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Your Guide to Comparing Cheap Car Insurance Rates


Every car owner is hoping to get the cheapest possible premium from an insurance provider.  If you are presently looking for an auto insurance coverage, here are some tips on how you can compare cheap car insurance rates more effectively:

Use an insurance comparison website.  A comparison website is a great tool in gathering quotes from potential insurers.   All you need to do is enter basic information to get an estimate and you will be presented with several quotes from different companies that you can check out online.

Ask for opinions.  Do not forget to ask relatives and friends for possible recommendations.  Perhaps they are enjoying great service from their insurance company and can give you a trusted recommendation.

Check the insurer’s credentials.    Aside from cheap car insurance rates, you want to make sure that you are dealing with a legitimate insurance company.  Do not forget to check the financial stability of the company as well, especially now that a lot of companies are forced to shut down due to the economic recession.

Check the terms of the coverage.  Cheap car insurance rates are not the only things you should be looking for.  Bear in mind that a cheap premium does not always guarantee a great insurance package.  Do not forget to look beyond the costs.  Carefully examine the exact inclusions of the offer and see if it is worth signing up for.

Watch the market trends.  Sometimes, insurance companies offer the best deals during low peak seasons when there are fewer customers in the market.  If applicable, you may want to avoid the holiday seasons since these are times when people usually purchase new cars or go on trips and obtain all kinds of car insurance.

Improve your credit score.  Have you checked your credit report?  Insurers reserve their cheap car insurance rates and packages for customers with good credit history.  Therefore, improving your FICO score can enable you to get discounts from a prospective insurance provider.  Before submitting your insurance application, check your report to know where you stand.

Do not be a high-risk driver.  Insurance companies tend to impose higher rates and premiums to high-risk drivers.  Hence, you want to make sure that you will not be considered as a high-risk driver.

Ensure the safety of your vehicle with anti-theft devices.  Avoid traffic violations, and avoid cities with high crime rates.  If you are a new driver, raise your credibility by acquiring a certificate from an official driving school.