Understanding what makes auto insurance premiums higher or lower will save you money. Sometimes people with no claims see their insurance go up due to company premium rate increases. That’s why it helps to know how to shop and snag the best deal. Here are a few tips to help you pick your car insurance coverage and save money on premiums.
What Kind of Coverage Do You Need?
Before you start shopping, you should know what type of coverage you need. The amount of liability and comprehensive coverage required by law varies by state. Liability covers damage that you cause to someone else’s property or person. Comprehensive insurance covers damage to your car from things like weather or theft. Collision coverage is optional; it pays to repair or replace your vehicle if there’s an accident.
What Deductible Should You Choose?
If you need comprehensive and collision coverages, you’ll have to decide what deductible amounts you’d like.
Other coverages you might also be interested in are:
-Emergency roadside service
-Gap insurance
Choosing an Insurance Company
When you’re ready to pick your insurance provider, besides looking for the most affordable car insurance premium, take time to read about the insurance options you want to go with. Residing in a state that allows insurers to check your credit or being a new driver can affect the cost of your insurance.
Making the Call
To find cheap auto insurance, create a list of all the auto insurance providers that you are considering. You might have several options in your area or state depending on what kind of coverage you need, or there may be one provider offering various insurance plans. Before you call around, be sure to have your driver’s license number and details on any previous claims that you have had. Have a copy of your current policy handy so that quotes can be compared. Discounts can vary from company to company.
Ask about discounts such as:
-Low mileage
-Winter storage discounts
-Good driver discounts
-Telematics discounts, aka usage-based car insurance discounts
-Environmentally friendly discounts
-Alarm or tracking device discounts
-Retiree discounts
-Professional, occupational, university degree or association discounts
-Student discounts or student away-at-school discounts
