Cheap Car Insurance
From LoveToKnow Insurance
No one wants to pay a lot for his automobile policy, but cheap car insurance could wind up costing more later. Make sure you understand how rates are determined and how to keep your costs down to avoid being taken for a ride.
How Car Insurance Rates are Determined
When it comes to setting up your insurance rate, most of the factors are in your hands. Do you get a lot of speeding tickets in your expensive sports car? Then you can probably kiss cheap car insurance goodbye. On the other hand, if you only drive your little sedan to and from church once a week, you may save hundreds of dollars.
Is it really that simple? Yes and no. There are dozens of things that a car insurance company considers before offering you a policy. Many of them, like your age and sex, are out of your control. However, many other issues can be improved upon, such as:
Driving History
Staying out of trouble can save you money when you get a car insurance quotes. Many companies offer a discount if you go a certain number of years without an accident or traffic violation. If you do have past violations, you may be able to take a safe driving course to get back in the insurance company’s good graces.
Vehicle Make and Model
Some vehicles carry higher car insurance rates because they are more likely to be driven recklessly, or they do not have a high safety rating. Other cars cost a lot to repair if they are damaged in an accident. Classic vehicles may featue hard-to-find parts, and this drives up the cost of even a simple repair. By the same token, if your main vehicle has good safety features and is a popular model, you might get a better rate.
Type of Driving
Having a long commute through heavy, metropolitan traffic will make your rate higher than someone who drives a few miles through farmland. Although the money you save on insurance premiums by working closer to home is probably not worth finding a new job, it is something to consider as you job hunt.
Many companies offer discounts that can lower your rates. Your key to cheap car insurance may include:
- Good grades (for student drivers)
- Insuring more than one vehicle on the same policy
- Adding safety features, like anti-theft devices or daytime running lights
Remember to ask your company about any hidden discounts for which you might qualify.
Comparing Cheap Car Insurance
Even if you find cheap car insurance, it may not be the best deal. There are many things to consider besides rates when choosing a policy, and it can be difficult to compare different companies side-by-side.
For example, you may be able to get a drastically lower rate by choosing a policy with a large deductible. While this can save you a lot of short-term money, you will have to come up with more out-of-pocket money in the event of an accident, vandalism, or theft. Although you may be willing to take this gamble, remember that being a safe driver is only half the battle. Your car can easily get damaged sitting in a parking lot through no fault of your own. Your deductible should only be as high as you can reasonably afford.
Some insurance companies may offer extras that can provide you with long-term savings. Roadside assistance, for example, is a relatively low-cost car insurance add on, which may cost less than being towed once or twice a year.
Avoiding Cheap Car Insurance Scams
As with most things in life, if it seems too good to be true, it probably is. There have been a number of fraud cases in the past few years in which individuals posing as insurance brokers have taken money for policies they had no right to sell. These shady characters will offer you a better deal than you can find anywhere else, or they may try to sell you a policy for less than your state’s legal coverage requirements. It is important to make sure the person you are dealing with is an authorized agent of an insurance company that is licensed in your state.
You can check your state’s insurance commission website for a list of authorized companies. If you are shopping for car insurance online, search the Internet for feedback from other customers before you make your choice. If you have any hesitation about the policy or the representative, move on and find someone else to work with. Cheap car insurance is worthless if it is not real insurance.
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