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.
Compare providers.
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.
Drive safely.
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.
Is it Better to Buy Car Insurance in the Summer?
There are a number of drivers that may not be aware of the impact the seasons have on insurance premiums. Common knowledge tells us that the winter months present more hazards and a higher risk of accidents than in the summer, but does this really affect car insurance premiums?
The answer is yes. It does not always come down to just the weather, however, but a number of factors which present a higher risk to insurance companies. Car insurance quotes change throughout the year for different reasons, yet, over the past few years in many parts of North America, December was the most expensive month to get cover. As prices have spiked in December since 2013, they have fallen by mid-January.
This is not a trend only experienced by Americans and Canadians. The British have also witnessed a trend in prices rising significantly in December.
According to The Telegraph, 2015 saw a rise in the price of an average policy by 7% in December. These prices were also highlighted during periods when “insurance prices otherwise remained fairly stable.”
One reason cited by a leading insurance provider in Britain was that, due to the holidays, there were fewer quotes being generated. The companies which were more active around Christmas and the New Year could effectively raise their prices due to the lack of competition. When everyone was back to normal in early January, marketing campaigns and price deductions naturally led to a drop in the average quote.
More Vehicles on the Road
Another theory behind why insurance prices tend to go up in December (but car prices don’t) is that there are more vehicles on the road. For example, the majority of workers will have time off over the holidays and will be driving from place to place; whether it is shopping for the holidays, visiting family, or simply enjoying leisure time.
More vehicles on the road mean more chances of crashes and accidents, in general. This could be the reason why certain states see a price hike in the summer months. As students are not in classes and there are more and more first time drivers looking for cover, insurance companies may deem this to be a significant risk in general.
Back to the Weather
It is very difficult to discount the role of the weather when it comes to insurance companies producing higher quotes during the winter months. With heavy rain, snow, icy roads and treacherous conditions, the chances of an accident occurring are naturally increased.
Insurance companies rely on a multitude of stats and figures, so they will account for things such as how the weather plays a part in collisions, for example. Understanding this may influence drivers in when they choose to look for insurance cover, if they have the luxury of doing so.
When it comes to purchasing car insurance, there may be certain times of the year when quotations are higher to some, but this is not applicable to all. The best thing to do, as always, is compare and go from there.