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How to Get the Best Rate on Car Insurance

by Amy Walters

For drivers, car insurance is a non-negotiable expense. Not only does it protect drivers from the potentially expensive cost of vehicle repair after an accident, but it also covers those behind the wheel from a legal standpoint. In addition, most states require all drivers to be properly insured at all times. Anyone who knows the value of insurance and wants to secure the best rates should take advantage of these helpful tips.

Never Settle for the First Quote

Most Americans stick with the same insurance company, not because they are in love with the policy but simply because it is easier to re-enroll with the same plan than to pick up the phone and ask around for a new quote. If drivers have been with the same provider for several years and see an increase with each billing cycle, they might consider calling up a competitor and asking for a reduced monthly payment. Every company has a different algorithm for calculating payments, which means that your $300 family premium could be $150 with another provider. So what is the moral of the story? Be sure to use the many auto insurance comparison sites available across the web to evaluate more than one insurance provider.

Consider Increasing Your Deductible

Anyone who needs to reduce their monthly payment for financial reasons, and wants to do so in a hurry, can simply increase their deductible. The deductible is the amount of money the insured party pays when they have an accident or need repairs. By increasing this amount, the provider will pay less. This, in turn, reduces monthly payments. There is a caveat with this approach, however. Anyone who opts to go down this road needs to be careful to save enough money to cover the deductible in the event of an accident or theft.

Know Your Annual Mileage Before Seeking Quotes

When getting a quote for a new auto insurance policy, one of the first questions asked is how many miles are driven per year on the vehicle. Many people skip this section because they don’t know the exact number, but that is definitely a mistake. A blank gets translated as an incredibly high number, which raises the monthly payment. Always know exactly how many miles are driven annually, especially for drivers who don’t have long daily commutes by car, to enjoy better rates.

Improve Your Credit Rating

People not actively applying for new credit cards or home loans might not know their credit score, but it can impact car insurance rates. Insurance providers will charge higher rates to customers with low credit ratings. Anyone who doesn’t know their rating should check it and try to make improvements, or at least check for errors, before applying for car insurance quotes.

Weigh the Pros and Cons of Dropping Some Coverage

Anyone who is unhappy about their car insurance rate might want to consider dropping some of their coverage. Cars with a low total value might not need collision insurance, for example, which may end up being more expensive than the entire car is worth, depending on the deductible.

Car insurance may be a necessity, but no one should be overpaying for it. These tips can get drivers in America the best possible rates for coverage.

Author Bio:

Jon Engle is a freelance blogger residing in San Diego, California. He writes regularly for All Star Glass providing guidance related to auto restoration and car maintenance – such as windshield replacement. When not blogging, Jon can be found surfing Imperial Beach waves or spending time with his family.

 

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