It is a fact that insurance rates are continuing to rise each year, which makes sense to look for ways to save money on insurance rates by choosing coverage that is within your budget range. So how do we exactly do this? What are the things that we need to understand or look into to be able to know that this particular type of coverage is good for us? Actually, we have identified four factors that you might want to consider when deciding for your affordable auto insurance policy.
Choosing between direct insurer or insurance agent
Direct insurer means that you do not deal with insurance agents but instead buy the policies directly from the insurance provider. For many years, we have relied on insurance agencies or agents who carry multiple types of insurance from home, auto to life insurances, and expect them to deliver these policies to our doorsteps. Depending on your preferences, you might want to choose a direct insurance company instead of insurance agents if your goal is to save money. It is relatively cheaper because of the absence of intermediaries. However, many people would agree that customer service representatives from these big companies often lack the personalized service they get from their insurance agents. And, since many of today’s insurance agencies also offer discounted rates, this stops most people from jumping to direct insurers.
Full Coverage and Liability-only Coverage
Another way to save money from your insurance is to know how much coverage you really need. If you loaned the car or made some other types of loans to purchase the vehicle, the best way to protect your investment is to use full coverage insurance. On the other hand, if the value of the car is less than $1,000, or it is already fully paid, a liability only policy may suffice. Additionally, ask yourself if you have enough money to cover any unforeseen expenses in case of an accident. Most of the time, your willingness and capacity to pay for these damages will help you determine what particular type of coverage and amount you need.
Customer service
As a policyholder, we expect nothing less but the full support from our insurance providers. This means that you have to consider the company’s ratings, image and perceptions from other policyholders. Cheap auto insurance is almost worthless if you cannot use it anyway. Have some time to check a potential company from your local BBB (Better Business Bureau) to determine its reputation and reliability. If the ratings are not that impressive, it is best to look for another potential company or agency than to feel sorry later.
Driver discounts
Almost all insurance providers are offering the so-called “good driver discounts.” This is a sort of reward given to drivers with good reputations. It is also possible that a good credit standing or credit score will entitle you to avail of certain insurance discounts. Money saved is money earned, so make sure you ask your insurance provider if your account qualifies for some other types of discounts they might secretly offer.
