Posted on: 17 August 2016
Every motorist is on the lookout for cheap car insurance, but some people aren't just satisfied with the "low" rates they are currently paying. Suppose you wanted to insure your car for the cheapest rates possible, how would you go about it? Here are some of the tricks that will help:
Choose Minimum Coverage and Maximum Deductible
Each state has a minimum coverage that each motorist must have, and it follows that this minimum will attract the lowest rate possible. In some places, minimum liability coverage can be as low as $30,000 for each accident you are deemed liable for. Pair that up with the highest deductible possible for your coverage. The deductible is the amount you must pay towards a settlement before the insurance company pays out its share.
Research All the Discounts and Request for Them
There are dozens of car insurance discounts, some of them you may not even have heard of. For example, have you heard about the early switch discount, which some insurers award if you switch to their service early enough before your current coverage lapses? Don't assume that your insurer will tell you about all these discounts; they rarely volunteer the information if you don't request for it. An independent insurance agent can also is well placed to furnish you with all the information. You can also do your own research and come up with a list of all the possible discounts. After that, approach your insurer or agent and ask about all of the discounts.
Forgo Comprehensive Insurance
Comprehensive insurance covers all damages to your car other than those caused by other people or during a collision. However, it's not a legal requirement since it doesn't affect anybody but you. You can save a lot of money by not buying comprehensive insurance.
Improve Your Credit Score
There are many ways of improving your credit score, but they all boil down to one thing: being careful with your money. For example, you are careful when you pay your debts in time since you don't want to incur late-payment penalties. Insurance companies know this too, which is why they assume a person with a good credit score is also a careful driver since they don't want to increase their insurance rates or incur car repair costs unnecessarily.
These tips will lower your car insurance rates considerably, but some of them have cons you should be aware of. For example, if you forgo comprehensive insurance, you should have some money in your bank account you can use to repair or replace your car in case it gets damaged or repaired.Share