If you drive a car, you need auto insurance. It’s the law.
While it may not be something you want, you have to have it. So the trick is finding a quality auto insurance policy at the cheapest possible cost. When shopping for auto insurance, here are some tips to help you get the best quote.
#1 You Just Have to Shop Around
There is no one “cheapest” or “best” auto insurance company. There are so many factors that affect the cost of your auto insurance policy including:
- The state you live (and even your specific zip code)
- You age
- The model of car
- Your driving record
You may find in one situation you can get the best auto insurance rate from Geico. While in another situation, State Farm or a smaller regional company may have the best rates.
The only way to know for sure which company offers the best, cheapest rates in your area is to get a quote from a number of different auto insurance companies (which is simple to do online!).
#2 Go With a Higher Deductible
The comprehensive and collision coverage on your policy will carry a deductible. The higher your deductible, the lower your monthly auto insurance rates will be.
So if you get in an accident and could shell out $500 or $1000 or more for a deductible, consider a higher amount to save on your policy costs.
#3 Check Your Credit Score
You may be surprised to find out that your credit score is a big factor in what your car insurance rate will be (in most states). In fact, a low credit score can mean you end up paying hundreds more a year in car insurance premiums. So, before you go shopping for insurance, check your credit score and see if there are ways you can improve your credit.
#4 Find Out About All Discounts
Find out what discounts may be available at each auto insurance company you get a quote from. You can save at some by bundling your auto insurance with your home insurance. There may also be discounts available if you insure multiple cars, have a car alarm, pay premiums annually instead of monthly and/or have a clean driving history. Some professional associations also have discounts for members at some auto insurance companies.
#5 Don’t Drive As Much
The more mileage you put on your car, the higher your rates will be. So think about ways you can drive less – ride your bike more, rent a car for long trips, etc. – to help lower your auto insurance rates. Just make sure the mileage you report is accurate. If you don’t it’s fraud and insurance companies don’t take too kindly to that!
#6 Skip the Comprehensive and Collision Coverage
Comprehensive coverage covers you in case your car gets damaged (or stolen) in a situation that doesn’t involve an auto accident. These are things like vandalism, weather damage, or you hit a deer.
Collision coverage covers you in the case of an auto accident or you run into a telephone pole or something.
If your car isn’t worth that much, it may not be worth getting comprehensive or collision coverage. According to a recommendation by Consumer Reports, if the premiums for C&C coverage is more than 10% of what your car is worth, then skip it.
#7 Get the Minimum Medical Coverage Required
You auto insurance policy might provide some coverage for personal injuries and related medical expenses due to an auto accident. However, if you have health care coverage, you may already be covered for this. So if you are covered by your health insurance, only purchase the minimum amount of medical coverage required for your auto insurance policy.