Cheap Car Insurance Quotes
What is Car Insurance?
It is the term used to imply a policy which is purchased by the owners of the vehicles in order to minimize costs in case they get into some sorts of auto accidents.
Rather than paying the full amount for covering the accidents, the policy owners will just have to pay premiums annually for the auto insurance firm; then the company will be responsible to cover majority or sometimes total of the costs related to the accidents.
There are some mandatory terms which you need to be familiar before you go into the details about how to lower your car insurance costs.
- Car Insurance Premium: It is the payment which you make in order to keep your car insurance policy active and you often pay on a regular basis, often annually or sometimes semi-annually or even quarterly.
- Car Insurance Deductible: It is the payment which you are required to make right out of your account prior to your expenses which will be paid at the claim.
Types of Car Insurance
This is something that you must understand clearly in order to know best what policy suits you so that you can be able to negotiate with the car insurance firms for a better deal.
Car Insurance Policy is classified in 3 levels. First level is third party, second level is third party with fire and theft and the final level is comprehensive.
- Third Party: It is the basic minimum which the car owners are required to comply by law. It is able to cover the compensation for injuries of others as well as damages of other properties. However, it is not always the lowest in costs.
- Third Party with Fire and Theft: Similar the Third Party with the inclusion of expenses for replacement or repairs in case your car is damaged in fire or stolen.
- Comprehensive: It is the highest level of car insurance policy that you might be able to obtain. It enables the protection against both damages of your vehicle and accidents with others involved. Also it might include the courtesy car together with insurance on legal expenses, but more likely there will be additional costs incurred.
Why do you need Car Insurance?
It is essential to own a car insurance policy as it will cover the expenses in case your car is damaged over an accident as well as injury compensation for other drivers, pedestrians and passengers.
Furthermore, car insurance policy can even cover your expenses on occasions such as your vehicle is stolen, destroyed in fire or even vandalized.
Most importantly, driving on the road without any car insurance policy is illegal and the consequence on getting caught is fines or even disqualification of driving.
There is no maximum for the fine, and also you will get penalty points on the license which can be from 6 to 8 points.
Having a car insurance policy will help you avoid ruining your financial plan effectively. Normally, it is hard to afford the costs and expenses of an accident, not to mention sometimes impossible. A car insurance policy will be able to share your burden on those problems. You can even opt for the option of car insurance policy called liability which means it will cover the costs from the accident for the other drivers and their cars but not yours. However, it is still a significant help which might prevent you from going bankrupt. This option might be appropriate in case you currently own an old car.
In the situation which your car might be the second most valuable possession after your house, you will definitely want to protect it. Besides the liability option, you might need the collision option now as it will be able to cover your expenses for fixing the car in case of having accident. Since it is a brand new car, it will be worth having a car insurance policy like that.
If you have already been clear about the term as well as the importance of car insurance, then you are ready to explore the best part of this article which is all about the tips and tricks that you can apply in order to score the best car insurance deal for your own good.
1. Comparison Shop
Nowadays, it is not hard at all in finding an affordable car insurance firm. The painful part is separating them in order so that you can be able to choose the most affordable car insurance while still keeping all you need for a car insurance policy in check.
Firstly, you can check out the local car insurance firm through either phone call or visiting their office and make sure to take note on their offers.
Secondly, it is time for online searching and still be sure to take note in order to compare later on.
Finally, you can consult your family and friends about their preference of car insurance firm as well as their opinions and recommendations.
2. Age-Based Discounts
It is often neglected by younger people but age does play a part in determining the car insurance premium. At the age of 25, you will be able to observe lower premium offered as sometimes it can get up to 25% discount.
Normally, lowest car insurance premium is often offered for drivers from 25 to 55 years of age as they are consider the safest driving age compared to elderly drivers or teenagers. Also the discount will be differed among car insurance companies.
3. Move to Area with Lower Criminal Rate
Location of home and workplace as well as the commuting time between those two locations also plays a part in determining the premium of your car insurance.
People who live in wealthy neighborhoods will be less prone to stolen or damaged car during night parking time. Also the short commuting time will make you less vulnerable to accidents.
Based on the home address and home phone number, the car insurance company will be able to identify the level of risk at your area as well as the distance between work and home based on your employer’s details. Then they will be able to offer you the premium.
4. Consider Getting a Different Car if Savings Warrant it
First of all, new car will guarantee higher costs of replacement or repair.
However, it still depends on the reliability as a used car with 20 years on the road cannot be as reliable as a new car. Even though, the used car is more affordable, it will eventually cost you more on car insurance premium.
On the other hand, luxury and sports car will cost more on premium as those ones have significantly higher speed than normal cars and some of them even have aftermarket or upgraded parts installed on them. It means they will be more vulnerable to accidents, thus implies higher premium.
