Nobody wants to spend more than they have to on car insurance. Of course, you already know that car insurance is required if you’re going to drive on the highways and byways in your city. However, you don’t have to pay astronomical rates for that car insurance, if you do just a little bit of work and a little bit of research.
It’s important to note that no two insurance companies are the same, meaning one may charge more for car insurance than another will. There are several tips and tricks for finding the cheapest car insurance rates in the market. In general, just take your time and you’ll soon find the right car insurance policy for your needs.
Below are seven ideas on how to get cheaper insurance rates
1. Ask for cheaper insurance discounts
Discounts are pivotal in order to get cheaper car insurance rates. You look for bargains when you go to the grocery store don’t you? You also asked about discounts when you bought the car, you’re now trying to get insured, so why wouldn’t you ask for discounts through your insurance company as well?
Some discounts you should ask about when researching an insurance company are listed below.
- Clean driving record discounts
- Bundling car insurance with other insurance, such as homeowners
- Insuring more than one car
- Agreeing to receive documents and bills online
- Signing up for autopay
- And much more
2. Always pay your bills on time
In order to get cheaper car insurance rates, you need to be mindful of your bills. Many car owners don’t realize that their credit score has a lot to do with the insurance quote they receive when trying to insure a car. This isn’t true in every state, so make sure you check in yours when doing your research.
If you pay your bills on time, it will show up in your credit score and garner you a cheaper rate on your car insurance in most cases. Having a poor credit score has been known to increase insurance rates by hundreds of dollars in a year, so keep on top of your bills to get those deep discounts.
5. Check out insurance costs when buying a new car.
Car insurance rates are determined by the type of car you purchase as well. You can’t expect a sports car to give you the same insurance rates as a family car can. There are cars that are cheap to insure and others that will shoot your rates through the roof, no matter what type of discounts are offered.
Check the insurance rates before you sign on the dotted line if you want the least expensive insurance options out there.
6. Choose a higher deductible on your insurance
If you choose to purchase comprehensive or collision insurance, also known as full coverage, then you will get lower rates if you go with a higher deductible. Of course, this also means that your out of pocket on accidents or damages will be higher until that deductible is met.
The choice is yours on which is best for you. Which is better, a higher premium or more out of pocket if anything were to happen to your car that your car insurance policy would cover?
5. Don’t assume any insurance company is the cheapest.
One of the biggest assumption’s car owners have is that their insurance company is the cheapest. In fact, some insurance companies spend a ton of money on commercials to convince you they have the cheapest rates out there when it’s just not true.
In other words, the insurance company that is cheap to one person in one area may not be the cheapest for another person in another area, so you need to do your research before jumping on the bandwagon of most insurance companies.
The only way to make sure you’re getting the best rate is to shop around until you find it.
6. Don’t ignore your local insurance company.
Another mistake car owners often make is ignoring their local insurance company in favor of the major insurance companies out there. While companies like Geico, All-State and State Farm control most of the insurance world, the smaller companies tend to have a higher customer satisfaction rate and often have cheaper rates as well.
Check your local companies before moving onto get insurance with a major brand. You might be pleasantly surprised at what you find in the way of car insurance rates when you do.
7. Take your time choosing the cheapest car insurance
When it comes to finding the cheapest car insurance rates, it all comes down to doing the proper research and taking your time choosing the best policy for you. Call around, determine who is cheapest, and has the best customer service, then make a final decision after you know what the best rates are in your area.