Looking for a comprehensive auto insurance in the brand new year of 2010 ? Below is a list that you may find useful when hunting for a good car insurance deal.
The price you pay for your car insurance varies depending on your driving record, the type of car you have and the insurance company you buy your auto insurance policy from.
Here is a list of things you may like to do to save you some money.
Look Around and Request for Car Insurance Quotes
Get at least three auto insurance quotes. You can call companies directly or access information on the Internet.
Get quotes from different types of insurance companies. Some sell through their own agents whilst others sell through independent agents who offer policies from several insurance companies. Other companies, on the hand, sell directly to consumers over the phone or via the Internet. The price varies depending on the sales method used.
However, do not shop by price alone. You want a reputable company that answers your questions and handles car insurance claims fairly and efficiently, and is reliable.
Sources for finding the right kind of company include : word of mouth from family, friends and associates, as well as your state insurance department, where you can find consumer complaint ratios by company.
You can also check the financial health of car insurance companies through independent rating companies.
Compare Auto Insurance Costs Before You Purchase a Vehicle
Your insurance premium is based in part on the vehicle's listed 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, such as air bags, daytime running lights, anti-theft devices, anti-lock brakes etc.
Note that expensive cars that are favourite targets for thieves cost more to insure.
Ask for a Higher Deductable
Your deductible is the amount of money you pay out-of-pocket before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially.
For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage premium by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more.
However, keep in mind that you'll need to have the amount of the deductible on hand should something happen to your vehicle.
Buy your Auto and Homeowners Insurance Coverage from the Same Insurer
Many insurers will give you a discount if you buy two or more types of insurance from them.
Also, you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce insurance premiums for long-time customers.
However, do your maths and shop around carefully; you may still be able to save more money buying from a different insurance company even with the multi-policy discount.
Reduce Auto Insurance Coverage in Older Cars
Consider dropping collision and/or comprehensive coverage on older cars.
It may not be cost-effective to continue insuring cars worth less than 10 times the amount you would pay for coverage. Any car insurance claim payment you receive would not substantially exceed your premiums minus the deductible. Claims occur on average only once every 11 or 12 years.
Auto insurance dealers and banks can tell you the worth of a car, or you can look it up online at Kelley Blue Book.
Ask about Group Insurance when looking for Car Insurance Policies
You may be eligible to get insurance through a group plan from your employer, or through professional, business and alumni groups or other associations. Group plans often provide substantial discounts on insurance.
Ask your employer, or any groups or clubs of which you are a member, about this option.
Maintain Good Credit May Lower Your Car Insurance Premium
Your credit rating may affect what you pay for insurance, so monitor it carefully.
You can get this information directly from the three major credit-rating agencies (Trans Union, Equifax and Experian). There are also various Web sites that allow you to check your credit rating and provide tips on how to improve your score.
Low-Mileage Discounts On Your Auto Insurance
Some companies offer discounts to motorists who drive a lower than average number of miles per year.
Low mileage discounts can also apply to drivers who car-pool to work.
Seek out Safe Driver Discounts when Applying for Car Insurance
Most insurance companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years.
You may also qualify for a cut if you have recently taken a defensive driving course, if you are over 50 and retired, or if there is a young driver on the policy who is a good student, has taken a drivers education course or is away at a college, generally at least 100 miles away.
When you comparison shop, be sure to inquire about discounts for the following (availability will vary according to the state and company) :
- No accidents in 3 years
- No moving violations in 3 years
- Defensive driving course
- Student drivers with good grades
- College students away from home
- $500 deductible
- $1,000 deductible
- Daytime running lights
- Low annual mileage
- Drivers over 50 to 55 years of age
- Driver training course
- Anti-theft device
- Air bags
- Anti-lock brakes
- More than one car insured with the same company
- Auto and homeowners coverage with the same company
- Long-time customer with insurance company
But don't forget that the key to savings is not the discounts but the final price. A company that offers few discounts may still have a lower overall price. Getting a car insurance is compulsory before you can drive on the road. Do your maths carefully and work out the best and most affordable auto insurance plan that suits your needs.
