Needless to say, the economy is not at its strongest right now. Therefore, more and more people struggle to cope with many household and monthly expenses. One of these costs that takes a heavy toll on people’s pockets is car insurance. Everyone wants cheap car insurance, but studies have shown that most people stick with their “regular” insurance company, instead of looking around and finding the lowest price. Not finding the cheapest auto insurance plan can cost you hundreds of extra dollars a year. In such a tough economy, wouldn’t you rather pocket the extra hundreds of dollars? Surely most people would.
There are quite a few ways one can get cheap car insurance, regardless of what company you’re currently with or your driving status.
Shopping around
First and foremost: compare car insurance prices. You need to look at multiple companies and get as many quotes as possible. This is the only way you will be sure that you have obtained the best car insurance plan possible. However, one thing to keep in mind is that you should not compare good and bad insurance companies. Compare like and similar auto insurance companies. Just because you’re looking for a cheap plan doesn’t mean you should look for a bad plan. Ask the insurer questions and look at their financial history and stability. The last thing anyone wants is to sign on with an insurance company that doesn’t keep their word for the long haul.
Find special discounts
Since the auto insurance field is very competitive, companies tend to have special offers, often discounts for drivers. If your driving record is good or you have taken certain driving programs, a discount may be available to you. You may also be eligible for discounts if your car has anti-theft or any other security features. Lastly, discounts are often available for those with low mileage vehicles.
Choose a higher insurance deductible
When a claim is filed, the deductible is the amount you pay before the insurer pays the remaining balance (for repairs and such). People tend to opt for lower deductibles in order to have lower out-of-pocket costs when they have to file a claim. However, looking at things from another perspective, it’s fair to say that the higher your deductible, the lower your premium will be.
Lower coverage on older vehicles
For those with older model cars, it’s a good idea to reduce the collision and/or comprehensive coverage on your policy. For example, if your car is worth less than the cost of the deductible, it may not be worth getting a high-coverage plan. So the older your car is, the cheaper insurance you can usually get (although, keep in mind that older cars have a higher risk of breakdowns and such).
Whether you’re a teen or an adult, it’s still possible to get cheap car insurance. Sure, a teen will likely have to pay more than an adult, but either way, there are ways to minimize insurance costs. Don’t pay unnecessary amounts of money for insurance; in other words, don’t make hobbyist mistakes that can be avoided by simply reading and comparing.