How to Get Really Cheap Car Insurance Today
Everything You Need To Know To Find Cheap Car Insurance
Car insurance, if everyone is honest with themselves, is one of the necessary costs in life which not many people enjoy paying. Yet, it is essential for any car owner to hold some kind of insurance policy for their vehicle. In the current economic climate though, with more and more people searching for ways to decrease their monthly outgoings, now is the perfect time to review existing policies and look for cheap car insurance.
Car Insurance: What is it?
Before a person can begin to search for cheap auto insurance, it is important that a few things about how car insurance actually works.
Basically, car owners must be able to show that they can cover any costs for any damage they may cause to their own or other people’s vehicles as well as any medical bills which may be incurred by either party. The policy holder will pay the insurance company a fee each month or annually to cover these costs.
The fee is determined by the amount of risk presented by the car owner and the type of cover they wish to receive. Risk assessment depends on such factors such as:
- What the vehicle is used for
- The amount of mileage the vehicle will use over a year (lower mileage normally brings lower fees)
- Ability and sensibility of the driver. New and/or young drivers tend to incur higher fees due to lack of experience on the road
- Age of the vehicle
- Engine size. Faster cars are considered more likely to be involved in collisions due to the top speeds. In addition to this, high speed collisions inevitably cause more damage to other vehicles and people.
- The area in which the car owner lives. This can affect the risk of potential theft and vandalism to the car. Insurance companies will also look at the anti-theft systems installed in the car as well as whether the car is able to be parked in a secure place overnight such as a garage.
As for the policy needed; this is largely dependent on what the holder requires. Many insurance brokers offer set policies as well as “tailor made” policies by which the vehicle owner can literally pick and choose exactly what they would and wouldn’t like to be covered for.
However, it is vital that every person seeking car insurance remembers that each state carries its own minimum requirements for insurance. This information can be found easily online by going to the official insurance department of the preferred state.
Finding Really Cheap Insurance Rate Quotes
So now everyone knows the basics of auto insurance, it is possible to start shopping around for the cheapest car insurance in town. This is done by obtaining quotes from car insurance companies.
There are a few important things to remember when looking for quotes:
- Know exactly what coverage is wanted. There is no point in paying higher prices for parts of the policy which are not actually needed.
- Compare, compare, compare. By comparing as many car insurance quotes as possible, from different companies, vehicle owners can be safe in the knowledge that they have not missed out on a great deal from another company.
- Once the type of cover is known, give the exact same information to each and every company. If different information is given to different brokers, then it is not a true comparison.
- Enter as much information as possible on the insurance forms. The risk factors listed above are literally the tip of the iceberg when it comes to the criteria used to calculate auto insurance rates. By entering all available information, such as anti-theft systems and safety features placed within the car for example, there is more chance of lowering the rates.
The importance of obtaining and comparing as many quotes as possible cannot be stressed enough when looking for cheap car insurance. In past years, this was not always possible as obtaining a quote meant making an appointment with a particular company, and sitting down with somebody face to face in an office. This was both frustrating and time consuming.
Nowadays, thankfully, there are websites where consumers can enter all the relevant details just once into an online form and the comparison site will trawl through many well-known insurance brokers and retrieve quotes from each in seconds. The information is displayed in a way that people may see all the relevant information (policy and what is included, rate etc.) at a glance.
Whilst these websites are without doubt one of the most useful tools when looking for inexpensive auto insurance, they do not show all insurance companies. It is worthwhile checking for independent companies which are not registered with such comparison sites in order to make a truly informed decision.
Don’t Just Accept the First Quote
Although looking for the cheapest quote is a good starting point, it is a good idea to select not just one insurance company to talk to, but perhaps two or three companies with the cheapest quotes. Once these companies have made the shortlist, the intended policy holder can contact the companies and begin to haggle with them.
When asking for a cheaper rate for car insurance, car owners should ask about:
- Discounts – Certain discounts can be given sometimes for low mileage, students, and a number of other factors.
- What the policy covers exactly – There may well be extras which are not needed. For example, mom who works part time and only uses the car to drive a few miles down the road and back each week may not see the point in having comprehensive breakdown cover for her little run around.
- How they can beat the next insurance company – It is always worthwhile mentioning what another insurance company is willing to offer. Insurance brokers need the business of individuals and could surprise people with how much they are prepared to compete for business by offering deals and bonuses.
Lastly, there are certain tips and tricks which may go some way to lowering insurance rates for the group which are renowned for being stung with high insurance rates; new drivers:
- Take a Driver’s Ed course. This proves that a young driver is more responsible and more knowledgeable about state law.
- Students (who may be eligible for discounts anyway) who receive good grades at school will also show a certain amount of responsibility and can often reap the benefits of lower insurance rates.
- Choose the first car sensibly – Going for the sporty number with a big engine may look impressive, but will definitely cripple the bank account when it comes to paying the insurance premiums. The heady combination of a new driver with little road experience and a fast car will have insurance companies running for the hills and the driver running for their checkbook.
All in all, inexpensive car insurance can be found with a little perseverance, know how and 100% dedication to getting the best price.