You should shop your auto insurance at least once a year. And when you do your insurance comparison be selective and wise.
It may be unwise to always go for the cheapest auto insurance. You may want the cheapest auto insurance, but you may be better off looking for reasonably priced versus the cheapest; and definitely look for excellent service. If you are looking for the cheapest auto insurance, the service may suffer, so be careful.
Be selective when shopping be choosing reputable insurance companies to work with. Sometimes a referral is the best way to find a reputable insurance company.
Let’s review other ways for you to find the cheapest auto insurance.
The Cheapest Auto Insurance
Tip # 1 – Raise Your Auto Insurance Deductible
- If you carry high insurance deductibles, you reduce the exposure of the insurer. By reducing the insurance company’s possibility of having to pay a claim – they in turn can reduce your premiums.
- Have the insurance agent run quotes for you using different deductibles.
Tip #2 – Reduce Your Insurance Coverages
- Another way to get the cheapest auto insurance is by reducing your car insurance coverages. When possible, you may want to eliminate some of your coverages.
- For example, if your car is older, two coverages you may want to eliminate are the comprehensive and collision coverages. You want to keep your liability coverage; besides it’s the law that you carry liability coverage.
- Towing and car rental are not always necessary coverages – you may lower your premiums by eliminating towing and car rental coverages.
- Have the agent run different quotes with different coverage limits; you may be surprised on the different premiums.
Tip #3 – Take Advantage of Discounts
- All insurance companies offer discounts; some offer more than others.
- Insurance companies want to reward good habits.
- Be sure to ask the insurance agent to include all of the discounts that you qualify for when they are preparing a quote for you.
- Some of the discounts you may want to ask the agent about include: clean driving record, low annual mileage, multi-car, good student discount, home/car discount, life insurance discount.
- Auto insurance companies do offer discounts on your auto insurance and your home insurance if you insure both with them.
- High claim activity, even if the claims are never your fault, can result in higher premiums.
Work with your insurer on creating the best plan for you that fits within your budget.