Choosing car insurance that covers your needs is a necessary expense for any car owner, but as anyone who owns a vehicle knows, costs add up quick. The good news: premiums can vary greatly. Taking the time to understand your options is the best way to ensure you’re not overpaying for your auto insurance.
Here are a few tips for saving money when choosing car insurance:
Shop around
Prices vary by company, so shop around. Get multiple quotes. Ask friends and relatives for recommendations, and consult invaluable services like Clearsurance, which has crowdsourced ratings and reviews for hundreds of companies, such as Esurance reviews from consumers. Also, do a little research yourself. Remember, the lowest price upfront isn’t always the “cheapest;” it’ll cost you more in the end if the company fails to provide adequate service or denies your claim.
Go for a higher deductible
By choosing a higher deductible on your insurance, you can significantly lower the cost of your premiums. Of course, it’s always important to make sure you have enough money to pay that higher deductible if you do end up having to make a claim! A higher deductible means a higher out-of-pocket cost in the event you have a claim.
Compare insurance costs before buying a car…if possible
Auto insurance premiums are partly based on your car’s price, what repairs cost, its safety record, and its likelihood of being stolen. Some insurers offer discounts for features that reduce risks of theft or injury. When comparing vehicles to buy, also research what each will cost to get insured. Check safety rankings for specific models with the Insurance Institute for Highway Safety.
Bundle your insurance
Many insurers will give you a discount if you buy two or more types of insurance like homeowners and auto — or have more than one vehicle insured with them. And some even offer reduced prices to longtime customers. There are no guarantees, so be sure to do your homework. You can quickly see which businesses consumers rate as the best homeowners insurance companies on Clearsurance if you’re looking to bundle.
Decrease optional insurance for old cars
If you own an older car that is worth less than 10 times your insurance premium, buying collision/comprehensive coverage may not be worth it. To find out if this is the case, check the value of your car on websites like the National Automobile Dealers Association (NADA).
Maintain good credit
A positive credit history typically means lower insurance costs. In fact, many insurers use your credit info to price your auto insurance policy, since studies show that people with better credit make fewer claims! Check your credit record regularly to ensure its accuracy.
Low mileage discounts
Some car insurers offer discounts to drivers who cover less than the average number of miles per year. If you carpool to work, for example, work from home, have a short daily commute or only use your car on special occasions, this may apply to you.
Also, as a final thought. You want to work with a car insurance provider that has a good reputation in the industry. For example if you get in a car accident and you get hurt, you’ll want to know if your insurance policy will cover personal injury. Incidentally, if you do get hurt and you live in New England, think about a Worcester MA personal injury lawyer. We like Schafer Law. They’re a solid little firm in MA. Give them a call, you won’t go wrong.
Learn more about the top car insurance companies by visiting clearsurance.com today!