The Best Way To Find Cheap Car Insurance

LIFESTYLE

The Best Way To Find Cheap Car Insurance

LIFESTYLE

No one wants to think about getting into a car accident. Still, unfortunately, according to the Association for Safe International Travel, car crashes cost the U.S. $230.6 billion a year — an average of $820 per person. (1) If the unthinkable happens, it's crucial to have adequate car insurance that can take care of your damages and pay your costs.

Although car insurance can be expensive, you can find great deals that won't break the bank, all you have to do is a little research — and take on board these hints and tips. Here are the best ways to find cheap car insurance, and keep your auto premiums low.

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Get Your Credit In Order

Did you know that your credit score affects the cost of your auto insurance? Although this may seem strange, it's actually based on data collected by insurance companies who believe that customers who have a good credit history also tend to file fewer insurance claims — making them less of a risk.

If you'd like to clean up your credit and improve your score, the most important thing you can do is make all payments on time. Your payment history accounts for approximately 40% of your credit score, and it can drastically lower if you miss a payment.(2) It's also important to check your credit report regularly to ensure that no one has taken credit out fraudulently in your name and that the information reflected in your report is accurate. If you happen to find any erroneous information that is negatively impacting your score, be sure to report it to the credit agencies to have it corrected.

Loyalty Pays

Sometimes it pays to stay with the same provider for all of your insurance needs. For example, if you already have existing homeowners insurance with a company that you like, and at a reasonable price, you should contact them to get a quote for your auto insurance also. Bundling insurance policies together often leads to discounts, which could save you hundreds of dollars throughout your policy. This is especially important if you have more than one vehicle to insure.

In fact, according to Money Crashers, you could save as much as 10% on your policy by using the same provider for multiple policies. (3) Aside from the financial savings, sticking with your existing policy provider also tends to be a quick and straightforward process — with much less paperwork

Don't Pay Your Premiums Monthly

If you want to save money on your auto insurance, and you can afford to pay it off in a lump sum for the whole year, this is preferential to paying it monthly and can net you additional savings from regular payment processing fees.

Defensive Driving Courses

Insurance companies prefer safe and conscientious drivers, because they're much less likely to be involved in an accident, or file an insurance claim. You could save yourself money on insurance premiums by investing in a defensive driving course. This can be especially useful if you have made previous insurance claims, or have a less than stellar driving record.

Although defensive driving courses can vary in price, you can find affordable deals online, and from websites such as Groupon.

Opt For A Higher Deductible

Your deductible is the total amount of money you must pay before your insurance coverage takes over the costs. Deductibles vary depending on your insurance policy, however, typically, the higher your deductible, the lower your monthly premiums. It's essential to raise your deductible if you can afford to pay the amount required if needed. Having a high deductible can leave you in a tricky predicament if you need to file an insurance claim, but can't afford to meet your deductible.

Low Mileage Discount

If you're lucky enough to have a short commute and don't tend to drive long distances in your vehicle, it may make sense to opt for an insurance company that offers a discount for low mileage. According to the Washington Post, people who drive 5,000 miles a year pay on average, 8.4% less in insurance premiums that people who drive over 15,000 miles a year. (4) This is a substantial saving worth exploring if you're looking for cheap auto premiums.

If your mileage is particularly low, you may benefit from opting for pay-per-mile insurance. Although less common than traditional insurance policies, pay-per-mile insurance is an excellent choice for drivers who tend to use the roads only when absolutely necessary. Having this type of policy means that your premiums will vary monthly, depending on the number of miles you drive. However, it's important to remember that this is only a good option for drivers who have a set routine that requires little driving.

Compare Quotes and Shop Around

To give yourself the best chance of finding affordable auto insurance, you must shop around and get as many quotes as possible. If your renewal is coming up, be sure to start practicing good driving habits, such as maintaining a good credit score, and getting the tools in place to gain you a more affordable premium. One of the easiest ways to compare and contrast quotes is to go online. Many insurance companies no-obligation online quote so that you can decide which one is the best for you. Also, look out for new customer discounts and ask your insurance agent how you can save money on your premiums — it may be easier than you think! 

Sources: 1. https://www.asirt.org/safe-travel/road-safety-facts/, 2. https://www.creditkarma.com/auto/i/insurance-scores-affect-car-insurance-rates/, 3. https://www.moneycrashers.com/save-money-on-car-insurance/, 4. https://www.huffpost.com/entry/have-low-mileage-you-may-_b_7338458?guccounter=1

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