Auto insurance is a common bill to most households however
the cost of car insurance premiums can vary greatly. Whether its coverage for a
teenager, a new car, a senior citizen or someone with a poor driving record auto
insurance companies offer policies at rates which may seem random at times.
Its important to know how auto insurance rates are
calculated and that there is a logical formula used to arrive at your premiums.
Auto insurance is risk based and a companies job is to evaluate how much of a
risk you are to insure. Many factors (most of which are common to all car
insurance companies) go into the calculation including your driving record,
credit history, make and model of the car, how the vehicle will be used, how far
the vehicle will be driven, your location of residence, your experience as a
driver and much more.
The search for
affordable car insurance does not have to be difficult. There are many
things any driver can do to help find the best premiums around.
Verify Your Information
First, you need to get a copy of your driving record and
make sure its accurate. This will be same for your credit report. Although
credit reports have far more errors than driving records its still important to
see the same information the insurance company will view and make sure its
accurate before submitting an application.
Understand Auto Insurance Coverage
Car insurance is less complicated than most consumers think
but you have to take the time to understand such terms as bodily injury
liability, personal injury protection, replacement coverage and more.
Ask about Discounts
Are you student? Do you take the subway to work and only
use your car sporadically? Do you have a drivers education course completed?
Does your car have anti-theft or other safety devices? There are many
discounts available but you have
to ask around to understand what each company classifies as a potential element
for discounting your policy.
Higher Deductibles
Do you really need a $200 deductible? Maybe you can afford
$500 since accidents usually rarely often and it may be worth considering
choosing a high deductible option in order to lower your monthly premiums.
Always discuss the deductible options since they play a big part in calculating
your final auto insurance premiums.
Ask for Referrals
The purchase of auto insurance should never be decided
based purely on the premium cost but also the reliability and reputation of the
company. It's very hard to look at a caveman, talking duck or shiny new
umbrellas and really determine how reliable each company is. The ultimate test
will be the personal referrals you receive about the customer service friend or
associates have experienced with the company. Research every company as much as
you can.
Get Quotes
Many consumers fail at the final step but its critical to
request auto insurance quotes
from multiple companies to insure the most affordable coverage possible. Doing
your research and understanding car insurance is critical however requesting
quotes is the final and most important step to saving you money.
Take charge of your finances and educate yourself about car
insurance. This knowledge will last a lifetime and certainly make you a much
wiser consumer.
H. Moody is a writer for
AutoInsuranceNow.com who focuses solely on consumer education of the auto
insurance industry to help drivers save time and money on policy premiums.
