Cheap Car Insurance that also provides sufficient coverage might sound like the stuff of dreams. But it isn’t! We propose that you choose a reputable car insurance provider first. Once that is done, you can enjoy discounted rates with the help of tips we mention below:
Don’t think big; think small!
The following four companies are controlling almost 50% of our nation’s auto insurance business:
4. State Farm
While most drivers have heard of these giants, they tend to ignore the smaller, regional insurers. Most of the time, the latter are working much harder to maintain their high rates of customer satisfaction. Often they have lower rates to offer to their customers too.
Comparison shopping is the name of the game!
It used to be hard to compare all the options when it came to shopping for most things. You’d make a purchase only to find out that you overpaid! This isn’t that time, and it has become immensely easy to compare the rates offered by different car insurance agents.
So, where to begin. How about you start by comparison shopping? You have a lot of options available to you. There are agencies that provide service only in your part of the country. Then there are others who are only present online. Whatever the case, get in touch with as many as you can, and write down their prices. Compare the names on the list to find out who offers the cheapest car insurance within your area!
Although, that isn’t where you should stop. Don’t place your – and anybody else riding with you – life at risk by just picking out the cheapest providers! Instead, ask your friends and family members what they know about the insurers you have shortlisted. NerdWallet’s recent study showed there was a difference of more $850 between the price insurance agents quoted on average and the actual lowest rates!
Review after every six months!
Most customers don’t notice it when their car insurance provider raises their rates. That’s because the disreputable companies do so slowly! They will wait for a customer to get comfortable with them before hiking the prices.
What can you do? Start calling your insurance company when it is time for you to renew your policy. If you miss that date, just do your best to get in touch with them after every six months. Review the coverage you are getting and whether you need it. This will ensure that you get the cheapest car insurance possible. Once an insurance company realizes you have caught on, it is likely they won’t repeat it – after all, they won’t want to lose you to a competitor!
Get the coverage you actually need!
When a potential insurance agency sends in their quote, read the types of coverages included in it carefully. You might not need some of those, and it is okay for you to drop them completely. After all, you will have to pay more with those coverages currently on your policy. Nothing matches how much you stand to save if you decline paying for comprehensive and/or collision coverage. For drivers, whose cars aren’t worth more than a few thousand dollars, why waste all that money on those coverages? Similarly, if your car is paid off, then you can consider dropping these two coverage types, as well.
Another way of increasing the savings is through lowered liability limits.
Don’t buy it all!
Many insurance companies spend considerable money to make ads that promote the notion that they are the cheapest option out there. Don’t fall for it without proof! So, they say they have super-low insurance rates but are they doing that for every driving customer of theirs?
Matching your rates with someone getting the same coverage and in a situation similar to yours could disabuse of that notion! There is a reason why even the rates offered by the same insurance company can differ between two drivers. Said company also takes the following into account:
• Where each driver is located
• Their driving track record
• The type of vehicle each driver owns
Finally, remember never to feel embarrassed about asking questions. That is the best way of finding out all you need to know about your car insurance provider. An insurance agency worth its salt wouldn’t brush off those questions of yours!