7 Smart Tips How To Find Your Best Auto Insurance Policy
Automobile insurance (car insurance, truck insurance, etc.) is a requirement in just about every state. Many times, we don’t actively use our insurance, but we still have to maintain an insurance policy. So, here’s a top 7 list of things you can do to help get the best auto policy at the lowest price.
Look over these tips so you can find the best auto insurance for your situation. There’s a “bonus tip” at the bottom, so keep reading!
1. Shop around.
Prices do vary between all the available carriers. Save yourself some time and contact your local independent insurance agent for auto insurance quotes. They can do the shopping for you, so you don’t have to. (If you’re in Texas, your best bet is to contact Hettler Insurance Agency in Lubbock, Texas.) They work for You, not the insurance carrier.
* Insurance is all about managing risk, and not all carrier companies use the same risk factor formula. So, you could save quite a bit by getting quotes from several companies. Your independent agent can get you several quotes quicker than you could find one for yourself. And, the agent has inside knowledge of the insurance industry. They know which carriers are best to work with according to your needs.
2. Is your coverage amount appropriate for you?
You might not be aware that you may have more coverage than you need. Or, you may have too little coverage. Discuss this with your insurance agent to make sure that you have exactly the amounts of coverage that you need.
* Do you have an old clunker? It probably doesn’t need the amount of coverage it did when it was new. Is that old vehicle really worth the extra monthly expense? It doesn’t need to type of coverage that a new car would need.
* Also consider, does the vehicle really need $500,000 in liability coverage if the net worth is only $15,000? Consider these things so that you aren’t paying for more than you need.
3. Determine the best deductible.
Does a higher deductible make sense for you? Consider the cost savings so you’ll know which deductible is best for you. For example, let’s say that you rarely claim anything on your insurance. If you have some “rainy day” money in the bank, then choosing a higher deductible can save you money in the long run.
* Consider this: a $500 deductible could save you up to 30% (on your monthly payment) over a $250 deductible.
4. Maintain a healthy credit score.
Insurance carriers often consider your credit score when they determine the price of your policy. If you have a low score, then you could be penalized.
* It’s true that paying bills on time and avoiding loans you don’t need will raise your credit score. Like it or not, that pesky credit score affects most areas of our lives nowadays.
5. Bundle up.
Do you have your home and auto insurance with the same company? Most insurance carrier companies will give you discounts if you have more than one policy with them. Simply ask, “Can I get a discount for multiple policies?”
* Do you own boats, RVs, snowmobiles, or any other vehicles? You could save a bundle when you bundle.
* Don’t own a home? Ask if you can get a bundle by including renter’s insurance.
6. Do you consider the insurance cost when you buy a new car?
Some cars cost far more to insure than others. Before you drive home in that new sports car or luxury car, get some insurance quotes first. It all makes sense when you consider that some vehicles are much more likely to be stolen. Remember, insurance is all about managing risk. Other vehicles can be much more costly to repair, so the insurance will be more expensive.
7. Ask for a mileage discount.
How many miles do you drive during the year? Insurance is all about risk. The less your car is on the road, the less likely it is to be in an accident. So, the less likely that the insurance carrier will have to pay to fix it. When the insurance company pays less, you should pay less. Drivers that drive fewer miles can qualify for significant discounts.
How much can a speeding ticket impact your insurance premium? A good rule of thumb is to expect a 15-40 percent jump for the vehicle/driver that had the ticket. Lubbock County, Texas, residents face some of the largest insurance increases in the entire state of Texas. After a speeding ticket, the average Lubbock, Texas, driver’s yearly costs will increase from $1,069.56 to $1,218.00, a total of $445.32 over three years, not including the ticket.
The tips above can help you get the auto policy that suits your needs. Not every policy is created equal. Your neighbor’s policy may not fit your needs. Shop around and educate yourself about what you really need. Peace of mind plus savings will probably help you sleep better at night.