Auto insurance coverage may seem to be an unnecessary expense.
However, it may come in handy to protect your finances in the event of property damage, bodily injury, car theft or even natural disasters.
Generally, auto insurance coverage is an expensive venture.
- 1 Ways to find a cheap competitive auto insurance policy
- 1.1 Compare quotes on an auto insurance website
- 1.2 Get to know the factors that can affect your premium
- 1.3 Look at the liability coverage provided
- 1.4 Raise your deductibles
- 1.5 For an older vehicle, you can opt-out of comprehensive and collision coverage
- 1.6 Claim discounts
- 1.7 General ratings
- 1.8 Comprehensive look at the insurance offers
- 2 Conclusion
This does not mean that you have to break your bank to pay for the premiums.
There are many cheap competitive auto insurance companies that are reliable in the market.
Similar to any other industry, competition is part and parcel of the auto insurance company.
The upside to this healthy competition in the industry is cheaper offers of the auto insurance policy.
Most insurance companies offer varying policy rates but with similar coverage.
This makes consumers conflicted when it comes to selecting an auto insurance company to work with.
Most target consumers will opt for the cheaper option in which cheap competitive auto insurance policies have the upper hand.
Most competitive auto insurance companies try to lower their prices or even come up with amazing offers to attract their consumers and increase their customer base.
Competition terms are, however, regulated in the interest of insurance providers.
Ways to find a cheap competitive auto insurance policy
Compare quotes on an auto insurance website
If you want to shop for cheap quality auto insurance, you will have to compare the quotes from their website.
Explore all your options and not only focus on the big insurance companies but also the small companies that could also have juicy offers.
Alternatively, you can seek the services of an agent.
A car insurance agent can guide you through which company has the best deals currently.
Get to know the factors that can affect your premium
Most insurance companies take a keen interest in your driving record to determine the insurance quote you get.
However, it is not the only consideration.
Other companies also consider other risks involved by insuring you.
These factors include;
- Driving history– if you have a clean driving record, it is probable you will get a lower premium and a discount.
- Personal information like your credit-While some states consider the use of credit-based insurance scores; other states have disregarded the same. The credit score is important in calculating your premiums.
- The make and year of your car – For those with expensive cars, the rates will most likely be higher. Moreover, some companies also consider if your car model tends to have more liability, theft rate and cost of repairs.
- Number of miles monthly- The number of miles you travel has a great impact on the rates you receive.
- Marital status and age – Study shows that the probability of an accident can be dependent on these factors as well.
- Area you live in – Some areas have a higher rate than others. Other areas too are prone to accidents than others, and these can influence the kind of rates you receive.
Look at the liability coverage provided
Normally, there are three kinds of liability; bodily injury, property damage, and third-party liability.
Every insurance company has a limited number of coverage, but you can opt to have more coverage.
If you have higher coverage, you’ll have higher rates.
As you choose your minimum coverage requirement, take into account all your assets.
In the event of an accident, if your property and medical costs are more than your coverage limits, the costs may extend to your assets, thus affecting your lifestyle.
Raise your deductibles
A deductible refers to an amount you pay for your pocket to cater for the cost of an auto insurance claim.
Raising your deductible may lower your monthly premiums.
However, it is important to consider your financial capabilities; there is no need to subject yourself to financial strains if the deductible is high.
For an older vehicle, you can opt-out of comprehensive and collision coverage
Collision coverage offers coverage in case of an accident while comprehensive coverage offers protection in case of car theft or damages caused by non-collision.
These coverages are optional unless you lease or finance the car.
For an old car, you can get a cheaper rate for comprehensive and collision or opt-out of the two coverage altogether.
Weigh the value of your car and the premium costs of the insurance to determine the best option for you.
Some insurers offer discounts based on a clean driving record, the existence of the anti-theft devices, group membership and many others.
Some of the groups that may be eligible for a discount include;
- Military personnel
- Drivers with a clean driving record. This applies to a driver who has been on the road for a number of years with no accident.
- Drivers who have pursued a driver’s education course or defensive driving.
- If your vehicle has features such as airbag, antilock brakes, anti-theft system and day time running lights; they have a better advantage in acquiring discounts.
- Active or retired state employees
- Drivers insuring multiple vehicles with the same insurer.
- If the driver has other insurance coverage such as renter’s insurance with the same insurer.
- Drivers who pay their yearly premium at one go.
The general opinion of third parties is also key to determine the suitability of the policy.
Before purchasing the policy, consider the third-party ratings as they reflect on the efficiency of the services offered by the insurance provider.
Comprehensive look at the insurance offers
Everyone loves the cheapest option; after all, you can save money and use it on something else.
The same applies to insurance coverage.
Nevertheless, that should not be the only considerable factor, instead, take a look at the coverage comprehensively.
Some insurance providers will give you a hard time when it comes to seeking for a claim.
Go for the insurance provider that is efficient and quick in the event you would need to make a claim.
The future is unpredictable; the cost of vehicles increases every year and litigation has become a norm in the society.
The costs of the premiums should never be an excuse as you can secure yourself an affordable auto insurance policy.