Are you in search of a cheap car insurance policy? Every person wants the appropriate amount of coverage to keep the entire family safe while on the road. They need to adhere to all state regulations while remaining within budget. With the help of the internet, it’s easier than ever to find the best quotes. You can compare policy coverages as well as learn how to avail the most discounts.
Saving money on auto insurance is quite simple. Instead of accepting your current insurance provider’s rates, consider looking into these simple tips to find the best premiums.
1. Decide on your coverage needs
Law requires all drivers to possess some type of auto insurance. Consider what coverage you need. Begin by evaluating the current market price of your vehicle. Check if the cost of the annual insurance is more than the value of your car. If it is, it may not be worth buying that particular type for your automobile.
The basic type of coverage is liability insurance. It’ll cover damage to the other car and injuries to the driver. However, it does not include any expense related to you or your vehicle. This is ideal for low-budget or used cars. But if you are interested in more coverage, you will need to buy collision insurance. And if you own a newer, more expensive model, aim for comprehensive coverage. Though it costs considerably more, your car will be covered for theft, vandalism, animal encounters, fire, weather damage, etc.
2. Compare quotes
There’s an unlimited number of insurance companies when taking into account the local and national market. But how can you find one that offers the best coverage for your money? Compare quotes online from multiple companies. Rates from one place might be better for one person but prove to be more expensive for another. The only way to ensure you’re getting the best deal is to shop around. Be careful though because some policies may appear to be cheaper but may not have the same level of coverage.
3. Not everyone is equal
There is no straightforward solution of who can get the most affordable quote. Several factors go into calculating your premium. Some of the common ones are mentioned below:
- Age: Young drivers between the ages of 16-25 are the most expensive. The price levels get off after 25, considering that the driver has not been involved in an accident or received a ticket.
- Gender: Until recently, women were able to get cheaper insurance quotes. Research has shown that female drivers drive safer and therefore are involved in fewer accidents.
- Driving history: Anyone who proves to be a safe driver, hasn’t been in an accident, or hasn’t received any tickets can guarantee to get a better quote. They have to pay less than someone with a tarnished driving record.
- Type of car: A newer model with expensive parts and the latest tech will require greater coverage. On the other hand, a simpler or older automobile can get a lower quote. Among the top-selling cars, the ones that have the cheapest premiums include Honda CR-V, Subaru Outback and Jeep Cherokee.
- Location: Not surprisingly, people living in an area with more crime will have to pay a higher premium than those residing in a safer neighborhood.
4. How much excess can you pay?
When you take out car insurance, you have to decide on an excess. This is the amount of money you need to pay before the insurance company picks up the remaining bill. You can get a better rate if you are willing to pay more excess. However, always choose an amount that you can realistically afford. And if you’re not at fault in an accident, the excess can be recovered later.
5. Maintain a good credit score
Insurance companies often look into credit scores before outlining the terms of any contract. It is based on factors like repayment history and outstanding debts. Anyone with a stronger credit score can expect to get more affordable rates. An easy way to do this is to pay bills on time and clear up any debt you may have.
6. Ask about discounts
Auto insurance providers offer various discounts. Inquire about any that you might be able to avail, such as
- Young drivers with good grades
- Members of particular professional organizations or affiliated groups, such as military personnel or those offered by your current employer
- People who buy multiple insurance policies, such as auto, home, or medical insurance, from the same provider
- Insurance for multiple cars under one policy
- Drivers with a clean record
- Upfront payment of the entire annual or six-month premium
- Owning a vehicle with anti-theft or safety features
7. Think about who you add
Mention only regular drivers on the policy. Adding a young, inexperienced driver can skyrocket your premium. Even if you do, make sure to name yourself as the main driver.
8. Ask about changes to a policy
Before you decide to sell any car, check with your insurance provider. Know if there is a fee for mid-policy changes in either the vehicle, registration number, or home address. Some can charge from £25 to £50.
If you decide to upgrade your set of wheels, check with your insurer if the model and make will significantly affect the premium. For example, the premium on a new sports car will cost more than an older family sedan. Remember that a more modern automobile fitted with security features such as an immobilizer or tracking device can avail a discount of about 5%. So before you settle on a purchase, consider the cost of insurance as well as the price of the car.
9. Consider a telematics policy
If you’re a safe driver who doesn’t drive that much, this may be an affordable program. The insurance provider will need to track your driving with the help of a black box in exchange for a discounted premium. Also known as telematics, they monitor how much you drive, your speed, when you drive, and how well you drive. Once you start proving that you are a safe driver, you can expect the premiums to come down substantially.
On average, a middle-aged person who reduces annual mileage by 5,000 miles can save £50 while 10,000 miles could save more than £100.
Once you’ve found an affordable auto insurance plan that meets your requirements and budget, you can proceed with the paperwork. But before you begin, be careful to check whether the company is licensed, the number of years it’s been in business and the customer reviews. Remember to get multiple quotes. The car insurance market is competitive, so don’t be afraid to bargain. It’s one sure way to get a better deal.