Guide To Getting Affordable Auto Insurance

Vehicle insurance is one of those things that nobody wants to pay for, but everyone must have. Not only does it cover you if you get into an accident, theft, or natural disaster, it’s also against the law to not have some type of coverage.

However, just because you must have insurance, doesn’t mean you should pay an outrageous price for it. In fact, there’s several ways that you can get affordable insurance coverage on all your household vehicles. Take a look at our guide to affordable insurance and take charge of your monthly premiums.

Get Multiple Quotes

Every insurance company promises the lowest rates to their customers when compared to their competitors. In reality, the quote you receive revolves around your driving record, credit score, the type of vehicle you drive, and many other factors.

Making it impossible for an insurance provider to actually guarantee that they’ll offer you the lowest prices. This means, if you want to secure an affordable insurance policy, you’ll need to get a quote from several insurance providers.

A quote from an insurance provider’s free and you can receive one from any company that you want. Once you receive your quotes, you can then compare prices and see which company has the best insurance policy for your needs.

Remember, the cheapest policy does not mean the best policy. It’s important that you pick a policy that’s both affordable and has the coverage you need.

Ask About Discounts

Most insurance companies offer discounts to new and existing policy holders. Before settling on a quoted policy, ask the insurance carrier what discounts they offer to lower your premium. Some examples of discounts they might have include:

  • Bundling: Where you bundle your homeowners, car, or life insurance policies
  • Discounts for customers with a clean driving record
  • Paperless Billing
  • Work or affiliate group discounts
  • Getting several vehicles insured under one policy
  • Student discounts
  • Safety and anti-theft vehicle features discount
  • Discounts for paying your bill upfront annually or every 6-months

Depending on the insurance company, they might have other discounts available that can help you save money on your policy. The insurance representative will go through the list to help you find the ones that apply to you.

Discuss Competitive Pricing

After you’ve received quotes and found an insurer that has a better policy, but a higher quote, ask about competitive pricing. Most insurers want your business and will compete with other companies to get it.

If you prove another company quoted you a lower price, the insurer may offer you a competitive price that’s equal to or lower than the offer you received from the other company.

Avoid Unnecessary Coverage

When it comes to purchasing an insurance policy the most popular premiums include comprehensive and collision coverage. This coverage pays for damages caused by natural disasters, accidents, theft, and other damages up to the value of your vehicle. While the coverage protects you more than other policies like liability, it costs more annually to have.

In addition, this type or coverage isn’t always the best option for every driver. For example, if you own an older vehicle that doesn’t hold much value, you might end up paying more on your premium with comprehensive and collision insurance than your vehicle’s worth. In this case, it’s cheaper and more logical to choose something like liability.

Increase Deductible

If you opt for comprehensive and collision coverage on your vehicle, you can lower your premium by increasing your deductible. However, you’ll have to pay more out-of-pocket costs if you get into an accident, your vehicle gets stolen, or if it gets damaged.

Which makes it important to assess whether you could afford to pay more for damages in the future or if you’re better off paying more on your premium.

Count Your Miles

Another way you can score affordable auto insurance is by keeping track of the miles you drive and choosing one of the Pay-Per-Mile coverage options. With this option, you receive a device that plugs in to your vehicle so insurers can track your driving.

This device tells them how many miles you drive, where you are driving, and your driving habits such as speed and braking. Depending on these factors, the insurer may offer you discounts.

This is a great option for drivers who don’t travel much throughout the year. Typically, those who drive 10,000 or fewer miles in a year receive the most benefits and a more affordable auto insurance.

In addition, drivers who avoid speeding and brake gradually, opposed to last-minute braking, also reap the rewards of this program. You can also try several different companies to see who offers the best discounts based on your driving.

Check Your Credit Score

Just like applying for a mortgage loan or car loan, your credit score has an impact on how much you’ll pay on your insurance policy. In the eyes of the insurer, the lower a policy holders credit score is, the higher the chance of them filing a claim.

Thus, the increase in the cost of coverage. Which makes keeping your credit score in good standing an important factor to consider before purchasing an insurance policy.

You can track your score using either a paid or free credit monitoring site. In the meantime, it’s important to pay your bills on time, keep credit card utilization below 20-percent, and decrease your debt-to-income ratio to help improve or keep your score at a good rating. You can also pay off collections and dispute any inaccurate information you find on your credit report.

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