Finding cheaper auto insurance is one of the quickest, easiest ways to save money month after month. That holds true whether you are insuring a newly bought car or looking to switch to a different insurer. Working with a reliable car insurance agent is an essential step towards getting a car insurance policy that suits both your needs and budget.
But how can you effectively cut through the plethora of options and find the lowest cost quality car insurance that fits your needs?
Here are 4 key tips to keep in mind when shopping for car insurance in today’s marketplace:
#1 Use a Price Comparison Tool
It is true that half of U.S. auto insurance is sold by only four “big name” companies, with State Farm most dominant at an 18% market share. But it is also true that many state and regional insurers best their national rivals within their own “back yard.”
And there are specialized car insurance companies like USAA for military families and Farmers for certain professionals who qualify for “affinity discounts.”
The point is you need to shop around and compare prices and packages to get a true bearing on where you can save the most. One highly convenient way to do this is via an online tool like Car Insurance Comparison that makes it fast and easy to find low cost auto insurance.
#2 Look For Special Discounts
Remember that car insurance rates vary greatly from person to person based on a variety of factors. You cannot simply go by some company’s claim to have “the” lowest rates. Different insurers will offer cheaper insurance based on your specific situation.
Common discounts to look for in this regard include:
- Bundle-up discounts for buying multiple types of policies or insuring multiple vehicles.
- Lower rates based on having a clean driving record.
- Pay 3, 6, or 12 months at a time instead of monthly and save.
- Go “paperless” and enjoy a slightly cheaper premium.
- Discounts based on your car having anti-theft devices, anti-lock brakes, air bags, daytime running lights, and other safety features.
- Get off for owning a newer, lower mileage, or “greener” automobile.
- Discounts for being a student with high grades, a homeowner, or a member of the U.S. Armed Forces.
- Many companies also give you a break for long-term customer loyalty of for switching to them “early,” meaning so many days before your old policy expires.
#3 Shop for a Cheaply Insured Car
Another wise move, if you are looking for a car as well as insurance to go with it, is to shop for a vehicle that qualifies for low rates. The fact is you can often save as much on lower insurance rates than on better gas mileage, so why pay attention to the latter but not the former when on the hunt for a new vehicle?
Ask potential insurers how much a specific make and model will cost to cover ahead of time. Ask what difference color, age, and odometer readings will make. You might be surprised how much you could save.
#4 Choose Your Policy Type Wisely
Minimum liability coverage is clearly the cheapest option, but you may be worried about a potential accident and be pulled toward comprehensive.
But consider the situation before selecting a plan. An older vehicle may not be worth insuring with comprehensive. And a higher deductible may well pay off in the long run if you have few accidents. Discuss with an automobile insurance agent your insurance needs to help you find a suitable policy.
If you drive less than 10,000 miles per year, a usage-based plan (only offered by certain insurers) could save you a bundle if you are comfortable with your insurer tracking your miles electronically.
