Buying Car Insurance is an important investment in any individuals’ future and therefore should be treated like one. Here are some ways to make a car insurance purchase a more productive experience.
Insuring A New Or Old Car?
Before purchasing a new car, it really makes sense to know what the cost of the car insurance will be before the purchase is made. In fact, this may even be a deciding factor in what kind of car is ultimately purchased.
Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. So It is good to have this information before a new car purchase, as it might influence the decision as to the kind of car will be purchased, or the extras that may be included.
If insuring an older car, it’s vital to consider how much collision and/or comprehensive coverages wanted on the car. If the car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can properly asses the value of the vehicle, or it’s possible to look it up online at Kelley’s Blue Book.
Always Shop Around For Car Insurance.
Like any other business, insurance companies are competing for the business of consumers. Therefore, prices will vary from company to company. It’s advised to get at least three to four price quotes before arriving at a purchase decision. It can also be beneficial to call companies directly or access information on the Internet. State insurance departments may also provide comparisons of prices charged by major insurers.
Get Quotes From Different Types Of Insurance Companies.
Some insurance companies sell through their own agents and have the same name as the insurance company. Some car insurance companies sell through independent agents who offer policies from several insurance companies. Still others do not use agents at all, and sell directly to consumers over the phone or via the Internet.
Ask Friends & Family About Their Insurance Company
It’s advised to solicit friends, relatives or co-workers for recommendations on a car insurance company. They will no doubt be willing to share their experiences both good and bad if they have had an accident. How did the company respond? Did the insurance adjuster arrive promptly? Was the company there for them when they needed it most, or did they have to wait for the company to get things back to normal.
It can be a good idea to contact the state insurance department to find out whether they provide information on consumer complaints by company.
Keeping Costs At A Minimum.
When the vehicle to be insured, and the company which will insure it is decided, consider these options for keeping monthly premium costs down.
Deductibles are paid before the insurance policy kicks in should an accident occur. With a higher deductible, it’s possible to lower the monthly premiums significantly.
For example, if the car insurance deductible is increased from $200 to $500 it might reduce collision and comprehensive coverage costs by 15 to 30 percent. Going to a higher deductible would even save more. When comparison shopping for an insurance company, be sure to include this question when looking for the best rates.
In many situations, combining different kinds of insurances with the same provider yields better rates. Many insurers will give breaks for multiple forms of insurance coverage. There are also reductions in premiums if more than one vehicle is insured with the same company. However, as logical as it may seem, it is not always the case. So again, ask.
Depending on how and how often a vehicle is used, insurance rates can vary significantly. If a vehicle is not used in a major metropolitan area, or is only used for recreational purposes, low mileage discounts may apply. Such discounts may also be provided to individuals who carpool to work.
Many employers offer a Group Insurance Plan, and is something that should be inquired about. Many professional organizations also have group plan options. Similar to searching for a car insurance company, it makes sense to inquire with any organization with affiliation, to see if special programs are available.
Other things to either ask about or include in conversations with potential insurers include possible premium discounts for:
- A driving record without any accidents or moving violations.
- Attending a driver education course.
- Being a non-drinker.
- Having a solid credit score.
- Being a good student.