With prices of pretty near everything around us continually on the rise, most of us are looking to find ways to save money, any way we can. Car insurance is a necessity- by law we all have to have insurance on the vehicle that we are driving. There are many ways to save on insurance, if you know what to look for and where you can cut costs. You want to make sure that while you are paying the best rate possible for insurance, you are also getting the coverage that you need. Getting the best insurance rates can mean keeping your budget intact, and your vehicle covered properly.
Knowledge is Key
Understanding the types of insurance coverage offered is the first step to getting the best car insurance. When you don’t know what you are purchasing, a shady insurance agent can make you believe that you need all kinds of coverage, when you don’t always need it everything they offer. For example, comprehensive and collision are two of the main terms that are thrown out there when dealing with car insurance. These two types are optional coverages that are there to protect your vehicle if damages occurs to it. However, most loan companies require this coverage if you are still paying on or leasing your vehicle from them.
Many times, comprehensive is known as “other than collision” coverage. Comprehensive pays for damage done by issues other than a car accident. For example, it will cover damage from a fire, flood, animal, vandalism or if your vehicle is stolen. Collision coverage takes care of damage done by accidents with other vehicles or objects, regardless of who is at fault. This coverage requires the owner to pay the deductible that was chosen for the policy, and the insurance company will take care of the rest of the damages. Some companies do not sell collision and comprehensive insurance separately; they will only sell them as a package deal.
Liability is the other half of the main coverages known in the insurance world. Liability insurance is the cheapest and least amount of coverage that a driver is required by law to have. Liability insurance will only cover the other person if you are in an accident. You, as the insurance holder, would be responsible for damages done in an accident to your own vehicle, including medical bills. However, there is a great difference in price, so many people who own their own cars opt for this type of insurance coverage. It is also a good idea for older drivers who may not drive their cars often, or any driver who is not on the road too much.
Knowing the different types of auto insurance will help you negotiate a better rate. You won’t get sucked into purchasing higher limits when you may not want or even need them. This will help keep your auto insurance rates down to an affordable level.
Deductibles
The deductible on your vehicle is the amount you will have to pay if you have purchased collision and/or comprehensive coverage. When you are in an accident, the insurance company requires you to pay the deductible before allowing you to take possession of your fixed vehicle. You pay this amount, and the insurance company will then cover the rest of the damages. The typical insurance coverage on a deductible is either $500 or $1,000. While having to pay a $1,000 deductible in the event of an accident sounds worse than $500, there are discounts monthly for choosing this limit.
Extra Features
You now know about the bigger types of auto insurance coverage. But that won’t be all you will have to decide on. There are many other features that you may be asked to include when you get started on a policy. While some you may want, there may be quite a few that you don’t, and will just tack on extra fees to your bill each month. Don’t let an insurance agent pressure you into purchasing other features with lines like “it only costs a dollar or two more per month”. Over time, a few extra features will still cost you more money then you need to spend.
Towing
One feature you may want to consider is towing. You will need to pay a bit extra on your policy a month, but towing insurance covers up to a certain amount if your car breaks down and you need to have it towed to a garage. Typically, this coverage offers from $75 to $100 towards towing reimbursement, and some companies will not even require you to pay the fee out of pocket. Even minor accidents may require a tow truck, so this is one insurance coverage you may wish to consider.
Car Rental
Car rental reimbursement is another option many consider when purchasing a car insurance policy. If you are in an accident that is not your fault, and you have to take your vehicle into a garage, the other person’s insurance will cover you for a rental car. However, if you are in an at-fault accident, or you damage your car by hitting a deer or property or the like, you may be without your car for weeks. Car rental coverage will allow you to rent a vehicle for a certain amount of days and for a certain price limit per day. If you happen to have two vehicles in your family, you may opt out of this coverage, as well, to save money.
