The quest for cheap car insurance has gone on for as long as car insurance has existed. "Cheap," however, doesn't have to mean inadequate protection. Here are four things you can do to control your car insurance costs and get the greatest possible value from the insurance you select.
1. Look for the Lowest Rates Again
All kinds of insurance policyholders can benefit by regularly re-shopping for coverage. A car insurance provider's premium rates can creep up from one year to the next, leaving you with a less satisfactory deal than you originally obtained. Even if your rates have stayed the same, your financial situation may have taken on some new wrinkles that require you to pay less for your car insurance. Sometimes switching to a different plan or provider can give you the same (or even better) coverage at a more affordable rate. For instance, if a teen in your family has taken up driving since you last picked your insurance plan, you may want to look at providers that offers specific packages for families with teen drivers.
2. Get Control Over Your Credit Score
Did you know that your credit score can have an impact on what kind of car insurance rates you can expect, not just from your current provider, but from just about any insurance company? In most states, it's the truth—and it's purely a matter of associated risk. Studies have indicated that car insurance applicants with lower credit scores are more likely to file claims. That's why it makes good sense to build your credit score by paying bills on time, paying down your credit card balances, and allowing credit accounts to age instead of closing them. Focus on your Experian and FICO credit scores, since the car insurance companies use these figures in their own scoring calculations.
3. Choose Your Car Wisely
It's no secret that it costs more to insure a $100,000 sports car than a modest subcompact economy car or family minivan. Some of this difference, of course, depends on the new or used value of the vehicle itself—but the type of the car also says something about the likelihood that the owner will file an expensive claim. An aggressive or high-speed driver (the type who might naturally gravitate toward the pricey sports vehicle) is more likely to get into an accident than a mom transporting her kids to school in a minivan. Less glitzy cars are also less attractive targets for thieves. It's entirely up to you to choose the vehicle that best suits your needs, tastes, and lifestyle. If, however, you can stomach the thought of buying a more practical car as opposed to a more extravagant one, you should save money on your premiums.
As you can see, cheap car insurance can mean different things in different situations. Think about your vehicle, your financial status, your lifestyle, and other factors to determine what "cheap" means for your car coverage—and then start checking the available offers against your needs and expectations! Reach out to businesses like LA Insurance to learn more.
Share18 December 2019
About a year ago, I started thinking more seriously about choosing different insurance. I was focusing on all of the different aspects of insurance, and it was really interesting to me to see how much I could save by switching services. It was a lot to process, but before I knew it, I was able to completely overhaul my insurance coverage, and it made a tremendous amount of difference for me. This blog is here to help other people to know what to look for in insurance coverage so that they can enjoy a happier tomorrow. Check out this blog for more information.