We all hate it, but we all have to do it at some point: shopping for car insurance quotes!
Since you can't avoid it, you might as well find out how to save money while doing it. Here are the best tips you can use to make sure you never pay too much for your car insurance...
- Think like an insurance agent. The main thing that insurance companies use to set their rates is risk. The higher the premium, the more risky you seem, and vice versa.
- If you have an older car, you might want to think about "liability only" insurance. When making a decision like this, you need to think about how much your car is worth compared to how much your premium is. If the wholesale value of your car is, say, $1,000, why pay almost that much per year (give or take) if that is all your insurance company will pay you if you total your car?
- Take a defensive driving course - A simple 6 hour defensive driving course can save you up to 10 percent on your insurance premium. You can get information about this course from your local department of motor vehicles. Often, you can also take this course by mail, video, or even online!
- If you have more than one car in your household, insure them all with the same company. Most insurance companies will give you a big discount if you have more than one policy with them.
- If you also need insurance for your life, home, fire, boat, or anything else, use the same agency. Just like with multiple auto policies, most agencies will cut a big chunk off your premium if you have more than one policy with them.
- Look for quotes often. Many people pay the same premium for years because they haven't shopped around. As your car gets older, its value goes down. Think about it: You shouldn't pay the same premium for an older car as you would for a newer one. In general, it's a good idea to look for quotes once a year, but the more often you do it, the more likely you are to get lower rates.
- Raise your deductible. The higher your deductible, the lower your premium will be, so set it as high as you can. Just make sure that if you ever needed the insurance, you could pay this deductible.
- Keep your credit in good shape. Just like any other business, insurance companies like to be paid on time. If you have good credit, your premium will be less.
When you talk to an agent, tell them why you are less of a risk. For example, you have a safe car, a good driving record, don't use your car for work, don't travel much, your car has anti-theft devices, you park in a garage, etc. Before you talk to an agent, it would be smart to write down the reasons why you're less of a risk. Try new things!
