If you are looking to get the cheapest possible auto insurance there are several factors that come into play. You can no longer simply depend on your agent to get you the best rate on a policy. These days a computer is most likely going to calculate the rate that will be offered.
The first factor that is used is your driving history. Anybody that has a poor record with several incidents of being written up for accidents or violations doesn’t have much of a chance at a good rate.
However, these accidents will go away over time.
The bad thing is that it can take up to 3 years before this can take effect for most drivers. But there are also some steps that can be taken if the ticket was for a major violation and they can help to mitigate the anticipated rate increase. Most insurance companies look favorably upon defensive driver courses. Many times you can find these offered for free and this can help to lower an insurance rate by as much as 20%
Donating time and effort to a charitable cause is another way to lower a premium. This may seem strange, but studies have shown that people who spend their time with a charity are less likely to be speeding in their cars or behaving in such a manner as to receive a traffic ticket.
There is no reason not to obtain a quote from another company for a better rate. As a way to reduce their risk, many insurance carriers try to make their customer database as widespread as possible. This even extends to the type of car that you drive. In point of fact, red sports cars receive a higher premium because they tend to be in more accidents than any other color.
This is definitely something to consider no matter what insurance provider that you intend to do business with. It pays to check with at least three different companies to see who is giving the best rate. Nowadays, you can do this on the Internet by checking in with a comparison site that will automatically do the calculations for you.
Everybody who owns a car is looking for the lowest possible insurance premium that still provides adequate coverage. When approached correctly, this process doesn’t have to be painful at all.
Probably the hardest part for any consumer is wading through all of the hype that is currently being advertised and finding a policy that makes the most sense for their situation. You don’t have to take the first offer. If more drivers shopped around, insurance rates would definitely go down. That is just how the market works.
Insurance companies will play cut throat with each other, trying to get your business. But most people won’t take the time to do their own due diligence and take the first offer that is given them because they don’t have the time or energy to do the research.
If you play hard to get, you are more likely to get some special discounts from your provider. These can be for such things as a safe driving record, age rewards or the kind of car that you drive. This doesn’t mean that all of the insurance firms will offer these kinds of reductions. You need to focus on the kind of coverage you have first before seeking discounts on the premium. When the basic premium rate is the same, it may come down to discounts on the policy. Again, the aforementioned defensive driving course may increase the discount rate.
Another thing that can be discussed with your provider is reducing the coverage if your vehicle is an older model. This may be readily accomplished through eliminating collision or comprehensive coverage. For an older car, it may not be necessary to have this extra coverage.
An alternative way to reduce the amount of premium that you pay is to ask for a higher deductible. This is simply the amount of money that has to be paid out of pocket before the insurance company begins to provide coverage. A deductible that is higher means a premium that is lower.
Automobile insurance is extremely competitive and you can’t depend upon your agent to look out for your best interests. It is quite easy to check out and compare policies from the comfort of your arm chair. Remember, only you will look out for your best interests.