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Low Car Insurance Rates

We live in a world that has been greatly affected by the recession and the money issue has become a real problem for most of us. Everyone is searching for new methods of saving money; one of these methods would be to get low car insurance rates. By low it should be understood that the price of the rates is low, not the quality of the insurance itself. Regardless of what you choose, you must remember that automobile insurance is a necessity, not a luxury which means that this is not a place to skimp, although money is tight for most of us right now.

First of all, you need to know that the price you have to pay for the car insurance depends on the following factors: age, driving record, type of the car, where you live, the amount of coverage you want, the deductible you choose and any of the discounts that you are eligible for at that time.

Second of all, you need to shop around and not go directly to the first insurance company you stumble upon as there could be other firms that will give you a more affordable deal. It is advisable to get at least three price quotes. You have the possibility to either call these companies directly or access the needed information over their website (if they have one). The main reasons for purchasing car insurance (or any other type for that matter) are for financial protection and to offer you piece of mind, which means that you need to pick a company that has a very good financial health. Don’t shop around alone as it is advisable to ask some of your relative and friends, maybe they know some great deals that you could get.

If you don’t have a car yet and planning on getting a new or a used one, you should first check the insurance costs. What it is important to know is that the car insurance premiums are based on the vehicle’s price tag, its overall safety record, the costs to repair it and the likelihood of being stolen by criminals. Many of the insurance companies will offer substantial discounts for features that reduce the risks of theft or injuries. Some of these features are anti-theft devices or daytime running lights. If you want more help to decide which car suits you the best, visit the website of the Insurance Institute for Highway Safety.

Another way to get low car insurance rates is by asking for higher deductibles. If you didn’t know, these are what you must pay before the actual insurance policy kicks in. For example, if you increase your deductible from $200 to about $500, it could very well reduce your comprehensive and collision coverage costs by up to 30%. You can save about 40% if you choose a $1,000 deductible. Be very attentive when selecting the amount of money for the deductible because you need to have the money if something bad happens to the car.

If you have an older car, it is advisable to reduce the number of the comprehensive and/or collision coverage. You can find out how much your car worth is by asking auto dealers or banks. Another method would be to check the Kelley’s Blue Book. If the car you own is worth less than 10 times the premium, getting coverage may not be cost effective.

Some insurance companies will offer reductions to the insurance rates if you purchase two or more types of insurance policies. For example, if you own a house that is insured and you get an insurance policy for the car at the same company, they will most likely give you lower rates. You can benefit from just about the same reduction if you insure more than one car to the same company. Although we said in the first part of the article that it is best to shop around, remember the fact that some companies will offer deductions to long-time customers.

Don’t forget about your credit record as it is vital to your insurance policy. Many of the insurance companies calculate the price of auto insurance rates by analyzing the credit information. In order to have a good credit standing, make sure that you pay all your bills on time and keep your credit balances as low as you can. It is highly advisable to check the credit record on regular basis so that you can be certain that it is 100% correct and if there are problems, these should be corrected promptly.

If you are one of those drivers that use the car for a lower than average number of miles per year, you might be eligible for a discount. This promotion is offered only by some companies and some of them will also offer lower rates for drivers who can car pool to the workplace.

Another advice would be to get insurance through a group plan from your employer as some companies will offer significant reductions. Besides employers, other groups eligible for a reduction are business, alumni, professional as well as other associations. For this reason, it is best to ask your current employer if this is possible at the company you work for.

The vast majority of the companies offer other insurance discounts, like for drivers that haven’t had an accident or moving violations for a specific number of years. Other discounts can be obtained if you take a defensive driving course or other similar methods that will save you some money. One last method to get low car insurance rates is by leaving out the extra rental car coverage if you have a very comprehensive and collision coverage.  If your car is relatively new you should be OK, but if the vehicle is worth only a few thousand, it is highly recommended to get the additional coverage in order to avoid unwanted situations that might occur in the future, situations which can be covered by an insurance policy.


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