5. Increase Deductible
As mentioned above about the deductible, it is also the most significant factors in determining the premium of your car insurance. As the matter of fact, if you are willing to pay more deductible amount, your premium will be less.
Some drives might not notice but it is allowed by the car insurance companies for the car owners to raise deductible amount so that they can have lower premium. In case you have perfect driving record and you have never make a payment like that, this will be a good strategy for you to negotiate the cheapest car insurance.
6. Consolidate Your Policies with One Company
If you have several insurance policies with several companies, you might consider consolidate them so that you only have to deal with one firm.
By consolidating all insurance policies like that, you will somehow become the insurance company’s valuable customer which can enable you to negotiate the premium for a cheapest car insurance deal.
Furthermore, as the company’s valuable customer, you might be able to enjoy some of the privileges such as discounts, thus make the payment become a lot less.
7. Check for Multiple Vehicle Discounts
Some people might own more than one car and normally there are insurance policies on each and every car.
If you are multiple-car owners and you are looking for the cheapest car insurance deal out there, you might consider the consolidation of those car insurance policies. This will absolutely get you a discount on the premium of car insurance. You can even use a non-working car in order to perform this strategy.
Furthermore, this strategy also works with multiple drivers. It can be applied for cases such as spouses, lovers or even roommates. Even though, you still need to compare among different firms, it will definitely be cheaper than having separate car insurance policies with either same companies or different companies.
8. Stay Loyal
Loyalty has always been a great virtue in conducting business even for car insurance. Commonly, loyal customers will usually have cheaper premium offered as the reward for the long commitment with the company.
In the process of getting the cheapest car insurance, agent loyalty is your best ally. If you have found the car insurance policy which has the coverage you desire with the appropriate premium, you should begin developing the relationship with that firm by getting to know the local agents as well as stay with the firm year by year.
Also making payment on time is also a gesture of loyalty as it will save you from additional charges or fines or late fees.
9. Get Liability only if Your Car is Old
If you are searching for the cheapest car insurance, you will just need to find the car insurance policy which can cover the areas you want instead of going full option and wasting money.
In case your car’s value is below $1000, then you do not need insurance for collision, not to mention comprehensive policy. It is because if you are engaged in an accident, the costs of fixing your car can sometimes be higher than the current value of the car.
This strategy can help you save up to 50% in some certain cases.
10. Get Storage Insurance if You Don’t Drive Your Car Year Round
If you do not fully operate your car all year or your car is just for show, then you might consider getting only the storage option of car insurance policy.
This option will not be legal when the car is on road; however, it will cover in case your car is damaged while in storage.
11. Improve and Fix Your Credit Score
It is considered the best tip on getting the cheapest car insurance policy. By keeping the credit score clean, it means you will have to make payment on time for bills, loans as well as avoid spending over the limit of your credit card.
Even though, you are supposed your report is clean, you still need to request a copy of annual credit report in order to prevent identity theft.
By applying this strategy, you can be able to save thousands of dollars from payments of car insurance policy.
12. Clean Driving Record
Another excellent tip for achieving the cheapest car insurance policy is keeping a clear driving record. Even with just one accident, your premium might as well go up by 40%. Therefore, keep eyes on the road and drive carefully can help you get an affordable car insurance policy easier.
Even though, different car insurance firm will have different methods to evaluate drivers, most of the firm will offer discount for the drivers who are qualified as safe with clean driving record. Also you need to boldly ask the company for this discount as it is not usually brought up automatically by the car insurance firm.
It will be hard to get back your benefits from safe driving once you have an accident and you might probably endure higher rate in the first few years.
In case of getting a ticket, it can be helped by going to driving school.
13. Vehicle Safety Issues
Safety of your car will be the factor which will determine the premium of your car insurance policy.
New car with new features and technology will be deemed as safer than the older one. Therefore, you can have the option of updating the safety system of your old car or make a purchase of a more recent vehicle.
There are important features that you need to pay extra attention which are seatbelts and airbags. Having airbags for rear seats can significantly improve the safety standard of your car; thus will lower the premium of your car insurance policy.
Besides, windows and windshields should have no cracks while the mirrors are intact so that when the firm inspects your car, there will be no fault or the premium will be pushed to higher.
14. Get a Security Device
If your car has an alarm system which is functioning and modern, you can bring that up in order to negotiate for a cheapest car insurance policy possible.
In case, your car did not have, it will be worthwhile to have an alarm system installed in your car. With the decent costs of the system as well as less vulnerable for car break-in and able to get cheaper premium for car insurance policy, this tip is one of the best you can obtain.
Also make sure to check with the car insurance firms to see which alarm system they classify as secured and give discount.
15. Park Off-Street, or Even in a Garage
As vandalism is on the rise, cars which are parked in open streets, unattended or unlocked will be more prone to vandalism and this will guarantee a higher premium.
