Car insurance is a necessary aspect of owning and driving a car. But that does not mean that you should expect to pay high rates for good coverage. The truth is that there are a variety of car insurance options, as well as the opportunity to lower a current rate. Here is a few different thing to keep in mind whether you’re just starting out or hoping to negotiate a brand new rate.
Whatever you do, don’t settle on the first car insurance rate you are given. Different insurance companies might be able to offer you different rates. Try to get at least three different quotes before you decide. This can feel a bit time consuming, but the effort is worth saving money in the long run. One reason why different insurance companies have different rates is that they use a different process. Some rely on independent insurance agents, others have their own, and some sell directly and don’t use agents at all. Switching car insurance policies is always an option, and sometimes it’s a viable one.
Request Higher Deductibles
When you are negotiating a car insurance rate it is always possible to request higher deductibles. This means that your monthly rate will go down, while the cost of repairs will go up. This is, of course, a plan that only makes sense when you anticipate having a clean driving record. If you go with this choice, be sure and set aside some money in case of emergency down the line.
Drop Your Collision Coverage
This might not be a good idea on a new car, but if you are driving an older car you might consider dropping your collision coverage. The reason for this is that the car might not be worth very much. Or at least not as much as it would be if it was a new car. You might end up paying more than it’s worth when it would be cheaper just to replace a totaled car in the event of an accident. If a car is worth less than ten times your premium, you might be able to do without. Be sure and find an accurate assessment of how much your car is worth before making any moves.
Ask For Discounts
There might be a variety of discounts available to you with the insurance provider you already have. People who drive minimally in the year might be eligible for low mileage discounts. You might also be eligible for discounts based on your driving record. Some insurance companies offer discounts for people who have stayed clear of accidents and moving violations, as well as people who have good credit. Long time customers are sometimes rewarded in an effort to retain their loyalty, so that is something else to consider when you are getting insurance. Additionally, some alumni groups and business offer group deals. Always consider any circumstances like those that could potentially lead to your getting a better deal on car insurance.