In today’s economy, everything seems to be increasing in price, including car insurance. Following are some suggestions to help you obtain cheap car insurance while still remaining fully covered in the event of a claim.
1. Shop around – Every company offers different rates and it is in your best interest to review your policy, preferably at renewal. If you do receive a lower car insurance quote, do not immediately cancel your current policy unless it is at your renewal. An insurance policy is a contract and you may be subject to penalties for cancelling mid-term.
2. Maintain a good credit score – Insurance companies factor in a person’s credit score when they determine the premium. Always pay your bills on time and regularly check your credit to make sure all information is accurate. In the event of a discrepancy, notify the credit bureau immediately.
3. Drive safely – Obey all traffic rules and drive defensively. Avoid distractions and never talk or text on a cell phone while driving. This can be as dangerous as driving while impaired.
4. Enroll in a Driver’s Training Course – New drivers who take an approved course will be credited with a few years of driving experience rather than starting out with no experience at all. This will reduce your rates. You will also learn the correct driving procedures rather than developing bad habits from other drivers.
5. Theft-proof your vehicle – Park in a secured garage or on a well lit street to deter thieves and vandals. Install an anti-theft device in your vehicle. Always keep valuables out of sight.
6. Type of vehicle – Research the type of vehicle you want to purchase and obtain several car insurance quotes before committing to that vehicle. Some vehicles are more expensive to insure as they are stolen or vandalized more frequently, or involved in more collisions.
7. Review your coverage types – Older vehicles may not be required to have collision and comprehensive coverage types. Insurance adjusters will usually only pay the actual cash value of the vehicle at the time of the loss.
8. Increase deductibles – The higher the deductible, the lower your premiums. Just keep in mind that you need to be able to afford the deductible should you be involved in a claim or collision.
9. Never lend your vehicle – If you lend your vehicle to someone else to drive, you also lend your insurance. As the registered owner of the vehicle, any damage or injury liability will affect your insurance.
10. Discounts – Getting the cheapest car insurance often involves asking your agent what discounts you may qualify for. Some of these discounts include senior, good driver, multi-product, and multi-vehicle discounts.