When you renew or purchase your next car insurance policy, here is a list of tips to keep in mind that may save you quite a bit of your hard-earned money.
Do your homework
The premiums for the exact same coverage on the exact same car will vary from company to company, and can run in the hundreds of dollars, so it really pays to comparison shop. It could save you a tidy bundle.
The quickest, easiest way to compare rates is to shop an insurance comparison website, such as http://www.LowerRateQuotes.com. Here, you’ll fill out a single form and get quotes from a number of A-rated insurance providers. You may even be able to chat online with an insurance professional.
Know Thy Coverages
Review and get to understand what coverages are available to you, as well as which ones you need, and which ones are optional. If you do not understand your own insurance needs and the coverages that can meet them, you can very well end up over-insured or under-insured.
Get an Apples to Apples Comparison
Once you have determined which coverages you need, get quotes for the exact same coverage from each insurance company. Also be sure to give the very same car and driver information to each insurer. This ensures that you get a true comparison of rates.
Get your Discounts
Find out which discounts the insurance company has to offer, and which ones you qualify for. The most commonly available discounts are for air bags and anti-theft alarms, automatic seat belts, anti-lock brakes and VIN# window etching. Some companies will give you a discount if you insure more than one car on your policy, if you insure both your car and your home with them/the same company, and if you pay in full for the policy upfront. Taking a Safe Driver course, or having your teen complete driving school may also help lower your rate
Go with a Leader
Look up and compare each company’s financial rating from A.M. Best (www.ambest.com) and J.D. Power and Associates (www.jdpower.com). These two rating organizations evaluate a company’s financial strength and its ability to pay claims.
A rating of “A” indicates a reputable and financially stable company that will pay your claim in your time of need. A cheap policy is of no use to you if the insurance company declares bankruptcy and cannot or will not pay your claim.
The single, most important way to save on your car insurance is to maintain a clean driving record. Much like your credit rating, a good driving record will always get you the very best rates any insurance company has to offer. Being a “Good Driver” will literally save you hundreds, even thousands of dollars. Go forth and drive safe!