Car insurance is one of things that you wish you didn’t have to pay for but are glad you have when you need it. With all the options out there, it can be overwhelming when you’re shopping for a policy. Here’s a list of ten things you should know about car insurance that could save you money, even if you already have a policy in place.
Always shop around for the best quote
Most people think that all insurance companies pretty much charge the same amount for their policies, and that any variation must come from either the driver’s record (see below for a tip on that) or from different features of the policy itself. This is not necessarily so.
The reason different insurance companies charge different rates for similar policies is because different insurance companies assess risk in different ways. Where you live, what kind of car you drive, your driving record and even your age all come into play. Because each company has had different experience with claims and losses from previous clients, the rates can vary widely.
Maintain a clean driving record
Your driving record is the primary factor that insurance companies use to determine your premium. Accidents and moving violations can stay on your record for years and both of them will cost you in a higher premium.
Increase your deductible
Generally speaking, a higher deductible means a lower premium – it means that much less money the company has to pay out in the event of a claim. The caveat here though is that you have to be prepared to pay that higher deductible should you get into an accident.
Analyze your policy and adjust if you can
Depending on the type of car you drive, you might be carrying more insurance than you actually need. Call your broker and have them go over your policy. See if there’s any areas where you can either reduce or remove unnecessary coverage.
Be aware of how insurance brokers work
The reason why you yourself should be the one shopping around for your policy is because your insurance broker literally can’t shop around at as many companies as you can. Insurance brokers typically only represent a handful of insurance companies and as such are only allowed to offer policies from those companies alone. Insurance agents are even more limited: they can only offer policies from the one company that they work for. To make sure you’re getting as wide a swath of quotes as you can, do the legwork yourself. These days, getting an insurance quote is as easy as going online. Companies like http://www.belairdirect.com have excellent sites set up that make getting a car insurance quote easy.
Ask your agent for a discount
The worst thing that could happen is that they say “no”. A couple of ways you can angle for a discount is to (again) have a clean driving record or installing an anti-theft device.
Ask about accident forgiveness coverage
For some extra cash added to your monthly bill, some companies offer accident forgiveness coverage, which protects your premium from an increase in the event of a car accident that is your fault. Granted, no one makes plans to get into an accident, but if and when it happens, the extra monthly charge could save you thousands in an increased premium.
The bottom line is, there are many different options out there offered by many different companies. And not every company is the same. Take your time and do your homework when shopping for car insurance quotes and you can ensure that you get the best rate you can get for your particular situation.