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When it comes to finding the best car insurance deals, many factors come into play. Depending on which state you live in, your driving record, and even your credit standing could affect your insurance rates. So, how do you go about picking the right car insurance to fit your needs while saving money? Fret not, there are a number of ways to ensure that you do get a great deal.
Don’t go with the most popular company
I know those Geico and Progressive commercials are so funny and entertaining that they lead to a few chuckles, but just because they say they offer the cheapest rates, doesn’t mean that applies to you. For example, an insurer in New York with say Progressive insurance may have a cheaper premium versus an insurer living in Florida that also uses the same company. That’s why it’s best to shop around and see which car insurance company has the best rates for people your age in your state.
Why your credit score is important
Your credit score plays a role in your overall price. If yours is on the low end, you can pick up a decent car insurance without much concern. If your score is mid-range, then you should not have any real problem finding a reasonable deal on a personal car insurance policy. In some cases, if you have a poor credit score, you may have to find an insurance premium that has a low monthly rate but with a higher deductible. If the premium is only good for 6-months, then you can see if they can lower the rate or shop around for better rate with another company once it’s done. In the meantime, try to improve your credit by making payments on-time, making payments to loans, and paying off any debts you owe. Along with a good driving record, the insurance companies will be able to offer more suitable rates with an improved credit score.
Look for discounts
You can lower rates and get discounts by bundling car insurance with other policies, such as renters or homeowners insurance. Also, insuring multiple cars under one policy could save you money, as well as paying the entire premium at once. Owning a car with specific anti-theft or safety features can alter the rates in your favor as well. It’s best to compare the rates amongst multiple insurers to see what fit’s best for you and your budget.
Do you really need comprehensive coverage?
If your car is older and on it’s last legs, it may make sense to drop the comprehensive or collision coverage. When you’re paying full-coverage, it’ only to satisfy the terms of your auto loan. As your car decreases in value, the maximum payout under either policy is limited by the value of the car if it’s totaled or stolen. To pay extra on insurance for an older car doesn’t make sense if it ends up in a bad accident and the insurance company will just total it out anyways.