Even though, parking in the garage does not mean your car is totally protected, but car insurance firms do take this into account for cheaper premium. Also some car insurance firms might be satisfied with just the carport, so you will have to ask.
Verify Accuracy on Your Policy
It is always necessary to have your car insurance policy checked thoroughly in order to make sure the coverage as well as the premium is correctly noted.
If you are searching for the cheapest car insurance policy out there, it is compulsory that you meticulously check your personal details. In case there is any error, immediately report to the car insurance firm. You might think such errors as wrong marital status or birth date are trivial, but it will cost you greatly later on if there is accident and the firm will just rely on the paper to process the claim. It will result in you might not be able to get insurance at all with the wrong information.
Depend on the car insurance firm but most of the companies offer discount premium for drivers who are above 55 or 65 years of age.
Drivers who are retired will drive much less than those who are still working. Therefore, if you are above 55 years old and still driving, you will need to claim that with the car insurance firm as discount on retirement can be huge. Sometimes, you have to file a claim in order to get it as it is not automatically offered.
Majority of car insurance firms have discount offered based on personal affiliation. However, you will need to ask for it.
Group affiliations can range from university, college, work, military organization… It does not matter if your group might be unknown or small; just ask as it might get you unexpected discount for cheap car insurance.
You might as well join a group just for its benefit in getting the cheapest car insurance. You can ask the agent for group list that you can join in order to get discount.
Take an Advance Driving Course
The tip here is taking a driving class through the car insurance firm. However, if you fail the class, it is possible that you might take a higher premium for your car insurance policy.
Also it is recommended to take the defensive driving class as it is the top class for getting a discount premium. Keep in mind that you might need to show certificate as proof of completion to be able to obtain the benefits.
Get Good Grade and Ask For Student Discounts
Good grade at school can be beneficial for getting cheap car insurance policy. Normally, it does not matter if you are college student with your own car or under parents’ policy or even high school students, as long as your grade is good, you will be able to get a discount.
You need to show your transcript as the proof for the car insurance company to verify. The discount for student can sometimes quite significant.
Drive Less: Bike, Walk, Carpool, Take Public Transportation
The time amount you spend driving on the road will also be a factor for determining the premium. If you do not use the car often, you will be more likely to get a discount because car insurance firm takes shorter times on road as less risk of being involved in an accident. However, this kind of discount will require you to ask the car insurance firm for it. In case, the car insurance firm does not offer this discount, you can consider looking at other companies that might offer.
Make Larger Payments on Your Premium
You usually have more power in the arrangements of specific payment with the car insurance firm than you might think. You can freely choose the term in which you will pay your premium.
Even though, it is hard to make the payment in full, but doing that will save you much more than pay in smaller term such as quarterly or monthly. Also the companies are more than willing to offer some discounts who could clear a lump sum quickly.
Verify VIN Accuracy
Similar to verify the personal information, the vehicle identification number or VIN is what used to identify your car. It is unique therefore even if only one digit is mistaken, you might incur overcharges and it can be done without your knowledge.
Review your Policy for Unnecessary Add-Ons
Car insurance company sometimes offers you packages which can help the drivers; however, those packages are usually unworthy and waste of money.
There is package which offers a replacement of your car with a new one in case it is wrecked by an accident. In fact, it only refers to the value at the moment of wreck not the original purchase. Therefore, it is recommended to review and get rid of those unbeneficial add-ons in order to get a cheap car insurance policy.
Due to global warming as well as many environmental issues, the “green” cars are slowly replacing other modern cars on the road. Therefore, some car insurance firms even offer discount premium for the owners of “green” car.
Although the cost of new car might not deserve the lower premium but if you are still looking for a new car, then try a “green” one as it is not only good for environment but also helps you get a cheaper premium for the car insurance policy.
Above are the 25 most effective tips and tricks on how to get the cheapest car insurance policy and here are the list of top 10 car insurance companied USA for you to shop around and consider which one suit you.
- State Farm Insurance
- AA Auto Insurance
- Liberty Mutual
- 21st Century Insurance
Lastly, there is one part which is just as important as the tips and tricks that is the quotes for car insurance policy. By answering the questions, you will be able to know what type of policy or what coverage you need for your car insurance.
- Do you have your own car now?
- What model and make is your car?
- How often do you take your car on the road?
- Have you ever used your car for business conduct?
- Do you have any more cars which are currently insured?
- Is there a salvage title for your car?
- Have you ever violated traffic law?
- Have you has any points in the driving record?
- Have you ever been in accident which you are at fault?
- Birth Date
- Social Security Number
- Have you had a house on your own?
- Have you been married?
- What are you doing for a living?
- How many drivers are there in your household?
- Do you want to exclude any drivers from the policy?
- Auto Insurance history
- Do you currently use any car insurance?
- Who is your current provider of car insurance?
- When is the expired date of your policy?