Car insurance is an essential service, but that doesn’t have to be costly. There are various steps you can take to reduce your rates.
Personal finance expert Dave Ramsey recommends getting quotes frequently to ensure you are paying the lowest cost possible for auto coverage. In addition, he suggests taking steps such as joining groups that offer discounts, paying in advance, and making payments over six or twelve months to save money on premiums.
Also read: How is pain and suffering calculated in a car accident?
Get a Quote
Car insurance quotes can help drivers find the ideal policy to suit their needs. To get an accurate car insurance quote, it’s best to visit multiple insurers and compare rates for similar coverage; including liability limits, deductibles and discounts. Also important when receiving quotes: making sure all information provided during the quote process is correct such as vehicle identification number (VIN), accidents history as well as tickets/suspension information provided is correct and up-to-date.
Considerations when obtaining car insurance quotes include your age, gender, driving history and credit score as well as your car type and coverage levels of choice (full coverage typically costs more than minimum liability insurance). A Forbes Advisor survey discovered that many drivers do not like that companies use credit scores as the basis of premium calculations – for this reason you may wish to request three to five quotes prior to selecting one policy.
Look for Discounts
Policygenius discovered that most carriers offer discounts that can help lower premiums. Policygenius discovered that every insurer reviewed by Policygenius offered safe driver and claim-free discounts (commonly known as good driving discounts), though drivers must remain accident and ticket free for an agreed-upon time frame to qualify for them.
Some insurance companies provide discounts to drivers who complete an accident prevention or driver safety course, and others provide low mileage discounts that reward drivers who drive less miles than the national average on their vehicle.
Many insurers provide bundling discounts, which can save a substantial amount when combined with auto, home or life policies from one carrier. Some also provide eco-friendly hybrid or electric vehicle drivers discounts as well. Additional opportunities exist such as loyalty discounts or paperless or pay-in-full discounts which could reduce costs by 10% or more.
Drive Safely
Purchase of your first car can be both exciting and daunting; among the new responsibilities is finding appropriate auto insurance at a price point within your budget. Luckily, there are multiple steps available to save money on car insurance: receiving quotes, enrolling in driver education courses, driving safely etc.
To receive an accurate quote, it’s essential that all pertinent details regarding yourself and any drivers on the policy are collected. This includes your car’s year, make, model and VIN as well as an estimate of annual driving mileage.
Before choosing car insurance, it’s a wise idea to compare quotes as different insurers have different criteria for setting rates. Finally, pay all at once to save interest charges. Finally, keep in mind that car insurance should not be seen as an extravagance but as necessary financial protection against accidents or theft.
Maintain a Good Driving Record
Not only is maintaining a spotless driving record a source of pride and savings, it can actually save money. Insurance companies use drivers’ MVR reports – also referred to as motor vehicle reports (MVR) – to assess risk and set premiums accordingly. While minor violations such as one speeding ticket might not affect rates significantly, other insurers might raise rates in response to major offenses like DUI or serious accidents; should an insurer consider someone too high risk, they’ll typically connect that individual with nonstandard or assigned risk policies tailored specifically tailored towards them based on MVR reports.
Your Motor Vehicle Record can be obtained from your state DMV online, via mail or in person. Reviewing it periodically before renewing any policies or signing new ones is always wise; mistakes do happen and can be challenged on your record; conversely you could also inquire with insurer about taking defensive driving courses to reduce points or have violations erased completely from your record.
