Checklist to Get Cheap Car Insurance
When looking for car insurance, rates can vary widely depending on a myriad of factors. Some of the factors are under the consumers control while others are harder for the consumer to control. Anyone looking to pay less for car insurance needs to understand how car insurance companies calculate rates, and what they can do to get lower rates. Here, is a checklist to get cheap car insurance.
The driver’s record is crucial when determining insurance rates. A record with tickets and accidents will lead to higher premiums. In some states, drivers who have received tickets, can take classes in order to avoid paying higher premiums. When taking a drivers training class, the ticket is essentially nullified. By taking a class, an insured driver can save hundreds of dollars a year, with the cost of the class usually being less than $100, it is almost always worth it.
The amount of coverage desired also factors heavily into insurance rates. The more coverage a driver requests, the higher their premiums will be. For a leased car or a car owned by the finance company, insurance coverage needs to be high. For older, paid for cars, the driver can have the state minimum. Sometimes the premium difference is negligible, other times it can be hundreds of dollars a year. Make sure to have adequate insurance in case of an accident, but carrying high amounts for an old car may be a waste of money.
Car drivers who drive infrequently can receive a pretty substantial discount. The difference in premiums of someone who drives 20,000 miles a year is much higher than someone who drives 4,000 miles a year. To lower rates, consider driving less and combining trips. Remember, do not lie when informing the insurance company of miles driven per year, it could result in stiff penalties.
There are less significant factors in determining insurance rates that drivers should keep in mind. A garaged car will get lower rates, as well as a car with an anti theft device. The difference may only be a couple dollars a month, but over time it will add up.
Anyone looking to lower their insurance rates needs to understand how auto insurance companies determine premiums. With proper research, a driver can save hundreds of dollars a year while still enjoying more than adequate insurance protection. It is crucial to be adequately insured the worst case scenario.