Mandatory insurance in the United States has created a highly competitive market among car insurance companies. Many small state and regional companies have entered the market to offer mandatory minimum limits coverage at low prices. A married driver between the ages of 25 and 65 with a good driving record should get the best deals on car insurance.
The cost of owning a car can be rather large. Gas, maintenance, registration and insurance fees can all add up to make your vehicle a very expensive proposition. You can lessen your overall costs however, by finding ways to get cheap auto insurance rates. Getting cheap car insurance doesn’t have to be tough, even if it can sometimes seem like a minefield full of options and providers. Below are many clever suggestions for your benefit.
Bundling Insurance Policies
Most auto insurance companies offer customer loyalty or bundling discounts to drivers who have other insurance policies, like home and life, with their company. These discounts can be as much as 25% on each policy, so check with current insurers for bundling discounts. Even if the cost of the auto policy is the same or slightly more than with another insurance carrier, the combined savings on all the policies may make the actual cost cheaper than buying the car insurance separately.
Have More than One Car?
If you have more than one vehicle in your arsenal, then you could reduce your insurance rates by insuring multiple vehicles at the same time. Many insurance companies will offer these multiple-vehicle savings packages, but it is up to you to check with the company. Do not expect them to offer it to you without you asking.
Be Smart with Coverage
It is really important not to underinsure yourself as a motorist, but over-insurance should be avoided – by students especially. In order to get car insurance that’s really cheap, students need to identify exactly what level of coverage it is that they need. As students typically have low incomes and low numbers of assets, they will usually not be charged nearly as much for car insurance. Check out the laws in your state with regard to minimum coverage, but be intelligent and ensure that you aren’t scrimping just to save money.
Understanding Coverage
Property damage liability, bodily injury liability, crash cover, uninsured motorist protection, the list goes on and on. When you are trying to select a plan that’s a good fit for you, be certain to fully comprehend the policy, and how the terms of the policy will relate to the cost. Some states have specific rules about coverage, and what is needed. In these states, other forms of coverage – like uninsured motorist protection, can be taken on at the discretion of the motorist.
Know What You Need
When submitting an application for an insurance policy, one of the most important details you’ll include is the overall value of your car or truck. If your car is cheap and cost-effective to repair and maintain, you don’t need high-end insurance. However, if you own a valuable car, you’ll need to consider getting a fairly comprehensive policy. Ask your insurance provider for advice, and always bear in mind that insurance covers the vehicle, but also costs associated with medical care, lost wages, and other damage.
Maintain a Clean Driving Record
Those looking for cheap car insurance should maintain a clean driving record free from moving violations and chargable accidents. Insurance premiums can only be raised if a driver was at fault for an accident. If an insurer raises rates citing an accident, the driver may challenge the rate increase by providing a police report showing the other driver was at fault or by showing proof his or her damages were paid by the other driver’s insurance company.
Choosing the Right Car
Insurance rates are based on many factors including the type of car on the policy. In 2010 and 2011 the least expensive cars to insure were minivans, crossovers and SUVs. These vehicles are considered family cars and traditionally family cars have been the least expensive to insure. Luxury cars and sports models have much higher premium rates than mid priced family vehicles with good safety features like anti-lock brakes and airbags. The best way to get discounted auto insurance is to drive an older car. Older cars are inexpensive to repair, less likely to be stolen, and less likely to be financed. Financing requires additional coverage, like collision and comprehensive. Luxury cars like Cadillacs are very expensive to repair and sports cars are viewed as more accident prone.
Add Some Protection
Another good way to locate cheap auto insurance rates is to take steps to protect your vehicle. Insurance companies view cars with protection devices as a less risk to theft. This means that they can typically offer you lower rates on this aspect of the insurance plan. Protection devices can include automated car alarms, anti-theft devices installed in the electronics, special keypads and laser keys. Either purchasing a car with these devices pre-installed or adding them yourself can reduce your rates. Please read more on this topic in the end of this article.
Go for the Yearly Policy
Many car insurance policies can last for a period of six months. This means that the rate quoted to you six months ago could change. Getting yourself a yearly policy will most likely mean cheap car insurance rates because these rates cannot change for at least 12 months. Some companies also offer a discount for purchasing a longer policy.
Get Your Payments Automatically Deducted
Automated payments make life easier for the insurance company. They have less paperwork to file and they will receive less late payments. Because of this, many car insurance companies will offer you a discount on rates if you pay them in automatically. Automated payments also make your life easier because you are less likely to miss a payment or pay beyond the monthly deadline and receive a fine or damage your credit.
Raising Deductibles
Collision and comprehensive insurance coverages are expensive so to find cheap car insurance drivers should consider raising the amount of their deductibles. Higher deductibles mean lower insurance rates, but the driver is responsible for more of the damages to his or her car if it is involved in an accident. On older model cars worth less than $2500, it may be wise to drop collision and comprehensive coverage and bank the savings toward another vehicle.
