When shopping for car insurance, you will find that there are almost countless companies, policy types, options and levels of premium rates available. So, in order to make your search for a car insurance policy as productive as possible, you will need to know how to shop, what to look for and how save money. So, here are few tips to help you better shop for car insurance.
Purchase Coverage Appropriate for Your Income
When choosing a car insurance policy, choose protection levels and policy limits appropriate for your own financial situation. For instance, if you live on a fixed or low income, choose policy limits that allow you to save the most money on your car insurance rates. On the other hand, if you earn a considerable amount of income, you should consider policy limits that are much higher than legally required minimums.
If you're involved in a major accident, and found to be at fault, inadequate coverage may result in you being responsible and liable for any amounts not covered by your car insurance. If you earn a considerable income, you make yourself a target for lawsuits and litigation when you don't have enough coverage.
Always Compare before You Renew
When it’s approaching time to renew a car insurance policy, don't simply assume that your car insurance company will continue to give you a good rate. Before you renew your policy, request policy quotes from several other companies. Also, inform your insurance agent that you are again price shopping for new policies. This may motivate your insurance agent to provide a quote that is as low as possible in order to avoid you going to a new company.
Ask Your Homeowner’s Insurance Agent
If you own your home, you should always ask your homeowner's insurance agent if the company sells car insurance as well. By purchasing your car insurance policy from the same company that underwrites your homeowner's insurance, you will almost always save a considerable amount of money. Most insurance companies will offer you a 15% to 30% discount if you insure both your home and car with their company.
Always Check for Discounts
Although this tip seems kind of obvious, many people simply neglect to ask for discounts when shopping for car insurance policies. Don't always assume that the agent will offer you every discount available. For example, if you don't drive very far to your place of employment, ask the agent about low mileage discounts. Also, make sure that you receive any multicar discounts or safe driver discounts that you may be entitled to.
Consider Pay as You Drive Insurance
If you don't drive your car very far or drive it very often, you may want to consider pay as you drive car insurance. Although the coverage is not yet available in all states, you can save a lot of money with this type of coverage. Pay as you drive car insurance rewards drivers that don't drive a whole lot with lower car insurance premiums. This type of insurance is based on the actual number of miles you drive. So, the fewer miles you drive, the more money you'll save on your car insurance.
Reduce Coverage for Older or Cheaper Vehicles
If you own an older vehicle or one that's not worth a whole lot of money, and still maintain full coverage insurance on the car, you're probably spending more money on car insurance premiums than the vehicle may be worth. Reduce the full insurance coverage to liability coverage only and simply pay for repairs or accident damage as the need arises. You'll probably save enough money in a year or two to replace the vehicle if there's a problem with it.