The auto insurance industry is first and foremost a business, not some charitable institution willing to help the needy. So, do not be surprised if they charge high insurance rates. They just want to make money. Is there any way to avoid these policies and find low cost car insurance? Fortunately, there is. Learn to shop smart and follow these simple tips.
There are low car insurance rates offered by big name companies, but the cheapest rates are provided by lesser known insurers. These smaller companies maintain their low rates to keep up with the competition against big time insurers. Actually, their rates should have been close, but bigger companies offer additional “free” services such as roadside assistance or rental car reimbursement. They make their clients believe they are giving away these services for free, but in fact, you are paying for them. If you prefer to do business with a famous insurer, ask them to take away the extras from your policy and then adjust the price.
Check your credit score because it does affect your auto insurance rates. If you have a low credit rating, insurers consider you as high-risk, meaning you either do not pay on time or you have poor finances. If you want to have low cost car insurance, work hard to improve those credit scores no matter how low they are. Eventually, you will see some improvement in your insurance bills.
At some time every year, insurance companies compete against one another by lowering their rates hoping that customers would apply or even transfer their accounts to them. Unfortunately, they do not make announcements when they do this, so it is up to you to shop around insurance companies during these times that they offer low cost car insurance. These exciting times of the year often fall on midsummer or late December when they are getting rid of older stocks. Ask different insurers during this time and you will be surprised at the prices.
There are other ways to get hold of cheap auto insurance rates. Instead of paying your bills monthly or quarterly, you can pay it annually. Many companies charge additional service fees for every billing. By paying yearly, you can save around $20 to $50 each year. You may also ask your insurance company what discounts they offer. For instance, taking supplementary driving courses to help you drive more efficiently may give you 15 to 20% discount. That is a lot of money especially if you add them up in your monthly or quarterly billings. You not only get low cost car insurance you also refresh your driving skills as a bonus.