TOP 10 Tips for CHEAPER Car Insurance – How to get Lower Auto Insurance Rates (2019-2020)
Hello I’m author and publisher of the 13 car buying the mistakes to avoid common car buying the mistakes are my top 10 tips and get the best out insurance rates number one don’t assume any one company is the cheapest some companies spend a lot of money and commercials trying to convince you that they offer the lowest car insurance rates.
You’ve likely heard the mall the truth is that prices people pay for the same coverage at the same company vary widely and no single company can claim to be the low price leader the insurance company that’s cheap is for one person in one place might be the most expensive option for a different driver in another state some insurance companies also have developed complex predictive models.
That may charge you a higher rates if they show that you’re unlikely to switch providers this might sound an ethical but this practice is called price optimization and while it’s banned in 16 states that leaves 34 states who engaged in the practice this quite a bit of savings at stake a recent analysis found a difference of $859 year between the average insurance quote and the lowest available quote at any given time again.
The only way to ensure you’re getting the best deal is to shop around there are several independent sites that you can use to do comparing just make sure that you’re not using one put out by the insurance company itself because you can guess where that might lead you. Number 2 don’t ignore local and regional insurance companies just for companies control nearly half the nation’s car insurance business that Allstate Geico Progressive and State Farm.
But smaller regional insurers often have higher customer satisfaction ratings than the big names and they may have lower rates too here’s another suggestion look for the insurance agencies that represent multiple companies not only are they happy to help you shop but they aren’t spending the big bikes like the 4 I already mentioned they put a lot of emphasis on helping the little guy.
Number 3 check for the discounts insurance companies provide a variety of discounts including price breaks for customers will have the following a good driving record it’s no secret that a good driving record will help lower your rate also consider bundle insurance with other policies such as homeowners insurance bundling generally reduces rates on one or both policies consider insuring multiple cars with one policy.
You have to buy insurance for the others any house so see what they can do on the other vehicles you own. Entire annual or 6-month premium at once payments might be the only way to go for some people but you definitely save money when you pay in advance. Agree to receive documents online own a car were certain anti-theft or safety features now I’m not talking about the bogus theft edge system sold by car dealers.
I’m talking about the legitimate anti-theft system is installed by manufacturers or aftermarket installers of anti-theft equipment and the final discount you might consider is being a member of particular professional organizations or affiliate groups you’d be surprised how many organizations out there have some affiliations with the insurance companies and being a member actually save you money check it out.
Discounts can vary by company and location so check insurance company websites or consult with agents to find out which ones might apply to you. Number 4 be aware that your credit is part of your calculation your credit is a significant factor in the car insurance quotes you receive they’re only 3 states Hawaii California and Massachusetts which don’t allow insurance companies to use credit insurance company say that customers credit has been shown to correlate with the risk of filing a claim you might scoff at that 47 states allow insurance companies to use it in their calculations.
So you need to be aware of it here’s what I suggest improve your credit first make sure you pay your bills on time you don’t need your credit report filled up with frivolous negative dings and if you do have damage credit that needs some help contact a local credit union in your area and consider taking out a small personal loans even if it’s just $200 and even if you have to put the $200 on deposit in the credit union in order to get the loan.
Put the money on deposit at the credit union and then let them take the payments out of it you’ll be surprised how much a small loan like this will improve your credit in a short period of time when you’ve paid off the loan take out a little bit larger want to do it again by paying your bills on time and using the strategy that I just suggested with a local credit union your insurance premiums will go lower too don’t forget that you get one free credit reporting here so use it and track your progress.
Number 5 consider insurance costs when buying a car did you know that some makes and models are much more costly to insure than others I am personally stunned by the number of people who go car shopping for auto insurance as an afterthought yes I’ve seen situations where person went home to find out that their insurance rates are doubling or even tripling a little tough to get out of it then you should also consider that insurance premiums vary widely between given models and talk to your insurance agent.
Before you go car shopping for example a review of rates done by an organization called nerd wallet on best selling vehicles in 25 cities found at the Toyota Camry cost an average of $187 more per year to insure than the comparable Honda accord similarly a Toyota Rav 4 cost an average of $201 more a year to insure than a Honda CRV that’s the difference you need to be aware of.
Number 6 if you own a clunker car consider dropping your collision and comprehensive coverage on that vehicle here’s why collision covers the cost of repairs resulting from damage your vehicle receives involving another car or an inanimate object comprehensive pays to repair vehicle damage caused by weather animals or vandalism for reimburses you for your car if it was ever stolen but both will only pay up to the value of your car if your coworkers old with a low market value it really makes no sense to be paying for a policy that includes collision and comprehensive.
The Number 7 consider a bigger deductible you need to Kerry comprehensive in collision if your car is a later model or if your lender requires it but you can save a substantial amount of money by raising the deductible studies have shown that customers to increase their deductible from 500 to $1000 saved about $200 per year in premiums while those who increase them from 500 to 2000 save $362 a year.
Just remember that the increasing deductible also means that you’ll pay a little bit more if you have an accident but I suggest you keep that extra money in a savings account somewhere anyhow if you have an accident you have the money if you don’t you have extra savings that you started in advance and extra money you’re saving on your policy to boot.
Number 8 consider an insurance plan that is calculated on your personal usage especially if you don’t drive much if you’re an infrequent driver or safe driver who doesn’t like very many miles consider a usage-based insurance program such as all-state drive wise or progressive snapshot for state farms drive safe and say I can tell you from personal experience that they work well by signing up for these programs you allow your insurer to track your driving electronically in exchange for possible discounts based on how much you drive when you drive and how well you drive a little word to the wise don’t be driving your car hard during this time I notice on a few occasions.
When I had to brake hard that the under – device beat I did receive a discount later but I thought it was interesting that the device noticed when I had to stop rapidly for those of you who drive less than 10000 miles per year you might be able to save money with a mileage-based insurance program such as metro mile or each urine’s pay per mile metro mile is currently available in 7 states well each urine’s paper mile is only available in Oregon these last 2 points are specifically for car buyers but that’s pretty much everybody.
So number 9 if you’re buying a new or used car at a car dealer ask your insurance provider about gap insurance first there are plenty of drivers on the road who don’t need gap at all that’s the coverage that pays the difference between what you owe on the vehicle and what its actual market value KIA’s that’s where the name gap comes from however this happens to be one of the most common products sold the car buyers while they’re in the finance office and it sold anywhere from 400 to as much as $1000 for a single car meanwhile.
It’s very likely you could purchase the same policy if you even needed it at $30 a year from your own insurance provider make sure you talk to a neutral party about gap insurance before you go car shopping. In number 10 be very cautious about any other products that sound even remotely like insurance while in the finance office at the car dealer if you’re offered any insurance products like extended warranties theft protection policies window edge programs roadside hazard coverages wheel or tire coverages etcetera.
Tell the finance man you want to go home and sleep on it in the morning call your insurance provider and also go online to do a little bit of homework yourself look these products up you can always go back and Adam to your car deal in most dealers will hold on to the paperwork for as much as a week if they know that you’re serious about doing this homework and you may potentially come back take your time a lot of money is made up of people who pulled the trigger on that stuff the date of the car sales and by the way if you one of those people who bought a bunch of these extras on your cardio.
It’s never too late to get a castle you can always go back well after the fact after you’ve signed everything doesn’t matter if it’s a week it’s a month a year go back and get this stuff canceled on your car if you decided you didn’t want it after all thanks for joining me on this top 10 tips for cheaper car insurance look for the other great videos we have our own car shopping like the 13 car buying mistakes in our latest top 10 car buying tips for savvy Kerr shoppers.