Car insurance can be expensive and rates vary depending on the type of vehicle and the age and driving record of the insured. For example, car insurance for a bright red two-passenger sports car is more expensive than insurance for a station wagon. Additionally, insurance rates for new drivers and those under the age of twenty-five cost more than for those who have been driving for several years. While you may have been happy with your coverage in the past, here are some tips on how to get cheaper car insurance.
Shop Around and Compare
As with looking for any type of insurance, shopping around is the best way to find cheaper car insurance. There are many insurance companies out there and they are all competing with one another to get your business. Take advantage of this competition by shopping around. Search the internet and make notes on different policies and prices offered. Compare prices between signing up online and more traditional ways of purchasing insurance. Use the internet as a tool, it is convenient and makes shopping for cheap car insurance easier than it has ever been before.
Increase the Deductible
A deductible is simply how much money you will pay out-of-pocket should you have an accident. A higher deductible generally means lower monthly insurance rates. This is an especially effective money saving strategy if you are a driver with a history of good driving practices. Increasing the deductible can get you cheaper car insurance and save you a ton of money. Just remember, by increasing your deductible you are assuming more of the financial responsibility in the event there is an accident.
Buy Only Liability Insurance
If you own an older car that is used mostly for traveling to and from work only, consider buying liability insurance only. This is the minimum type of insurance allowed by state law. It protects you from a lawsuit should you be at fault in an accident. However, liability insurance does not cover damage done to your car. Additionally, it does not cover anyone in your car that might get hurt because of an accident. However, in some situations, choosing liability insurance only may be a good way to get cheaper car insurance.
Multiple Vehicles One Policy
Many insurance companies offer substantial discounts for policies that insure multiple cars. This is an effective way to save money if you have several vehicles. In addition, if you have drivers in your home who are under the age of twenty-five, consider placing them on your policy to save money.
There are several ways to get cheaper car insurance. Shop around and compare rates, increase the deductible or buy only liability insurance. Make it habit to insure multiple vehicles on one plan. Have an idea of what type of coverage you are looking for before you purchase, research your options and make an informed decision. These tips will help get you to get the best deal you can get for your money.