Car insurance is a necessity. However, paying a price without fully understanding the type of coverage which best suits your needs can often leave customers unnecessarily out of pocket. While it can be tempting to just pay a company to alleviate the hassle of reading through documents and insurance-jargon, a little research may save you many dollars.
Thinking, how you can save money, rather than “why compare car insurance quotes?” is the best place to start.
Always shop around
Regardless of the eye-catching adverts and carefully worded promises, what may be a cheap company to use for you could end up costing someone else. For example, there are motor insurance companies who specialize in particular areas which might benefit someone in one part of the country, but end up costing another customer with a similar profile in another state.
By shopping around, you can compare different types of cover and figure out if cheaper premiums make up for cover you could have perhaps paid a few dollars extra for somewhere else. Think of what you need and figure out what really matters to you. By comparing different companies, you may be surprised.
Always ask how your vehicle, garage or family can get you discounts
There are many ways motorists can avail of lower prices and significantly save dollars. As motor insurance is worked out on the risk you represent to the company, aspects such as age, occupation, and where you live will determine the cost of a company underwriting a policy for you.
When approaching a motor company for a quote, always ensure you check if they have discounts or price decreases based on areas such as:
- Discounts for no claims or having an excellent record as a driver
- A discount for taking home insurance or other types of insurance with the same provider
- Keeping your vehicle locked in a garage or having gates/anti-theft alarms
- Multiple-car policies or family policies
- Paying your premium in one lump sum
Making queries and reading through policy information will give you a better grasp at potential entitlements which will benefit you in the long term.
Keep your credit record clean
As motor insurance quotes are also based on your credit score, it is important to maintain credit payments. By keeping your history of payments clean, you will, for the majority, save money.
Drivers with poor credit can potentially pay almost $2,000 dollars extra for premiums as a result of insurance companies questioning their probability in making a claim.
When purchasing a new vehicle, factor in the insurance costs
One of the most underrated but obvious points of getting a good deal on your car insurance is to consider if the vehicle you are purchasing is compatible with the manageable costs of keeping it ensured. There are many vehicles which might look good, but come with heavy loading on premiums, depending on a wide range of factors.
Run a few checks with comparison websites to see if that dream car will turn into a nightmare once you are trying to get insurance for it.