If you have a car, surely you will need car insurance. Unfortunately, only a few of us fully understand it. Many car insurance companies may be competing against each other in your area, including nationwide agents and local insurers. Each of them offers us the interesting variety of quotes. It will make it hard to compare insurance quotes and figure out what is the best for you. Especially, when people always look for the cheapest yet the best when it comes to car insurance.
Car insurance is relay important especially for the young adult who just got their car. Rather than staying with your dad or mom’s insurance, it’s better to have your car insurance since many teens, and young adults are more risky to drive a car without insurance. Car insurance can be very complex whether it is for young or old drivers. So use our tips before you make any decisions.
Finding Cheap Car Insurance Quotes
If you are looking for the cheapest insurance quotes, there will be some guidelines worth following as you do your research based on your state. Here are eight tips you can follow to ensure that you will get the best coverage at the lowest price possible.
- Don’t think that any one company is the cheapest
We will remind you that there is no insurance company that offers you cheap insurance quotes, including car insurance. Although some companies are spending a lot of money on advertising, they will try to tempt you that they have the lowest car insurance rates. In fact, the prices individuals will pay for the same cover price at the same company vary widely. No single company can claim that their quotes are the cheapest on the market.
The insurance company that said their quotes are the cheapest for one person in one place might be the most expensive option for a driver in other states and vice versa. Other insurance companies have also developed complex quotes which may charge you the expensive price if you want to switch providers. This practice is called “price optimization” and has been banned in 16 states.
- Understand what you’re buying
Since a car insurance is a legal contract which may load with some technical terms that you will find difficult to understand, you need to understand what you’re buying. Before you sign on the dotted line, read it to find out about the coverage you are going to buy. You need to know who or what covered, when coverage begins and ends, how much you will for each month or year, how much coverage provided, what coverage limitations apply, how you file a claim or report a loss, and so on
It’s better to get help from an insurance professional to explain the types, terms, conditions, and benefits of car insurance that you will buy. You can also ask some things that you don’t understand. As you look for ways to save money, make sure that you fully understand what coverage you might pay. A tip for the young driver, you can look into car insurance for teens, and you might get the best rates possible.
- Check for discounts
Many car insurance companies offer a variety of discounts. This include price breaks for customers who insure some cars with one policy, bundle car insurance with other policies, have a clean driving record, own a car with certain safety or anti-theft features, agree to receive documents online, pay for their entire six-month or annual premium at once, or are the members of affiliate groups. Discounts may be different by company and state location. You can check their company websites or call them to find out which ones might apply to your condition.
- Check local and regional insurance companies
Nearly half the nation’s car insurance business is controlled by four companies which are Geico, Allstate, State Farm Insurance, and Progressive. You can check your local and regional insurance companies such as Erie Insurance and Auto Owners which surprisingly have higher customer satisfaction ratings rather than those four big names. Maybe they have lower rates, too.
- Think about the Insurance Cost before Purchasing a car
When you decided to buy a car, it is natural to check the repairing costs or the fuel efficiency and any other features, but you need to think about the insurance premiums too. It can vary between popular cars. You should check NerdWallet review of rates of best-selling cars in the states found that the Toyota Camry which cost an average $180 per year more insure than the comparable Honda CR-V.
- Pay your bills on time
Improve your credit by paying your bills on time. You can also lower your premium to reduce your debt. You need to track your progress by checking your credit reports once in a year. Why do you need to do this? Your credit can be a significant factor in the car insurance quotes comparison that you receive. But if you live in Massachusetts, California, and Hawaii, they don’t allow insurance companies to consider it. The companies said that customer’s credit could correlate whit their risk of file a claim or report a loss.
- Consider raising your deductible
When you have the latest car model, sometimes you need to carry collision and comprehensive. Some lenders also require those two. You can save a substantial amount of money by raising your deductible. A study from NerdWallet reports that rates in California and Florida found that customers who are raising their deductibles from $500 to %1000 can save about $150 per year on premiums. And those who raise deductible from $500 to $2000 can save about $350 per year. This method will make you pay more pocket if you do make a claim.
- If you don’t drive much, consider usage-based plans
The last tip to get cheap car insurance quotes is by considering usage-based plans. If you’re a safe driver who doesn’t drive much and sign up this program, it allows you to insure your driving track electronically in exchange for some discounts. You are able to save money with this program if you drive less than 10,000 miles per year.