Which Car Insurance Is the Cheapest?
If you are reading these lines, it is probably because you searched “which car insurance is the cheapest?” on Google. The answer to that question is not a straight one. The cost of your car insurance premium depends on several factors such as where you live, your age, your gender, how many years you have been driving, your driving record, your claims history, previous insurance coverage, what type of car you use and how often you use it, and more. The price you have to pay for your car insurance starts out with a base rate, and the factors mentioned above and others are taken into account to adjust what you end up paying.
There are probably thousands of companies providing auto insurance which can turn looking for the best value a nearly impossible task.
That being said, there are ways you can ensure you purchase the cheapest car insurance you possibly can for your specific situation and needs. Here is some information that will help you ensure you get the right coverage for you at the best possible premium rate.
Don’t assume X or Y company has the cheapest rates just because the TV or the Internet told you so.
As with everything related to making a purchase, the only way to make sure you are getting the best value is by looking into different stores –in this case, insurance companies. Did you notice we used the word value and not price? That is because you may think you are getting a cheap policy but when you look at the coverage, it can turn out to be not that cheap after all. Make sure you are getting your money’s worth by comparing different insurance companies, different policies from the same company, and evaluating what and how much you are covered for versus what you’ll be expected to pay.
Maybe you didn’t know this, but you could get a discount on your car insurance premium
Many insurance companies offer different types of discount so it can’t hurt to ask. Ask your insurance broker or agent if you can get one if, for example:
- You get both homeowners and car insurance policies with the same company.
- If your driving record is flawless.
- If you pay the premium in a single installment instead of monthly installments.
- If you have more than one vehicle and want to get insurance for all of them.
- If your car is equipped with anti-theft devices.
- If you are a member of a certain organization or if the insurance company has an agreement with your employer.
Did you know that your credit score is one of the factors that insurance companies use to determine your premium?
According to the National Association of Insurance Commissioners, insurance companies factor this in because a correlation has been shown between this score and the probability of filing a claim.
Some states limit the way insurance companies can use this data while others have completely banned the practice. Check where your state laws stand on this matter.
The higher the deductible, the lower the premium
This only applies if you are interested in getting collision and comprehensive coverage.If you choose a higher deductible, you can save money on your premium rate.
There are car insurance groups
This is another factor that plays an important role when insurers determine what your premium rate will be. So, if you haven’t bought a car yet, or are thinking about buying a new one, ask an agent or search online for this car insurance groups to learn which ones would be cheaper to have insured. Here is a list published by Forbes last year.
If you have an older model, collision and comprehensive coverage might be throwing money down the drain.
These complementing policies payout is limited to the value of your vehicle if it is stolen or totaled. An old car might not have such a high market value, and therefore, these types of policies may not be worth purchasing.