If you drive a vehicle, you should have car insurance. After all, car insurance is a great way to protect yourself in the event of a collision. However, buying car insurance can be a daunting task. You have to fill out plenty of forms, answer tons of questions, and wait for many different quotes to come in. So with all the different options out there, how exactly do you pick the right car insurance for you?
Determine what insurance you need.
When choosing your car insurance, it’s important to determine exactly what type of insurance you need. For instance, not all states have the same requirements when it comes to having car insurance. In addition, you should also look at your own situation. Those with new drivers should consider full coverage, especially if you have a vehicle you’re currently making payments on. However, if you have a very old vehicle and don’t drive it often, opting for liability coverage could be the best solution. Plus, liability insurance often costs less.
There are plenty of insurance providers out there, from big name companies to smaller ones. And while you may feel like going with a big name provider, they’re not always the cheapest. According to mercury insurance.com, “Small, local insurance companies may actually come in much cheaper than national options. Be sure to look for all the providers in your area and talk with them about their prices.” When you do this, you’ll be able to truly compare the different options out there.
Scour for discounts.
There are certain discounts available on car insurance, so do your research to find those that may be available for you. While there isn’t a set list of discounts, there are plenty of options that providers offer, such as:
- Owning a car with anti-theft technology
- Being a member of a certain organization
- Bundle car insurance with other policies
- Have a clean driving record
- opt for paper-free billing
Doing any or all of these things could help you reduce the cost of your car insurance, making it more affordable for you in the long run.
Raise your deductible.
Your monthly payment and your deductible are related. If you have a higher deductible, your monthly payment will be significantly less. If you’re really looking for ways to save money on your car insurance, then having a higher deductible is one of the easiest ways to cut down your payment.
Pay bills on time.
Most people don’t realize that your car insurance rate may be related to your credit score. If you have problems paying your bills on time or if you have a very poor credit score, you may find that your insurance rates go way up. Find ways to keep your financial situation in order so that you can take advantage of lower payments.
Safe driving is one of the best ways to keep your insurance costs down. Drive safely and use defensive driving techniques in order to stay out of collisions or getting pulled over for speeding or breaking other rules of the road. This may not result in a huge savings, but any little bit will help.
Choose the right vehicle.
The type of vehicle you drive plays a role in your insurance rates. Vehicles that are safer, such as sedans and SUVs, often cost less to insure. On the flip side, sports cars and luxury models are often more expensive to insure. If you really want to find a way to save money on your insurance, then be sure you’re not trying to insure a vehicle that will cost significantly more. Instead, always opt for the safer vehicles and see how it can save you money.
Compare prices (again).
No, it’s not a misprint. When it comes to car insurance, comparing prices is something you should do annually. You’d be amazed at how often insurance rates can go up, and most people just pay the difference to avoid the hassle. However, a quick phone call to different providers could help you realize that you are being over-charged. If this occurs, be sure to talk with your current insurance provider and let them know about the better price you received.
Shopping for car insurance may not be the best use of your time, but since you need it, you should obviously make it work in your favor. Using these tips will help you find the right insurance coverage for you and do so in a way that benefits your budget.