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How to Find Affordable Car Insurance
Author David Schneider | Aug 10,2007
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While finding insurance might not be your top priority right after you buy a new car, insurance coverage is a must for any driver. All states require drivers to carry basic insurance, which protects both you and other drivers in the event of an accident. Failing to carry car insurance can result in large fines and penalties if you are caught. However, finding the best deal on car insurance isn't always simple. Television commercials and Internet ads are full of claims of the lowest prices and greatest coverage, but these offers don't always live up to the hype. In order to find the most affordable price on car insurance, it is essential to do your homework and spend some time researching different insurance options. Prices can vary widely, so this preliminary work can save you a substantial amount of money each year.
Get Quotes from Several Companies
Looking for insurance can be a pain, but careful research now can lead to big savings down the road. Never settle on the first quote you receive. Instead, get a number of quotes from several different companies and then carefully compare the costs and coverage that each offers.
Determine What Type of Coverage You Need
As you are shopping for car insurance, you need to decide which type of coverage you need. Liability insurance is the bare minimum necessary in every state, but you may want to carry additional coverage to ensure that other expenses are paid if you are in an accident. Comprehensive insurance pays for car damage or loss involving theft, fire, vandalism or other problems. Collision insurance covers damages to your vehicle that are caused by auto accidents and collisions.
Car Insurance Referrals Are Not Enough
Recommendations from friends and acquaintances can be a great way to find out about great movies and music, but this advice isn't the best way to find affordable car insurance. While your friends may have gotten a great deal with a certain company, this is not guarantee that you will as well. Because your rates will depend largely on your driving history and other highly personal factors, you individual rates may be completely different from those of the people who referred you to the insurance provider.
Opt for a Higher Deductible
Once you have found an insurance provider that offers the best rates based on your needs, you can then lower your monthly costs even more by choosing a higher deductible. It is important to realize, however, that opting for a high deductible will mean that you have to pay more out of your own pocket in the event of an accident. If you aren't sure that you will be able to should such an expense, you should instead choose the lower deductible.
Ask for Discounts
There are many steps you can take to find affordable car insurance, but asking your insurance agent about available discounts can help lower your costs even more. Having anti-theft devices and buying policies on multiple cars can reduce your expenses considerably. Paying your insurance up front rather than making monthly payments is another option that may help save money. While not all insurance providers offer this benefit, some provide a percentage discount off of the total costs of your yearly insurance plan. Talk to your insurance agent to learn if this might be a good choice for your needs. |
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