No one wants to spend more than we need to for car insurance, but it isn’t always obvious how to get lower rates. Dozens of car insurance companies, large and small, are vying for your business. Many have an amazing assortment of policy options, making it hard to compare policies and figure out which is the best and cheap car insurance.
Section 1: Finding a Cheap Car Insurance Company
Obtain and analyze the list of automobile insurance carriers in your area.
Some people set a price limit before they submit an application to an insurance company. Others don’t limit their rate search at all, because they know they’ll never receive quotes that low. The best thing to do is to limit your search. After you have reviewed the list, check back periodically to see if any of the insurance carriers have lowered their rates.
Find out if the premiums for your policy are dependent on the age of your car. Look at the annual rates and ask if the lowest fee is dependent on the car’s make, model, year and number of miles. Most insurance companies request a 5- to 10-year depreciation cycle.
Get copies of the service contracts and terms of service.
What to look for in a company
When comparing car insurance companies, it is important to avoid the trap of believing that every insurance company is the same.
The key is to look at these three points:
1. Expenses: Does your company’s average loss cost compare with the industry average? Does it offer low premiums based on this?
2. Rates: How many years’ worth of coverage does the company offer? If your car is used, is the policy transferable? Is the level of coverage you want based on your driving record?
3. Premium Options: Is the company’s collision deductible capped? Is the deductible for injuries that occur before a certain age based on a percentage of the premium? How easy is it to transfer your policy?
Ask about the details
Understand how the company will provide discounts.
How to compare policies
Here’s how to compare car insurance rates:
Do an online search for a few key phrases, like “cheap insurance,” “cheap auto insurance,” and “cheap car insurance quotes.”
You’ll need to conduct an online search for a few key phrases, like “cheap insurance,” “cheap auto insurance,” and “cheap car insurance quotes.” Conduct the comparison online. There are numerous free online car insurance comparison websites, all available through the same insurance companies. Don’t be discouraged when many of them don’t have the same offers as others. The company is simply trying to sell its service. If you’re not happy with what you find, you can always try the company directly. Get quotes from several insurance companies . The lowest rate you can get isn’t the best.
Understanding the value of discounts
A car insurance discount can lower your annual premiums by anywhere from 5 to 100 percent. That can mean thousands of dollars of savings over the life of your policy.
If you think you’re getting a discounted rate on your car insurance, you can receive a copy of your insurance policy. Open the policy and locate the line that says “discount” or “premium exemption.”
Find the line that says, “Your policy is priced at an initial rate that is excluded from this discount.”
That discount can then be used to lower your premium. Read the fine print to learn the exact terms of the discount, which might include when and how long the discount is in effect.
Also, consider the discount when you choose an insurance company.
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