Comparing Discount Car Insurance Companies - Things To Know Before Getting A Quote
Car insurance is a costly expense, but it's one you can reduce by shopping around. When you're in the market for new car insurance, comparing companies is a good idea. But before you shop, there are some things to consider. To help you make an informed choice about which company to choose and how much coverage you need, we've compiled a list of factors to consider when comparing auto companies. You can also think about your budget and the type of vehicle that your vehicle most often travels in.
Here are some things to consider when comparing car insurance companies:
1. Keep your driving record in mind.
When you compare car insurance quotes, you want to compare costs within your same insurance category--the same type of vehicle, driving record and other factors. The quotes that you get will be broken down by the various coverage amounts (liability limits, personal injury protection and collision) and deductibles (deductibles pay out if you're in an accident). If a company quotes a higher rate because of your poor driving history (and it's not significantly higher than your other options), it might not actually be the most suitable choice for you. For instance, if you get a less-expensive company that doesn't use your driving record when it makes its comparison, you could pay more for that company's collision coverage than you would with the higher-priced company.
2. Find out how the companies calculate their rates.
Most auto insurers use computer software to calculate auto insurance quotes. The rates that the companies send you are often based on information provided by the insurance companies and collected by their proprietary software, which models risks and attempts to estimate premiums customers might expect to pay. These computer programs might not always provide the most accurate results. Insurance companies can't guarantee that their software will provide accurate results in every case.
3. Know your personal driving record.
Your driving record is a key factor in how much you pay for auto insurance. It's important to be aware of your own driving history and how it might affect the quotes that you receive from various insurance companies. If you have multiple accidents or tickets, your rates will likely be affected and likely increase over time - regardless of what type of coverage you have or where you live. Your premium depends in part on where the accident occurred, the number of miles driven per year, and the driver's age. A ticket for speeding will usually increase your premiums more than one for running a stop sign when comparing rates from different companies.
4. Read through the fine print.
If you're trying to decide between a few different insurance companies, compare them based on the full cost of coverage--not just the rates. It's also a good idea to determine whether any given company offers discounts and incentives for safety, taking a defensive driving course or other factors that you have influence over. Also, it's good to know whether your favorite carrier offers lower rates for bundling car insurance and other types of insurance - such as homeowner's or renter's insurance - together into one package. If they offer such a discount, it could save you money if you're going to purchase both types of policies in any case!
5. Don't always choose the lowest price.
When you're comparing car insurance quotes, don't always go for the lowest price. Remember that the lowest price might not provide you with the best coverage if one company's coverage offers more coverage at a lower cost. Do your research and find out what different companies offer in terms of coverage and services for each specific type of policy. When making a choice, consider what will be important to you and your needs in an insurance company, not just that you have chosen the cheapest option available.
6. Know what kind of discounts are available to you.
Look into possible discounts before getting car insurance quotes or policies from any company--especially if you're looking for inexpensive car insurance. You may be able to get an insurance discount by avoiding driving during specific times (such as late at night), by taking a defensive driving course, or by doing other things that prove you're a responsible driver. As a general rule of thumb, discounts are easier to obtain if you combine your car insurance with one or more other types of policies, like life and health insurance. If you can do this, you'll not only save money on your auto policy, but get discounts on all of these policies as well.
7. Consider the overall cost of the policy.
When comparing car insurance companies and their quotes, it's important to consider not only the cost of coverage but also the premium payments. Some insurance companies charge relatively low monthly premiums with higher overall costs (e.g., a $100 premium per month with a deductibles of $2,000). By paying for more coverage or for higher premiums, you could save money in the long run.
8. Know your deductible before choosing a company.
If you choose a high-deductible policy, know that you'll pay more for car insurance than if you had chosen a lower deductible--and that if your car is involved in an accident and it's fully insured but your deductible is not met, you may not be able to recover the full cost of the vehicle repair or replace it entirely.
9. Work with an insurance agent to get the best coverage and best price.
Be careful when selecting a car insurance agent because many will encourage you to choose a low-cost company over a higher cost one. This is especially true if the agent has access to a pool of auto insurance customers that provides him or her with access to lower rates than other agents who might not have access to this lower-cost pool of customers. Before choosing your agent, talk about how these advantages would affect your coverage and costs, and be sure that your representative will be able to offer you a range of options (including selecting your own carrier if you live in an area where there are few carriers offering the right coverage).
Conclusion
Finding cheap car insurance is fairly easy if you understand how car insurance companies work and what factors determine how much your monthly premium will be. By understanding how to maximize discounts, choosing the right type of policy, and looking at more than just the price of a policy, you can find the best deals on car insurance coverage. Remember that every auto insurance company has a different deductible, so make sure you know what that is before you sign up for any policy. Also, be wary of quotes without clear comparison data!
When comparing car insurance quotes online, it's important to look carefully at two things: 1) the actual cost of each quote (i.e.