Whether you get cheap car insurance or overpriced car insurance depends on many factors; many of which are unknown to the average American. Everyone wants cheap insurance, but most people don’t make the effort to find out how to get it. Here are some ways you can lower your insurance premiums, and some things about car insurance to keep in mind when selecting a policy.
1. Type of car: Your insurance costs will depend on the type of car you are buying. You will want to find out before you buy your new car how much the insurance will be. Is it higher than the insurance for similar cars? Consider being flexible to get cheap insurance. Go with a less flashy model and save money.
2. Discounts: Get cheap insurance by taking advantage of discounts. Available discounts may range from discounts for anti-theft devices on your car, to discounts for senior citizens. Find out about discounts for cars with safety features like anti-lock brakes or airbags, or anti-theft devices such as a car alarm. You also may be able to get a discount, if you have more than one car insured with the same company. One of the best ways to get a discount: stop smoking. Save your lungs and your wallet at the same time. Many companies provide discounts for nonsmokers.
3. Don’t pay for what you don’t need: If your car is worth less than $2000, you’ll want to ditch your collision and comprehensive coverage. It’s most likely not worth what you’re paying for it. Also, don’t pay for low premiums. Policies with low premiums are the opposite of cheap car insurance. While you may enjoy the added security of knowing you will pay less before the insurance company has to pitch in, getting lower premiums is generally not very cost-effective.
4. Join an auto club to get cheap insurance: Members usually get lower insurance prices, and also may get benefits like free towing, when necessary. Joining an auto club usually costs the same or less as it costs to pay for towing coverage.
5. Keep car insurance in mind when you move: Where you live can really affect whether you get cheap insurance. Inside a big city there will usually be more traffic and accidents, so living ten minutes away in the suburbs is more likely to get you cheaper insurance. But insurers don’t determine whether to give you better insurance rates based only on how much traffic and accidents your area has. If your home has a garage you can keep your car in, it will help give you cheap insurance because of the reduced risk of theft and damage to your car. A long commute to work will probably raise your insurance because of the increased miles you’re putting on the car.
There’s no good reason to pay more than you have to. Get cheap insurance. You should compare your insurance options by spending a few minutes on the Internet to get quotes from various lenders, so you can choose your best option for cheap car insurance.
By Riannon Cutler