You've shopped around to find the best deal when buying a car. So why not find ways to save on auto insurance and find the best coverage for you?
Learn how your deductibles can affect your auto insurance rate, plus other ways to save money, while also ensuring that you're not sacrificing quality to save on auto insurance.
You've made an investment in your vehicle and want to ensure it's protected without hurting your pocketbook. Being an informed shopper will empower you to find the right auto insurance company and policy that fits your needs and budget.
Here are some tips to help you save:
You'll pay less if you have good credit.
Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. For this reason almost all insurers pull your credit report. Your credit report also shows an insurer if you pay your bills in a timely fashion and have had the same credit accounts for a long time. Someone who does this is considered more stable than someone who pays late and frequently opens and closes accounts. This information is used to create your "insurance risk score," which is one factor that determines your auto-insurance rate.
Tip: Your insurance-risk score is similar to your credit score. If your credit history is not strong, start cleaning it up. If there is unusual credit activity on your account, wait about a month for it to return to normal before shopping for auto insurance quotes.
The type of car you drive affects your premium.
Insurers have a rating system for every car make and model. Most use a system devised by the Insurance Services Office, which starts with the cost of the vehicle and then factors in safety and theft data. Cars are given a rating from 1 to 27, and the higher the number, the higher your premium.
Tip: You can look up your car's relative risk online. Before buying a new car, call your insurance company and ask about the difference in premiums for the car models you're considering.
Pay your insurance premium in full you can avoid installment fees.
"Fractional premium" fees are usually charged when you pay your annual premium in six-month, quarterly or monthly installments.
There is almost always an administrative fee to break down these payments also. This can really add up.
Tip: Ask about fees for paying in installments. If the fees are small enough, it may be worth it.
Leaving your laptop in your car isn't covered.
Stolen or damaged personal items aren't covered by your auto insurance policy.
Tip: You can file a claim on your home insurance. Most home-insurance policies will cover smaller, less expensive items. If you carry expensive items in your car such as computer equipment, ask about a rider to your home-insurance policy. It'salways wise to take photos of any expensive personal items before they go missing.
Learn how easy and convenient it is to save on auto insurance can be. Get your free auto insurance quotes today!
