It is hard to find drivers who are satisfied with the car insurance rates as there is a general feeling that they are paying too much. Yet, they keep continuing with the policies without looking for alternative options. Car insurance companies are aware of the trend and keep increasing the premium at the time of renewal of policy after 6 or 12 months, depending on the policy type. Whether you are a first-time buyer of car insurance or your auto insurance renewal is approaching fast, get an auto insurance quote today and collect quotes from others, too, as part of the shopping experience to get the best offer.
Here is the way to go about when shopping for the best car insurance.
Know the Requirements for Minimum Coverage
Every state has some minimum coverage requirements ranging from bodily injury liability to property damage to personal injury protection and protection of uninsured or underinsured motorists. Some states require only coverage for bodily injury and property damage, but it can change according to the value of the car and the age of the driver. Check your state’s minimum requirement by inquiring with motor vehicle administration and consider your requirements to strike the right balance of price and coverage.
- Compare Three Different Offers
Comparing three different offers from insurance companies should help to understand the extent of coverage and the accompanying rates, which helps to arrive at a rational decision. You can approach reputed car insurance companies and obtain quotes for your specific situation, and after getting the quotes, compare it line by line to ensure that your points are all covered. Besides the price that you pay to ensure that it matches your budget, consider the deductibles, which is the payment you must make in the event of a claim. Lower premium entails higher deductibles and vice versa. Being truthful and paying slightly high is always a better option to avoid subsequent financial losses.
- Be Honest
Remember that insurance is a matter of mutual trust, and even if you feel like suppressing facts to lower premium and make short term gains refrain from it because it will cause more harm than good. In case of a claim, it could be staring at the possibility of bearing the entire cost of damages if your policy could be rendered inapplicable because the price you paid for the policy was not true to the situation which the insurance company would investigate and find out.
- Seek Discounts
Car insurance companies offer many types of discounts and stay prepared to ask for discounts upfront. Discounts are available for combining your auto insurance policy with other policies like homeowners or renter’s insurance, multi-car discount, discount for a single payment of premium, good driving discounts, and even incentives are offered for going paperless.
Obtain quotes from national insurance companies as well as local companies because you never know which company could give a surprisingly good rate. Shopping around for car insurance can help you save as high as 47%, which translates into almost $850 a year.