Choose the Right Car Insurance For You with These 7 Tips

In most states in the U.S., drivers must have a car insurance policy in order to legally drive a vehicle. In fact, you cannot even register a vehicle unless you can show proof of insurance. If you allow your policy to lapse, you risk having your registration suspended. If you are pulled over and you don’t have proof of insurance, you can get a ticket and a fine. In some cases, your vehicle will be towed. If this happens, you won’t be able to retrieve your vehicle without proof of an active insurance policy.

With the high cost of gas today and the cost to maintain your vehicle, the cost to own a vehicle can be high. This is why it is important to save money wherever you can. Fortunately, you can save money on car insurance. There are a few tips that you can follow so that you can be sure that you find the right car insurance policy with the lowest premiums.

1 Check the Rates Of Different Policies Each Year

Whether you pay your insurance premium monthly, every six months, or yearly, it is a good idea to check the rates from different companies every year. It is not uncommon for your situation to change as the year goes on. Also, as different companies compete with one another for your business, their rates can change. There are a few different ways that you can check the rates from various companies. First, you can compile a list of the major auto insurance companies and either contact them directly or get a quote online. If you feel that this would be too time-consuming, you can use a comparison service called My Choice Car Insurance. When you use this service, you would simply enter your information into the system. This would include your personal information, information about your vehicle, and any speeding tickets or accidents within the last three years. The system will use this information to check the major insurance providers to give you a quote from each. This will save you the time of contacting each insurance provider on your own. Most comparison tools will compile a quote from several of the top insurance companies in your area. In some cases, the quotes that you get won’t be the exact amount that you would be required to pay. When you go ahead and purchase the policy, you may find that the amount of the insurance will be slightly higher or lower than the quote you are given. This is because you will be required to supply a bit of additional information when purchasing the policy. Oftentimes, however, you will be given a quote that is exact or just a bit off.

2 Pick a Top Rated Insurance Company

Just because a company has the lowest premiums, it doesn’t mean that they are the best overall. There are other things that you should consider such as how fast they handle claims, how much they will raise your premium if you are in an accident, and how they deal with non-claim issues. There are online review websites where you can read reviews from actual customers. This will give you an idea of how they handle these issues.

3 Maintain Good Credit

Most people know that in order to get a mortgage, a credit card, or a loan for any reason, you need to have good credit. What you may not know is that your credit score can also affect your insurance premiums. There are several car insurance companies that require you to give your social security number so that they can run your credit. This can affect what the company will charge you for your insurance. Before renewing your insurance policy each year, it is a good idea to check your credit to be sure that there are no errors on your credit report. If you have been able to significantly raise your credit over the course of the year, you should contact your insurance company and let them know. if you are working with a company that takes your credit score into consideration, your improved credit score can lower your premium for the upcoming year.

4 Choose The Right Deductible

When buying an auto insurance policy, you will be able to set your own deductible. This is the amount of money that you would need to pay in order for the insurance company to pay out of pocket for your vehicle repairs if you are involved in an accident. The higher the deductible you choose, the lower your premiums will be. If you have a good driving record and you have never been in an accident that you caused, you should consider choosing a higher deductible. This can save you up to 40 percent on your insurance premiums. If you aren’t the best driver and you have caused accidents in the past, you may want to choose a lower deductible. This will cost you less out of pocket if you do cause an accident.

5 Review Your Coverage

When you are getting quotes from various companies, they will give you the cost of the coverage that they think is best. The coverage that they think is best, may not be what is best for you. If you are a good driver and you are not making payments on your vehicle or leasing your vehicle, you can go with the minimum coverage according to state law. You should understand that minimal coverage means minimal protection, therefore, you should lower the amount of coverage at your own risk.

6 Report Reduced Mileage

One of the things that auto insurance companies look at when giving you a quote is how much driving you do. One of the questions asked is how many miles you drive to work or school. Insurance companies assume that the more driving you do, the higher the chance that you will be involved in an accident. If you recently changed jobs and you are now working closer to home or if you are currently unemployed and you are not driving back and forth to work, it is a good idea to let the insurance company know. Now that you are not driving as much, it can lower the cost of your premium. The same is true if you have graduated from school and are no longer commuting.

7 Report Your Personal Status

If you were recently married and you weren’t when you bought your auto insurance policy, you should contact your insurance provider to let them know. This is because your marital status can affect the cost of your insurance. Most auto insurance companies believe that married couples are less likely to be involved in an auto accident, therefore, they offer discounts for married couples. Getting married may not save you a fortune on insurance, however, getting married can lower your premiums a bit. At the end of the day, saving a little bit of money is better than saving no money at all.

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