Finding the best car insurance deal is no easy task; many people end up paying more than they actually have to. Numerous factors play a role in the overall price of an insurance policy. Things like driving history, age, gender and the make and model of the vehicle to be insured are all analyzed by insurance companies in an attempt to determine how risky writing a particular policy will be.
Shopping For the Best Car Insurance Deal Online
These days, almost every auto insurance company provides quotes for free. This can be done in person, over the phone and on the Internet. In order to get the best deals, people need to obtain a good number of quotes. This can be an agonizing and time-consuming chore, but in the end will result in a much better deal. By obtaining an ample amount of quotes, policy seekers can come up with the average cost of the policy they’re looking for.
When getting a quote from an insurance company, extensive personal information will be gathered. This includes name and address, social security number, vehicle information and driving history. Failure to provide accurate information will result in a misquote. All information, particularly driving history and accidents, is investigated and verified by the insurance companies.
Additionally, people need to decide how much coverage they need and can afford. Quotes from different companies should all reflect the same coverage limits. This way, companies can be more accurately compared. The more identical quotes obtained the better chance a driver has of finding the best deal available.
What Causes Spikes in Auto Insurance Premiums?
Certain aspects, some which are completely unavoidable, are known to cause spikes in car insurance premiums; being young is one of the biggest. Drivers under the age of 24 are considered riskier than are older, more experienced motorists. This is especially true for males. Males under the age of 24 will have the hardest time finding the best deal car insurance, especially those with compromised driving records.
Driving history might be the key decider in overall price. Drivers with tickets, accidents and previous claims can expect to pay more for their insurance than people with clean driving records. Drivers who have been cited for driving under the influence take a huge hit. Usually, these drivers will be required to carry high-risk insurance, which is far more expensive, for several years following the offence.
The make and model of the vehicle to be insured is also taken also helps determine policy risk. Powerful vehicles with large engines and rapid acceleration are thought of as riskier than 4-cylinder daily drivers. Because of this, young people with these types of cars are in for a struggle when looking for the best car insurance deals, even if their driving records are clean.
Cutting Car Insurance Costs
Although people may not be able to control factors like their ages or driving histories, there are a few things they can do to appear less risky to insurance companies. For example, people who trade in riskier vehicles for low-power sedans will notice an immediate decline in the cost of their insurance. Getting quotes for different vehicles will give people an idea of how much they could save by changing cars.
Also, some insurance companies will reduce the cost of a driver’s insurance if he voluntarily participates in a safe-driving course. These courses usually last for about eight hours. Ironically, they’re the exact same courses people take when they receive citations for running red lights or driving aggressively. These courses usually cost around $100.00 and can cut insurance costs by up to twenty percent.
More Ways to Get Lower Prices
Another way to get a lower price is looking for a car insurance deal for 2 cars or bundling multiple vehicles under the same coverage. When you get multi car insurance, you have a way better chance at lowering the cost per car on an insurance policy. If you driver two different vehicles, it obviously makes a lot more sense to get them insured under the same policy through the same insurer; you’ll definitely save more money. If you are married, make sure that you and your spouse get a joint car insurance policy to further save.
Also, paying for an entire six-month policy (e.g. car insurance for 6 months) up-front will likely result in a lower price than making monthly payments; think of it as buying in bulk. Some insurance companies offer discounts and premium reductions as an incentive to drive safely. When choosing a company like this, it’s important to know exactly what kind of discounts are being offered; companies like these aren’t necessarily the most affordable and the discounts may not be worth the cost of the policy.
Insurance companies are competitive and rates can vary wildly from one company to the next. The more quotes a buyer obtains, the better his chances of finding the best rate. A wide range of factors contribute to the cost of auto insurance; age, driving record, type of vehicle, accidents and prior claims can all cause spikes in a policy’s cost. Switching vehicles and participating in safe driving courses can help make car insurance more affordable.