We have been told a million times that if we want to save money on auto insurance, we do not need to settle right away to the first company we come across with. To do that, all you need is a little time, patience, and your desire to get cheaper rates.
When we say auto insurance comparison-shopping, we mean that you have two or more insurance quotes at hand that you can compare and contrast in terms of coverage and prices. If you do it online, you would not have any difficulty in doing so because there are literally tons of insurance providers ready to furnish free insurance quotes at any time of the day. All you need to do is to fill out their online form, and in a matter of minutes, you got yourself the insurance estimates delivered in your inbox right away.
Once you have the insurance quotes with you, the next question would be, are you going to select the cheapest rates, or better yet choose the one that will provide you with a full protection? In reality, you should not use the price alone to determine the type of insurance coverage that you are going to purchase.
The company’s reputation and reliability
Car insurance is not something you need to think about each day. However, in case of an accident, I am sure that you will think about it very deeply. This is the reason why the company’s reliability and customer service are essential characteristics because this will matter as soon as you’re filing your insurance claim. Therefore, it is best to spend a little time researching about a potential company by visiting online forums, asking your friends, or checking the company with your local BBB. If the company has more negative issues than positive ones, it is best to steer clear than be sorry later.
The amount of coverage that you need
Common sense would tell us that the more coverage you need, the higher the premiums would be. It is as simple as that. There are no hard and fast rules about insurances, but if you loaned your car it is best to protect it with a full coverage policy. On the other hand, if your car’s worth is already less than $1,000, consider dropping the full coverage and instead use the liability policy required by your state. This will save you a bunch of money, which you can set aside, ready to be used for your other needs.
The amount of deductible
Another important point to keep in mind if you are comparing auto insurance rates is the amount of the deductible. In theory, the higher the deductible, the cheaper the premium rates. By the way, deductible is that amount that you are going to pay yourself before the insurance company kicks in.
Policyholders looking for ways to make your insurance cheaper would usually end up raising their deductible. For instance, a 50% price cut is possible if the policyholder would increase a $250 deductible to $1,000. Again, talk to your insurance provider how much savings you will get if you increase your deductible to a certain amount.
While it is true that increasing your deductible will reduce your insurance premiums, you should always keep in mind that being unable to pay for that particular amount will give your insurance company the chance to void the whole contract, and you end up paying the whole cost of the accident. Accidents do happen, so make sure that you have enough money left to pay for your own repairs, and not everything goes to cover the deductible.