Mileage could be Key
With many car insurance companies, the key to locating cheap car insurance rates could rest in your daily mileage. If you are able to keep your daily or monthly mileage numbers down, then you may be able to grab some real savings. This because the less you drive your vehicle the less likely you are to be involved in an accident. Double checking your daily mileage or finding ways to reduce your mileage could help you to save money on insurance.
Defensive Driving Courses
In some states, insurance companies are required to offer a discount of up to 10% for three years on policies for drivers who have completed a defensive driving course. Even where the discount is not mandated by the state, many insurance companies offer it voluntarily. Defensive driving courses take about 8 hours, cost as little as $30 and are available online. Drivers can continue receiving the discount if they repeat the defensive driving course every three years. Please remember that if the quote questionnaire does not ask if the driver has participated in a defensive driving course, the discount, will not be included in the initial quote.
Membership Discounts
Consumers who are members of trade unions, auto clubs or other organizations or associations may be eligible for discounts through their membership. These organizations negotiate with auto insurers to provide discounted rates to their members. The amount of the discount varies and the member rate may not be the cheapest auto insurance available so it is a good idea to compare the rates with other auto insurers before buying an auto policy. Both AARP and AAA offer membership discounts on auto insurance.
Take Advantage of Discounts
Several companies tend to provide discounts to motorists falling under a certain category, or provide discounts season-to- season. Discounts are available for drivers who have proven to be safe on the roads, have taken part of defensive driving courses, are part of a motorist club or simply have good grades at school. Auto insurance quotes do not necessarily include all the discounts for which a driver may be eligible. When shopping around, call the companies directly to ask about possible discounts that you might be eligible for. Other companies offer discounts and incentives to drivers who renew their policies so consumers should ask about discounts before changing companies. Good student discounts for teenagers and good driver discounts can also reduce costs.
Incentives
Some insurance companies offer special rates to new policyholders which may be lower then the rates they are currently paying. Others include incentives in their policies like accident forgiveness which can save up to 20% on premiums for drivers who have an accident during the policy term. One company offers a deductible which is lowered by $100 every year that the policyholder is accident free. Individuals should consider the values of incentives along with auto insurance quotes.
Shop Around
This is a really important way of ensuring that you get cheap car insurance. There will tend to be a number of different insurance providers, calculating premiums in different ways. Try to find the most competitive quote available, and once you do, make calls back to different brokers to really see the best possible price they can offer you. Do your homework!
Our site provides multiple quotes from different insurance companies for comparison purposes. You can use the form on the top of this page to get free car insurance quotes. Drivers should check the reputation and financial stability of an insurer before purchasing a policy to ensure they will receive value for their money. Not all insurance companies provide the same level of customer service and for some consumers slightly higher costs may be worthwhile. And remember, when searching for discounted auto insurance, it’s important to remember that if it seems like the price is too good to be true then it probably is.
Best vehicle modifications to get cheap car insurance
Vehicle modifications, or anything that makes a vehicle differ from the basic specifications of the factory model, are popular among many drivers. No matter what the modification, it almost always has an impact on auto insurance premiums. The good news is that many modifications can be a good way to achieve cheaper auto insurance.
Alarm Systems
One of the best – and easiest – ways to lower your auto insurance with a modification is by adding anti-theft devices to your vehicle. These modifications come in many different types and must be Thatcham approved, meaning they’ve been rated by the Thatcham rating system, scoring the security of your vehicle on a five-star scale. One of the most popular anti-theft devices is adding an extra car alarm to deter theft. Ecarsecurity.com offers a variety of alarms in all price ranges, with systems that include features like keyless entry and engine start.
Back Up Cameras
Adding a back up camera, or a camera that shows a view of the back of your car, can also lower your insurance rates. Back up cameras make it easier and safer to drive while in reverse, especially when backing in or out of a parking space. This can be an indispensible feature when considering the time, stress, and money it will save by alerting drivers when they are about to hit another car. Stopbackupaccidents.com has a wide variety of these cameras, priced as cheaply as $229.99.
GPS Tracking Devices
In the event your car is stolen, installing a GPS tracking device can help locate it and have your car returned to you more quickly. Adding one of these devices to your vehicle can be cause for cheaper auto insurance as it will lower insurance payouts your provider may have to make later if your vehicle is stolen. Brickhousesecurity.com offers a wide range of GPS tracking devices in all price ranges, from the Spark Nano 2.0 Real- Time GPS Tracker priced at only $199.95 or the more sophisticated Livewire FastTrac Covert GPS priced at $699.90.
Anti-Lock Brakes
If your vehicle does not come with anti-lock brakes, adding them is another way to get cheaper auto insurance as it reduces the risk of accidents where you may rear-end or collide with another driver, especially in a situation where weather may cause roads to be wet and slippery. Advanceautoparts.com offers anti-lock brakes for many different brands of vehicles, and with their many locations all over America, consumers don’t have to drive far.
When planning to modify your vehicle, remember that you are legally responsible to report all modifications to your insurance provider. In many cases, you will be glad you did as it may be a benefit, often leading to cheaper auto insurance rates than the ones you’re paying already. These vehicle modifications not only lower your insurance rates but also add safety and peace of mind that you may not be able to find with the factory model of your vehicle.