qualify for the cheap car insurance the company offers.
Increased risks: Any time you opt for higher deductible in an attempt to getting cheap car insurance, you are actually increasing your risks exposure. No matter how skilled you are, you can’t tell what might happen in the next hour. If accident happens, you will be responsible for payments of more bills.
Higher car rental: There is likelihood that cheap car insurance will not provide a cover for car rental. If you are involved in an accident, your car insurance company may not be able to fix or repair your car immediately. Except the insurance policy includes car rental coverage, you will need to pay for car rental through the period your car is being repaired. The costs you will incur in the process will be more than what you would have paid as part of your car insurance premium.
Licensed Status: If you are too particular about cheap car insurance, you may fall into the hands of unlicensed or fake auto insurance broker or company. If you search through the internet, you will see myriad of insurance deals from various auto insurance companies. Almost every auto insurance company advertises cheap car insurance. It may require extra efforts to actually ascertain that you are dealing with a licensed auto insurance company. However, there are things you can serve as red flags anytime you are shopping for car insurance quotes. For instance, you may be dealing with a fake auto insurance company or agent if the insurance deal being offered you is too cheap compared to other car insurance quotes you received or you can’t even locate the address of the company. Supposing you receive an auto insurance quote for $600 while other car insurance companies quote between $1,400 and $1,500, this should signal to you that something is wrong. This is not just a cheap car insurance, the amount is ridiculously too low. Don’t allow anyone to lure you into this type of insurance policy. Other red flags may include:
- Misspellings: It is not uncommon to find misspellings in the paper work given to you.
- Sharp practices like backdating of policy
- Preference for cash payment from the insurance agent
- No receipt after payment
If you are not sure of the status of the car insurance company you are dealing with, you can take the following steps before buying any policy from them:
- Ask for the license number of the agent and check it up online. This may be necessary especially if you are buying through an insurance agent or broker.
- Check the auto insurance company’s website safety features. Insurance belongs to financial industry. Most of the companies in financial industry (including auto insurance companies) have a valid SSL certificate. They will even disclose what they do with their customers’ personal data. It is risky to supply your vital information on a website you cannot trust.
- Contact the insurer. You can save yourself of future pain that can result from buying fake auto insurance policy by visiting the office of the auto insurance company involved. Placing a telephone call or sending a mail may not be enough in this situation.
- Check the auto insurance company’s ratings and customers’comments online.
Cheap Car Insurance Myths
There are myths a lot of people erroneously believe about how to get cheap car insurance or about auto insurance in general. Possibly you might have heard about some of these myths. But if you are new driver, you may think that these myths are true. The truth is that, they are simply myths which do not hold any water as far as auto insurance is concerned.
Read Also: How to find a good insurance broker or agent
I can change the colour of my car to get cheaper auto insurance: How on earth will colour of a car determine the auto insurance premium a driver has to pay for his car? Some people can be so emphatic about what they don’t know. Truly, some colour can be very expensive but it does not have anything to do with the car insurance quotes you will receive. As a layman, they may tell you that cars with red colour will attract high insurance premium. This is not true. I don’t even know the origination of this myth. Possibly a person bought a red car and it happened that he paid higher car insurance premium than what he used to pay. The increase in the auto insurance premium would not have anything to do with the colour of the car. Instead, it is more of the type, make and model of the car along side with the its engine size that must have contributed to the increase in the auto insurance premium. So, if you have a red car and you are considering changing its colour so as to get cheap car insurance quotes, this action will not change anything. You will be surprised that you will still get the same insurance quotes if other factors remain unchanged.
It is safer and better not to report an accident: If you think that it is a smart thing not to report an accident to your auto insurance company in order to keep your premium at the same level, you better think twice. The truth is that you don’t need to report an accident before your insurer know about it. If you don’t report, the driver of the other driver may file a claim that may prompt your auto insurance company to be notified. If this happens, your insurance premium will automatically increase. This may negate your efforts in getting a cheap car insurance rate.
I must not include young driver in my insurance cover: Some people will deliberately exclude young drivers from their insurance coverage when they know that the person ought to have been included in order to get cheap insurance quotes. This is totally wrong. If the person get involved in an accident while driving your car, you will be the one to pay for the repairs of the car. The insurer can even cancel the policy because of your failure to make adequate disclosure. At best, you will be asked to pay higher auto insurance premium.
My credit has nothing to do with my auto insurance premium: It is difficult for some people to relate the high auto insurance quotes they get with their credit status. They think that there is no correlation between credit score and auto insurance premium. This is like saying that saying that your performance does not have anything to do with your health status. The trust is that, you will pay higher car insurance premium if you have bad credit. If you want to get cheap car insurance, you’ve got to work on your credit.
My personal car insurance covers business use of the car: Don’t think that your personal car insurance will cover both the personal and business use of your car. Perhaps you only use your car for personal use when you purchase your insurance coverage. You have the duty to inform your insurer if there is any significant change in the way you put the car into use. Even though, the auto insurance company may be willing to extend the insurance cover to include the business use of the car, you need to inform the company. This may result that the insurance premium is revised upward.
I only need minimum car insurance coverage: A lot of people prefer to go for the minimum car insurance cover and this has made people to think that they only need to meet the minimum car insurance requirements as specified by the law of each state. The main reason for people to opt for minimum car insurance coverage is because they are seeking for cheap car insurance. The truth is that, minimum car insurance coverage may not provide you enough cover that you might need. If you are involved in a car accident that results to total write off of the car, the insurer may not be able to replace the car for you under minimum car insurance coverage. This means that you will need to pay for the replacement of the car and other incidental costs on your own.
I can only get cheap car insurance from insurance agents: There are many insurance agents with good marketing skill who can easily confuse people to make them believe that they can only get cheap car insurance if they buy their insurance policy from them. This is not true. They are just being economical with the truth. Of course, some of them can help you get cheap car insurance quotes by helping you get car insurance quotes from two or three auto insurance companies. The truth is that, you can actually get cheaper auto insurance quotes on your own if you have time to get extra car insurance quotes from more auto insurance companies. The more the number of car insurance quotes you get, the more the chance that you will get cheap auto insurance. Perhaps you want to buy your auto insurance through a specialist, insurance broker will be able to offer more auto insurance quotes as they are independent. They work with many car insurance companies.
I am covered if my car is stolen, vandalised or damaged: This is a myth you must not believe. You must come to the reality of what your auto insurance policy covers. For people that only buy minimum car insurance coverage, the auto insurance company that insure your car is not under obligation to replace your car if stolen. Your car may not be repaired by the insurer if your car is damaged by wind, fire or storm. If you want to enjoy this type of coverage, then you need to go beyond the minimum car insurance coverage. The insurance cover you need in this case is comprehensive car insurance. This is optional of course. You are not mandated to buy comprehensive car insurance. However, if you buy your car through loan, the financing company may make it compulsory to buy comprehensive car insurance. You can change to other type of auto insurance after you finish paying the auto loan.
I will get cheap car insurance quotes because my car is cheap: Don’t be deceived that you will get cheap car insurance quotes if you buy cheap a car. Somebody may want to persuade you into buying a cheap car with the promise that you will not pay high insurance premium. This may be partly true but insurance premium calculation is not based on the cost of a car alone. If the car is an unusual model and has a large engine or its weight is very heavy, you will be surprised that the insurance premium of such car may be unusually high.