Emergency Roadside Assistance
Some insurance companies offer emergency roadside services in their policy. This may include the following: lock out services, gasoline delivery, dead battery jump and flat tire changes. This coverage can be an excellent choice for many people, especially those who travel far and/or travel alone. However, many people already have other emergency coverage from an unrelated source, so this coverage would then be unnecessary.
Discounts Available
When you are looking for cheaper car insurance, you can utilize many different discounts that are available to you. You can save a large average by getting many different quotes and seeing what company offers you the best policy. Don’t let a company lock you into a price without finding out all the discounts they may offer their customers on a policy.
One of the biggest ways to get cheaper insurance coverage is to have safety features on your vehicle. This may include airbags, and either driver, passenger, side or a combination of all three will qualify. If your vehicle comes with a anti-theft key, meaning that there is no way for your vehicle to be “hot-wired” and stolen, you can receive a discount. Any other anti-theft systems on the vehicle can also qualify for discounted insurance rates. Anti-lock brakes may also get you a discount, as well as rear parking sensors, which sound an alarm if you are in danger of hitting something while you are backing up.
Where you live may get you a discount on your car insurance, as well. If you live in an area where the crime rate is higher, your car insurance company may charge you more to live in that area because of a higher possibility of theft. While it may be difficult to move just for the sake of auto insurance, it is something to keep in mind for when you do plan on making a move in the future.
Your credit rating may also have a bearing on the type of car insurance that you are given. The higher your credit score, the better your rate may be with many insurance carriers. Companies want to see that you are dedicated to paying your bills on time and being responsible, so they may give you a discount for a higher score.
Purchasing multiple insurance coverages from the same company may also help lower your rate. If you need home or renter’s insurance, or perhaps boat or motorcycle coverage, getting them in conjuncture with your auto insurance can save money. You may also get a break if you insure two or more vehicles under the same policy.
Those who have low mileage on their vehicle, and do not drive far on average, can usually qualify for a discount. The insurance companies generally ask about how many miles you put on your vehicle for work, whether you use your vehicle for work, and if you drive for business or just pleasure. Driving less can save you money.
When you start a policy, you are usually given a few different options on how to pay it. The options are generally once a month, every 3 months, or to pay the policy in full. If you can afford it, taking the pay in full option will almost always get you a pretty decent discount on your car insurance. Companies love customers who pay up front, and are often eager to award them for it.
Do you have a great driving record? If you do, you can generally ask for a discount on your policy. Tickets and violations can really increase the price of your policy, so if you have a clean driving record, your policy may be less because of it. Ask if there are available discounts for not having a ticket or vio9ation on your recent driving record.
Younger drivers typically have more trouble getting cheaper car insurance, because they are inexperienced. However, there are still ways to get the best price regardless of experience or age. The first step is to take a driver’s safety course. Many companies will then give their newer driver’s a discount for taking and passing the class. Many high school’s offer defensive driving courses, or check with your local DMV for one near you. Parents may also choose to add their son or daughter to their policy in order to get discounted car insurance. Most companies will give a better deal for multiple people on one policy.
Violations and Tickets
Unfortunately, not everyone has a perfect driving record. A speeding ticket or other traffic violation can cause your insurance rates to go up. If you get a DUI, you can expect your rates to skyrocket. Some companies will even drop their customers for a first time DUI. Getting insurance after a violation can be difficult, so you have to take the time to look at all companies and policies to get the best one. Many companies do not go back farther than three years when they are looking for accidents and tickets on your driving record. However, some look as 5 years, so you will want to find a company that does not go that far back to get the best insurance quote possible.
Remember, if you are on a policy along with your husband or wife, any tickets or violations they receive will also count against you. Maintaining the best driving record is your best shot at keeping your insurance policy as low as possible.
Getting a Quote Online
Free insurance quotes are easy to get when you go online. Day or night, you can browse policies, request quotes, and choose the policy that fits your specific needs. You don’t need to visit any offices or make phone calls, simply use our website to get the best rates that you can. For whatever situation you are in, there is a policy designed just for you.
