November 5th, 2014
Finding car insurance is fairly easy for any driver. However, securing a good deal that suits your needs can be more difficult. To remedy this situation it's best to keep your options open. Some form of minimum auto insurance is required in every state in the U.S., with nearly 90 percent of drivers being insured.
It's common for drivers to be unaware of the specific details of their insurance policy because little time is spent reading the small print. Additionally, coverage policies may not match up with the amount of insurance a driver needs. Insurance providers are likely to suggest a larger policy because it minimizes the amount of financial risk against them and allows them to profit more off of each customer.
Securing a good deal is important to your budget and your safety while driving. To ensure your car insurance aligns with your budget, here are a few tips:
Know your risk
While it is common knowledge that younger drivers are inherently more risky, other factors can play a role as well. Previous insurance claims, the condition of your car and the amount of usage can all affect pricing. That's why it's important to understand how your driving habits are assessed by insurance providers. If you carpool to work or use ride-sharing programs, then it's probably not appropriate to have an expensive policy. Also, if your car is older, then it may not make sense to have a large amount of coverage for a vehicle that will break down soon. Having this background information in mind can help with your purchasing decision.
As is the case with all forms of insurance, you are ultimately the sole decision maker for the policy you buy. Don't settle for the first or second estimate. Rather, research several different types of coverage across a number of insurance companies and compare rates. This will help you get a good idea of just how much money you will be paying. Ask about discounts, rebates and incentives that providers offer because these can be vital determinants of your monthly budget.
Though companies typically afford you the option of paying in installments, it's best to avoid this scenario. You will likely be billed for additional charges and fees for premiums that aren't paid upfront at once. It could be the case that you weren't notified or aware of the add-on fee beforehand, which is why reading over each detail of your bill is important. If you have settled on a cheaper plan, paying upfront can be an easy way to make sure your insurance costs are staying low.
Take a class
If you complete a safety course, then providers will know that you are less of a risk, which will allow you to secure lower rates. When shopping around, make sure companies are aware of the classes you have taken, as they may not ask you themselves. Also, if you are interested in motorcycle insurance, then you'll have to get additional certifications and license requirements beforehand. These usually require extensive training and classes, which will help keep your premiums low.
Use the same provider
If you have several different types of insurance, then using the same company will be to your advantage. Many providers offer packages with cheaper overall rates because they want to retain you as a customer. This can be a great opportunity to have greater coverage while also paying less. If you have several family members who are driving as well, then this is a good option for your budget.