So, you’re searching for the best car insurance policy for the least amount of money. While it is true that you get what you pay for, there are still some secrets that are closely held by the auto insurance industry that can help you keep premiums low. We’re here to unlock the secrets!
Insurers check your credit. Why? The industry has conducted the research. Studies show that people with a low credit score are cheaper to insure and are a better risk. They actually have a term for it: Insurance Risk Score. So, keeping your credit in check can help you score better with your car insurance premiums.
Insurers care what you drive. We all know that driving the hottest sports car costs more to insure, but we’d never guess that an entry level sedan might be even more expensive. Why? If your car is one of the most frequently stolen, it’ll cost you with your premiums. If you are deciding between a few different models, it’s a good idea to call your insurance company ahead of time and find out how the insurance premium will change based on the different vehicles.
Insurers give a discount if you pay in full. Those that can afford to pay their entire year of insurance premiums all at once will get a discount. If you have to pay quarterly or with an installment plan, you will end up paying slightly more per year for the same insurance.
Insurers don’t cover stolen or damaged personal property. Are you in love with your cd collection, iPad, or expensive handbag? Then it’s probably best not to leave them in your car. If your personal property is stolen or damaged during a theft, it will not be reimbursed as part of your claim.
Insurers won’t use the Kelly Blue Book to value your car if it’s “totaled.” They’ll come up with their own number and you’ll have to negotiate with them regarding the value of your car. A good idea is to keep all your service records so you can present them to your insurance company. They will demonstrate the value of the car by showing what great condition you kept it in. Also, make sure they are giving you credit for any special options you had on the car, especially if you were paying higher premiums to insure those options.
Keep these simple things in mind the next time you are searching for a new auto policy – they just might make a big difference in your premiums.
Tags: cheap car insurance