Shop Around to Get the Best Auto Insurance Policy
Studies have shown that while consumers will spend hours comparison shopping for big ticket items like a big screen television, they spend relatively little time shopping for the best auto insurance rate. Insurance costs for your vehicle can add up to hundreds of dollars a year, so shouldn’t you spend at least as much time shopping for your insurance as you do for your TV?
Shopping around for inexpensive auto insurance has never been easier, but there are a few helpful tips that can make the process faster and smoother. Before you begin, take a few moments to review your personal financial situation. Is your credit score up to snuff? If not, you could be looking at higher rates, since many carriers use this as an indication of your risk level.
Also look at your financial assets. If you own a home you will want to have high enough liability coverage to protect your valuable assets in the event of an accident. Low liability limits can be quickly exceeded in the event of a serious crash that injures people, putting you at financial risk. Conversely, if you don’t have many assets you may be able to lower your liability coverage and save money.
Once you have done a personal inventory, the next step is to look at your existing coverage. If you currently have a homeowner’s or renter’s insurance policy, your first call should be to your current carrier to see if they will insure your vehicle. Many insurers will provide significant discounts if you keep all your policies with one company.
If you are thinking about buy a car, it’s wise to check on what your insurance rates will likely be before purchasing it. Similar models can have very different rates, based on the vehicle’s past theft loss history. It may well turn out that if you opt for a four door model rather than a two door model you could save on your insurance costs.
Lastly, be sure to use one of the many resources available online to check rates from multiple insurance companies. Each carrier views your situation differently, so just because you may have received a high quote from one doesn’t mean your next quote won’t be significantly lower. Spending just a few minutes comparing rates can save you hundreds of dollars a year – not a bad payoff for the time invested.