Really Cheap Auto Insurance
From LoveToKnow Insurance
Finding really cheap auto insurance can often feel like an overwhelming task. There are so many factors that influence the price of an auto insurance policy that sometimes it feels like it's impossible to get cheap car insurance.
Really Cheap Auto Insurance Explained
Finding affordable car insurance isn't rocket science. Following three simple steps, you can drastically reduce the cost of your car insurance:
- Increase your value to the insurance company
- Decrease your vehicle's liability
- Cut your policy's costs
Even if you currently have a policy that you believe is a good value, you could end up saving even more if you carefully go through these steps.
Increase Your Insurability Value
Many people assume that cost of car insurance is all about the driving record. The truth is, insurance companies use an exhaustive list of factors when they analyze the level of liability a person represents. The following are only a few examples:
- Age
- Marital status
- Education level
- Accidents or speeding tickets
- How long since the last accident
- Homeowner
- Credit score
Given the range of this list, there are plenty of opportunities to significantly cut the cost of your car insurance.
Buy a Radar Detector
Even if you aren't a speed demon, there are some days when you're traveling home from work and you "zone out," not realizing that you've just driven out of a 55 mph zone into a 35 mph zone. Police can set up a "speed trap" in order to catch drivers who haven't immediately slowed down after such a speed limit transition. While this is legal, many drivers consider the tactic unfair.
Consider purchasing a high-quality radar detector if you live in a state where they are legal. Mounted on the dash, these devices can give you a sufficient early warning of a speed trap. This gives you time to slow down and avoid a costly speeding ticket, and a costly increase of your insurance premium which could occur because of the ticket.
Take a Class
Have you already received a few speeding tickets? Have no fear. Many insurance companies will provide you with a credit if you are willing to take a "driver refresher course." Many states provide these classes to drivers who have received a speeding ticket in order to remove those tickets from your record. The classes last from one day to several. They are fairly easy to get through, and when you're finished, the benefits far outweigh the inconvenience. There are few better ways that drivers can do something to proactively cut down the cost of their insurance. Even if you don't live in a state that offers to remove the ticket from your record, your insurance company may still reduce the cost of your policy if you take one of those classes, so check with your insurance company.
Be Fiscally Responsible
In recent years, insurance companies decided to start using consumer credit records as an indication of driving liability. Studies indicate that consumers who are more fiscally responsible are also more responsible on the road. Whatever the reason, you stand to save a fortune if you maintain your credit record. If you find that the insurance company has used your credit rating as a reason to increase your cost, make sure to contact all three credit bureaus, Equifax, TransUnion, and Experian, and obtain a free copy of your credit report. If you can identify any negative mark that is incorrect, make sure to go through the procedure each agency provides in order to correct any mistakes that you find and improve your credit score.
Decrease Your Vehicle's Liability
The next time you have an opportunity to buy a new car, remember that insurance rates are overwhelmingly weighted depending on what car you drive. Buying a used car is much cheaper than buying new for many reasons, not the least of which is a much lower insurance premium. Additionally, when shopping for your next car, look for the following features that will help you obtain the cheapest quotes for car insurance:
- Buy older model cars, even last year's model of a "new" car is cheaper than this year's model
- Check the crash test safety rating of your selected car. These ratings have significant impact on the cost of car insurance.
- Check the list of most stolen cars, and make sure not to buy any of those on the top ten list.
- Install any of the anti-theft devices listed at the National Insurance Crime Bureau (NICB). Most insurance companies offer discounted rates if you simply install a car alarm system.
Reduce the Cost of Your Policy
Another effective way to get really cheap auto insurance is to educate yourself about [[Explain Auto Insurance Lingo|auto insurance lingo.] Understanding the many components of auto insurance and how deductibles work, can empower you to customize your own policy, rather than depending on the insurance agent to do it for you.
The following changes (allowed in most states) will provide the cheapest car insurance policy:
- Select the highest deductible you feel comfortable with
- If the full value of your older vehicle is not much more than your annual premium, select liability coverage only
- Pay your annual premium all at once, if you can, and avoid additional fees
Check out these resources for more information on finding cheap car insurance:
Learn More
This page has been accessed 847 times. This page was last modified 04:00, 17 November 2008.
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