When it comes to searching for and purchasing affordable car insurance, you are your best advocate. This is not always an easy task.
When searching for the lowest possible rates from an insurance company it is important to learn what types of coverage’s you must attain, research the reputations of the companies, and take advantage of every discount you may be eligible for.
Here is a step-by-step guide to attaining the lowest possible rates:
1. Know your vehicle. The amount of money you pay for collision and comprehensive coverage depends on the make, model, and year of the car you drive. In most cases, the newer and more expensive your vehicle, the higher your premium will be. If you aren’t able to afford a lot of insurance and you’re in the market for a car, you might consider buying a car that is inexpensive.
2. Know your states limits. Minimum limits of liability insurance coverage, both for bodily injury and property damage are set by most states. It is important to look up and research these limits. If you are taking out a loan to purchase a new vehicle or used car, it is likely that the lender will require that you carry a certain level of comprehensive coverage as well as collision coverage according to the NAIC.
3. Taking the highest deductible possible to lower premium. An easy way to lower your premium is to take high deductible. When you opt for an annual deductible that is $1,000 instead of $250, you will pay less up front. The downside is that if you are responsible for an accident you will front more of the bill before your insurance kicks in.
4. Know your credit score. In some instances insurers will allow you to take your credit history into account. In order to achieve a higher credit score it is important to pay your bills on time, stay on top of your credit report, and do anything in your power to fix problems that could be lowering your score.
5. Discounts. Most insurers offer many discounts. Some of these discounts include: retirees, lower rates for drivers with short commutes, good grades, or vehicles with safety devices that include an alarm or motorized seat belt.
6. Asses your insurance needs as well as your premium costs yearly. Insurance premiums are always subject to change. It is important to review your policy once a year. When reviewing your policy this is also a good time to check on whether you are eligible for additional discounts.