Compare Prices
In the insurance industry, prices vary widely from company to company. It is recommended that you shop around and compare quotes to get the best rates. You can get car online insurance quotes from many different places online. Your state department of insurance website may also be a good source of information.
Check the Financial Stability of the Insurer
Before choosing a car online insurance company, you want to make sure they are financially stable. An insurance company should have the financial stability to be able to pay out a claim if you get into an accident. ambest.com and standardandpoors.com are 2 places online where you can find financial ratings of insurers.
Compare Insurance Costs of Different Makes and Models
Some cars cost more to insure than others. Cars that cost more to repair have higher insurance costs. A vehicles safety rating is also a factor in its insurance cost. Cars that get stolen more often hcarry higher insurance premiums as well. The Insurance Institute for Highway Safety at www.iihs.org has more information.
Get Higher Deductibles
A deductible is the amount of money you agree to pay per accident before the insurance coverage kicks in. Raising your deductibles dramatically decreases your insurance premiums. Raising your deductible from $100 to $500 can lower your collision and comprehensive premium by up to 30%. You may want to consider putting that cost savings into a savings account in case you need it to cover the cost of repairs in case of an accident.
Consider Dropping Comprehensive and Collision Insurance on Older Cars
If your car gets totaled ina an accident, your insurer will not cover more than your car is worth for collision or comprehensive. If your car value does not exceed 1 years worth of collision and comprehensive premiums, it may not be cost effective to carry the insurance. You can find out the value of your car at edmunds.com, kbb.com, or nadaguides.com
Car Online Insurance Discounts
When you are shopping for car online insurance, inquire about discounts for the following list of items. Not all insurance companies offer these discounts. These discounts should be factored into your car online insurance quote.
Multiple Policy Discounts
Many insurance companies will give you a discount if you have more than one insurance policy with them. If you own a home or another vehicle, see how much of a discount you can get by insuring your home and your vehicles with the same company.
Safe Driver Discounts
If you are a safe driver and you have not been in an accident or had a moving violation within the last 3 years, many insurers will discount your premium.
Good Credit Discount
More and more insurers are using credit reports as a way of determining insurance pricing. There is no definite explanation as to why this is so. Good credit means better insurance rates. Check your credit report and make sure there are no errors or inaccuracies that may lower your credit score.
Low Mileage Discounts
If you have a short commute to work or if you telecommute, you may be eligible for a low mileage discount on your car insurance.
Group Discounts
Some employers and labor unions are able to get group discounts on car insurance and other types of insurance for their employees or members. AARP and AAA have discount car insurance plans for members. Check with any professional groups or organizations that you belong to see if they have group discount insurance plans for their members.
Safety Devices
Having safety devices such as anti-lock brakes, air bags, and automatic seatbelts can also lower your insurance premiums.
Anti-Theft Devices
Anti-theft devices such as alarm systems, lo-jack, and systems that disable the engine can give you some savings on your car insurance policy.
Defensive Driving Course
You can get reduced insurance rates if you or any members of your household complete a defensive driving course.
Car Online Insurance Quotes
There may be other discounts offered by your insurance company that are not listed here. Be sure to ask the insurer or insurance agent what other things that you can do that may lower your premium payments.
By: E. T. Hobbs