Getting the Best Rates for Car Insurance
When looking for car policies, one of the biggest questions people have is, “How can I save money?” Given the current state of the economy, individuals are especially concerned with reducing costs, conserving their resources, and making the most of the money they have. If you’ve been with the same provider for a long time, or you’re looking to change companies for a better deal, you’re in luck. Shopping around and comparing quotes can save you anywhere from $50-$500; a wise consumer can also take additional steps to reduce his or her rates further.
The most basic way to save money on your liability coverage is to keep up a clean driving record. Observe local traffic laws, never get behind the wheel if you have consumed alcohol, and handle any collisions that may occur responsibly and with respect to your local laws, and you will be able to maintain an immaculate driving history that will serve you well when it comes to securing the best rates.
Customer loyalty can also be an important way to make your life easier and save you money. If you insure multiple vehicles through one carrier, or if you decide to purchase auto, home, or other types of policies through one company, you can receive discounted rates as a thank you for your loyal business.
It’s also never too late to go back to driver’s ed. Whether you studied driving with a professional as a high school student or taught yourself to drive in your father’s old beater, everyone can benefit from a good defensive driving course as an adult. Seniors especially can expect discounts if they take a refresher course in driving offered by the local division of motor vehicles, or through AAA or AARP. Defensive driving courses are generally short, inexpensive, and very worthwhile.
If there is a student driver in your home, look for companies that specify themselves as being friendly to teen drivers. Insuring a teen motorist can be costly, and working with an insurer that welcomes young drivers is the best option you have for saving money. These companies typically offer discounts for honor roll students, as well as for students who have successfully completed driver’s ed with a private tutor. They also offer accident forgiveness, which is a policy that forgives, or ignores, your first collision so that you are not penalized financially for one mistake.
You can also save money by making smart choices about your vehicles. Brand new vehicles and vehicles that are leased or loaned to you will require more expensive comprehensive and collision add-on policies, and sometimes even a “gap” policy that will cost you more above and beyond what's typical.
The type of car you choose will also have bearing on your rates – in a positive or negative way. Minivans, sedans, and coupes, for instance, are less expensive to insure than large trucks, SUVs, and sports cars. Speedy vehicles and larger autos are more dangerous on the roads, capable of inflicting more damage, and therefore, more costly to cover under a liability policy.
A higher deductible can also reduce your monthly payments. By taking on more of the risk yourself, you alleviate the need for the provider to charge you such a high amount for a policy. However, it is important to consider whether or not you can afford the costs of repairs to your vehicle if you do maintain a very high deductible.
For small but still noteworthy discounts, look for providers that are affiliated with your trade or professional organization, or with another group to which you belong. Many insurance companies work with unions, military personnel, hobbyists, and others to provide them with lower rates than they would receive otherwise.
Most importantly, do your research. Get multiple quotes so that you can fully compare the options that are available to you. Rates vary widely, and shopping around is the only way to ensure that you receive the best deal!