If you own a car, you need car insurance. In most places across the globe, it is required by law. If you own a car and you do not have insurance, the consequences could end up costing you a huge amount in fines. Many people avoid purchasing car insurance because they can’t afford it.
In doing so, they put themselves at great risk for penalties, loss of their license and even jail time. While car insurance is a necessary expense, it doesn’t come free. However, this guide will teach you how to get the cheapest car insurance rate.
Drive Safe
The best way to get cheap car insurance rates is to be a safe driver. The main rule for insurers is simple – the better your driving record, the cheaper your insurance. Safe drivers and drivers with little to no accidents or tickets on their record get the cheapest car insurance, This is because they pose very little risk to the insurer. Insurers are less likely to have to pay out on policies of safe drivers. Look into insurers who offer accident forgiveness programs. If you have an accident or ticket on record, your rates could be reduced for every year you do not have an accident so be sure to review your policy annually.
Compare Quotes
Rates vary greatly between insurance companies and just because one company says it is the cheapest, doesn’t mean that it is true. What is cheaper for one person might be the most expensive for another. If you want the best deal then you need to shop around and regularly compare car insurance rates. Look online for quoting websites or go directly to a company’s website for more information (and sometimes cheaper quotes). Make sure that anyone you talk to and all websites you visit are safe and trustworthy before giving your personal information.
Improve Credit Score
Credit scores have a huge impact on car insurance rates unless you live in one of the few places where insurers are not allowed to use credit scores to dictate rates. When compared to someone with a perfect credit score, someone with poor credit could see a 130 percent increase for the same coverage. If you have poor credit, star focusing on fixing it. Make sure that you are working towards paying off any outstanding debts and keeping up with your bills to eliminate credit score related increases.
Bundle Insurance Policies
If you have policies insured through different companies, consider bundling them through one company for a reduced cost. Multi policy discounts are a great way to save on insurance related costs. Request quotes for bundled policies when you are comparing auto insurance quotes from companies. You can bundle multiple cars, homes, RVs, motorcycles, boats and more for a huge discount that will maximize your savings.
Regularly Review Your Coverage
It is not uncommon for insurers to raise rates every year. This can happen even if you have a policy that you haven’t changed. To avoid this you should be check your quotes every time the policy is up for renewal. If is also a good idea to review your policy and rates in the event that you have had any changes in your address, credit score or driving record. Depending on the change it could either see an increase or decrease in your rates.
