There are 225 million licensed drivers in America.
As the U.S. population continues to balloon, that number continues to expand.
If you’re about to join the ranks of the millions of other drivers in the country, congratulations! Before you start cruising through town, though, you’re going to want to learn how to insure a car at the best possible price.
Car insurance providers offer vastly different rates that are based on several factors. Keep reading to learn how you can leverage that to your advantage and score the best deals.
Shop Around
The single most valuable way to insure a car at the best price is to shop around.
There are countless amounts of insurance providers that compete in today’s market. All that competition means wonderfully low prices so long as you’re willing to poke around to see who wants your business the most.
Know that just because an insurance provider is offering a good rate doesn’t mean they’re offering a good deal. Plenty of insurers offer cut-rate policies at low prices that won’t provide the coverage you need in the event of an accident.
Always look closely at the amount of coverage you’re getting for the price you’re paying. Key coverage areas that you’ll want to pay attention to include “injuries per person”, “injuries per accident” and “property damage per accident”.
Buy a Cheaper Car
If you need car insurance for a brand-new Porsche, you can expect to pay a lot more than if you need car insurance for a 2015 Kia Soul.
That is a truth many people get caught off guard by when they splurge on a car they can barely afford and then find out that with insurance, they can’t meet their payment obligations.
Drive modest vehicles and you can expect to enjoy modest insurance rates.
Move to a Less Crowded City
The more likely you are to get into a car accident, the more money that insurance providers will ask you for. A factor that significantly raises the odds of your being in an accident is driving in a crowded city that features busy roads and tons of cars.
While most people wouldn’t move out of a busy town like Los Angeles just to save money on car insurance, insurance savings is a moving perk that might inspire you. Check with your insurance provider to make sure your new neighborhood will save you money before packing your bags.
Raise Your Deductible
Your insurance deductible is how much money you’ll have to pay out of pocket before your insurance kicks in.
When you opt in to an insurance plan, you’ll be asked how high you’d like your deducible to be.
The higher the deductible is that you choose, the lower your monthly insurance premium will be.
Opt-Out of Unnecessary Coverage
Insurance coverage is made up of two primary parts: Liability and Comprehensive and Collision.
Liability coverage is what’s legally required. It’s what compensates victims of accidents that you cause.
Comprehensive and collision coverage, on the other hand, is not a legal requirement. That’s the insurance that pays for body damage to your car and other personal damages.
If you’re financing your car through a bank, you’re probably required as part of your financing agreement to carry comprehensive and collision coverage. If you’re not bound by that requirement, though, you can save a tremendous amount of money each month by just paying for a basic liability policy.
You can find out more about what bare-bones insurance coverage will protect you against online.
Bundle Your Policy
Bundling your auto insurance policy with other policies you have can bring down the total cost of your combined expenses.
For example, if you insure your rental property through Geico and your car through Progressive for a combined total of $150 per month, by moving your rental policy to Progressive, you might pay a combined total of $120.00 as a reward for consolidating your business under a single insurer.
Maintain Great Credit
How well you’ve been able to maintain your credit is being used increasingly by insurers to make judgments on how safe you’ll be behind the wheel. You can keep your credit in good shape by making payments you owe on time and checking your credit report regularly to manage inaccuracies.
You can request your credit report for free by following this information laid out by the FTC.
Keep Your Car Mileage Low
If you’re not planning on driving your vehicle very much, let your insurance company know. The fewer miles you anticipate driving, the better monthly cost your insurer will be willing to offer you.
Be honest when it comes to how many miles you plan on driving in a year. If you lie and your insurer finds out, it may give them the means they need to deny your claim.
Watch Out for Niche Discounts
Insurance companies offer discounts to police officers, teachers, fraternity pledges, and others.
Talk to your salesperson to see what sort of niche discounts you may qualify for so you don’t accidentally leave savings on the table!
Now That You Know How to Insure a Car at the Best Price, Do It!
Knowing how to insure a car is one thing. Knowing how to insure a car at an outstanding price is another.
We hope you feel confident in your ability to find the absolute best price on quality car insurance coverage.
If you do, start shopping! If you don’t, read more of the informative content on our blog which may help you to answer some of your outstanding questions.
