Best car insurance policy
Auto insurance is required by law in most states, so if you are going to drive, you need to purchase coverage. You should find out what your state’s requirements are for minimum liability coverage, but you will also need to think about your specific requirements before obtaining a policy. The bare minimum amount of insurance may be just right for you, or you may need to purchase more coverage.
While you won’t need auto insurance before you buy your car, you will need it before you can drive the car home from the dealership. So, if you know the exact kind of vehicle you are going to purchase, you can call your insurance agent ahead of time and provide the appropriate information. However, if you were undecided before going to the car lot and happen to find exactly what you are looking for, you can call your insurance agent from the dealership.
If you don’t have an insurance agent, your dealer can recommend one to you. It is important to remember that you should never drive a car without insurance. Getting into an accident with no coverage can only lead to significant financial and legal trouble.
How is Your Rate Determined?
Look around you. If there are other drivers in the room, there is a good chance that everyone present is paying a different rate for their auto insurance. Rates are largely based on statistics and your personal driving history, and it is good to know what you can reasonably expect to be charged so that you don’t overpay for your coverage.
- Your Age and Experience: Young drivers lack the knowledge that comes from experience, so they typically pay higher premiums. And young male drivers are usually more expensive to insure than their female counterparts because statistics have shown that young men (vs. young women) are more likely to be involved in accidents and file claims.
- Your Address: According to statistics, you are more likely to file an insurance claim if you live in certain cities or neighborhoods. While this may seem unfair, providing companies analyze hard data in order to determine which geographic locations are riskier to drive in than others. And please don’t try to provide a fake address when seeking coverage. This is considered insurance fraud under the law.
- Your Car: Is your vehicle older or newer? Is it popular among would-be thieves? Some cars are more expensive to insure than others, and this should influence your next car buying decision. Also, if your vehicle has certain safety features or antitheft devices installed, you should get a price break on your premium. Make sure that you provide all of these details when you speak with your agent.
- Your Driving Record: People with clean driving records (no accidents or traffic citations) usually pay less for their coverage than drivers who have made several claims. Every time you are involved in an incident that results in a claim being made, you make yourself more of an insurance risk. In addition to the obvious safety factor, this is just one more reason to obey traffic laws and practice good driving habits.
- Your Credit: Believe it or not, having bad credit can cause your auto insurance premiums to go up. Statistics report that people with damaged credit are more likely to file claims than drivers with good credit scores. So, if you are puzzled about why your insurance rates are higher than you would expect, check your credit report. Something in your borrowing history may be the culprit.
It is impossible to change your age and very inconvenient to just pack up your belongings and move to an area with better insurance rates. But you can strategically buy a car that is affordable to insure, be a responsible driver and take measures to improve your credit. Doing these things can save you money on your coverage, and there may be other ways to pay less for your auto insurance.
Looking for Discounts
There are a number of ways to save money on auto insurance, but a lot of drivers are simply not aware that certain discounts exist. Find out if you automatically qualify for any price breaks or if there is something relatively simple you can do to earn a better rate.
- Shop around. There are a number of insurance providers out there, and they are all competing for your business. If you get a quote from one company that doesn’t seem ideal, don’t be afraid to go to another provider to see what they can do for you. Obtain several quotes and compare prices before deciding on which deal is right for you.
- Use your student status. Some providers will give student discounts, but you have to ask for one. Also, if you are a student who consistently earns good grades, you may qualify for additional discounts.
- Take a class. Some insurance companies offer reduced rates for drivers who complete either a driver’s education course or a class in driver’s safety. You may have to pay a fee in order to take the class, but you will probably save enough on your coverage to make the investment worthwhile.
- Use your seniority. If you have kept your policy with the same insurer for several years, you may be able to ask for a discounted premium. Good insurance companies value customer loyalty, so it would make sense for them to reward your long-term patronage.
For the majority of drivers, paying for auto insurance can seem like an irksome requirement. Basically, you are forking out money every month for something that you’re hoping to never use. However, if you ever do need your policy, you will be glad to have it. Just make sure that you are able to get the most competitive rates possible.
Auto Loans for Better Credit
If you need to buy a car and want an opportunity to improve your credit so that you’re no longer paying more than you need to for auto insurance, a bad credit auto loan will serve both of your needs. After financing your car purchase, your credit score will gradually increase with your timely payments. If this sounds like a good plan to you, Auto Credit Express can make it happen. No matter what your credit currently looks like, we can connect you with a dealer in your area who is qualified to work with your situation.