Whether you’re a new driver or you’ve been behind the wheel for years, knowing the cheapest way to get car insurance is something that interests everyone. Before you start gathering quotes for a new insurance policy, you should be aware of some of the ways to get the cheapest possible monthly premium for the coverage you need. This article will cover:
- Shopping around.
- Requesting discounts.
- Keeping a clean driving record.
- Improving your credit score.
- Setting your deductible.
- Paying for the coverage you need.
- Looking into other types of insurance and coverage.
Shopping around to get the best possible rates is a great first step to getting car insurance that fits your budget. The internet is a great resource that you can use to get several basic quotes within a short amount of time. Independent insurance agents are also a wonderful resource, especially for those who want more personalized service. They usually work with more than one insurance provider, which means more options for you. Investopedia recommends getting new car insurance quotes every two years to ensure that your rate remains competitive, while Compare.com suggests reviewing your policy every six months.
Most car insurance companies offer discounts based on a variety of factors. NerdWallet lists some of these criteria as the following:
- Insuring more than one vehicle on the same policy.
- Bundling multiple types of insurance together.
- Opting for paperless billing.
- Paying your premium either six months or a year in advance.
- Having certain safety features on your vehicle.
Before you determine your final monthly premium, make sure you ask about any of these discounts or others offered by your insurance provider. If you meet the required criteria, these types of discounts can save you money every month.
Keeping a Clean Driving Record
If you haven’t received a moving violation or been involved in an accident recently, your insurance company may be willing to offer you a better deal on your premiums. According to The Balance, safe drivers get some of the cheapest car insurance rates. Of course, it will depend on your particular insurance provider as to what is considered a safe driver; however, having a clean driving record will almost guarantee that you qualify for some sort of discount. Not submitting a claim to your insurance company is another way to keep your driving record clean for a better rate.
Improving Your Credit Score
Although a few states don’t allow insurers to use your credit score when setting your premium, most can and will use this metric. So, if you’re looking for a cheap way to get a better rate on your car insurance, improving your credit score is a good place to start. Credit Karma explains that many surveys show a correlation between making insurance claims and having bad credit, which is why those with good credit scores get better rates. Most insurance companies look at things like:
- Your payment history.
- Length of your credit history.
- What type of credit you have now.
- What type of credit you’ve had in the past.
With this information, an insurance company will decide how much of a liability they consider you to be and set your premium accordingly. Keeping up on your debt payments and reducing how many lines of credit you have open can help you get cheaper insurance rates.
Setting Your Deductible
Your car insurance deductible is the amount you have to pay before insurance kicks in when you make a claim. While your insurance provider probably has a default amount for the deductible, you can decide on the amount you want this to be. If cheaper insurance is your goal, you’ll want to set your deductible at a higher rate. However, make sure this is an amount you can easily cover on your own if an accident does occur.
Additionally, it’s important to note that when you have liability coverage only, you won’t have a deductible because this type of insurance only covers the other people involved in an accident where you are the at-fault driver.
Paying for the Coverage You Need
If you have more than one vehicle, you could consider lowering the insurance on the one you use the least. On the same note, when you have a vehicle that you aren’t driving at all or plan to store for a month or more, consider dropping all coverage for that vehicle. Make sure you talk to your insurance company about this to ensure you aren’t penalized for canceling your policy.
Other Types of Insurance
While liability and comprehensive are some of the main types of insurance coverage you can get, other types of insurance are out there that can be ideal for certain drivers and in some special circumstances. If you don’t drive many miles each year, you might want to consider allowing your insurance company to install a device that keeps track of your mileage.
When you have this device installed, you can go by what’s referred to as pay-per-mile coverage, so you’ll only be paying insurance for the miles you drive. The savings you receive will depend on which insurance provider you use, but it can be worth it for drivers who don’t spend much time on the road.
If you do spend a lot of time on the road, another thing you can do is review the types of coverage on your policy. Sometimes, you can get rid of coverage you don’t need, such as car rental or windshield replacement. If you have an older vehicle, you may be able to get rid of comprehensive coverage. When your vehicle reaches a certain age, this type of coverage is no longer worth it, as your vehicle’s value is less than what you’re paying each year to retain the coverage.
These are some of the cheapest ways to get car insurance that fits your budget. Using this guide, you should be well-equipped to start shopping around for the insurance coverage you need at a price you can afford.
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