Are you shopping for auto insurance? Maybe you’re already covered, but haven’t compared your current rates with other insurance companies in a while… If you fall into one of these two categories, read these four tips on how to ensure you are getting the best policy for you and your family at the cheapest out-of-pocket cost to you!
1. Don’t believe a company that claims they’re the cheapest all-around.
Some automobile insurance companies spend a lot of money on advertising campaigns that claim they provide the best insurance at the lowest price- always! But, did you know that two people with the same coverage by the same company can pay two very different amounts for coverage? The cheapest insurance company’s rate for one person could be the most expensive for another, with the same exact type of policy and coverage. Therefore, no insurance company can claim to have the lowest prices for everybody. In order to find the best deal, you must do some shopping around.
2. Don’t go with the big guys just because you watched a good commercial.
The insurance market is dominated by four companies that control almost half the country’s car insurance business. You can probably guess what they are: Geico, Allstate, State Farm, and Progressive. However, their satisfaction ratings are not as high as other smaller regional insurers. Their rates are not always lower, either.
3. Ask for discounts.
Insurance companies often offer discounts to policyholders who fall into one or more of these categories:
· Insure more than one car on their policy
· Purchase and bundle insurance with other policies from the same company
· Have a good driving record
· Pay their premium upfront
· Opt for paperless communication and billing
· Are insuring a car with specific safety and/or anti-theft features
· Are members of a participating professional organization or group
Keep in mind, “discounts” doesn’t mean the bottom line will be less costly than a policy without the same discounts. Don’t let that word trick you. Instead compare the final premium and deductible calculations from several insurers.
4. Stay on top of your credit.
One thing you may not know is that your credit could play a significant part in your car insurance quote, since it is widely believed by the insurance industry that clients’ credit has been proven to correlate with the likelihood they will file one or multiple claims. To improve your credit, pay bills on time, reduce your debt, reduce the number of open credit accounts you have,
and check your credit often to ensure you’re on the right track. Check with an agent about if/how much of an impact your credit may have on your cost for auto insurance.
These are just a few of the things you should consider when shopping for auto insurance or comparing the coverage and costs you already have to those other companies may be offering. Stay tuned for a future blog with more money-saving tips!