7 Tips to Help You Get Cheap Auto Insurance

Reader’s Question:

Like everyone else, I want to get cheap auto insurance rates. Just how do I do this without having to hire any brokers or spend too much time? Am I asking for too much here?

Zeus

Biloxi, MS

These days, who has the luxury of spending hours with agents or brokers to find auto insurance coverage? Still it is worth it to make sure you find the policy and provider that suits you best. Here are some useful tips to help you:

1. Start Online – Use auto insurance comparison websites (like this one). You get access to free instant auto insurance quote checks and are able to compare many different insurers simultaneously. This saves you a lot of time and effort in finding the best-priced deals out there.

2. Read the Policy Carefully – Know exactly what you’ll be paying for. Sometimes you end up with coverage items that are completely useless to you. Take off redundant coverage. If you have an old, cheap vehicle consider lowering (or dropping) comprehensive coverage.

3. Get Discounts - You can get discounts for bundling multiple policies with one company, for taking defensive driving courses, or for lowering your total annual mileage. Discounts are a great way to lower expensive coverage. Make sure to always ask for what you’re eligible for.

4. Go with a Competitive Company – Find out which insurers have the best service, rates, claims handing process, etc. by visiting the websites of Independent rating agencies like A.M. Best and J.D. Power. You can get valuable insights that will help you determine the companies you should do business with.

5. Choose a Bigger Deductible - Higher deductible, lower premiums. Just don’t make it too high though.

6. Setup an Annual Payment Plan – Most insurers today offer reduced rates or discounts for customers who pay a year upfront. If you can afford to, take advantage of this to save more in the long run.

7. Be a Good Driver – Nothing beats a good driving history when it comes to keeping affordable coverage for years to come.

Will Driving a Small Car Increase My Auto Insurance Rates

Reader’s Question:

Is it true that I will pay more on my auto insurance if I drive a smaller vehicle? What other things should I know about that could cause me to pay higher rates?

Lillian

Ann Arbor, MI

Excellent question! First of all, yes it is quite possible for you to get charged higher auto insurance on a smaller vehicle. Everyday physics would tell you that in a collision between a smaller vehicle and a bigger one, the latter will always win. Passengers on a smaller car would have a higher risk of death or injuries in this case, even with a ton of safety features in place. This higher risk is what causes people to get more expensive auto insurance quotes from insurers.

Other things that can cause you to pay more on auto insurance:

1. Poor Credit Rating - Those with poor credit tend to file more claims and get into more accidents (statistically speaking). This increases the risk and therefore the rates.

2. Unsatisfactory Driving History – Getting into more accidents or collecting traffic tickets is probably the quickest way to skyrocket your rates.

3. Annual Mileage – The more you are on the road, the higher the risk of getting into a car accident.

4. Too Much Claims – Claims indicates how frequently you get into car accidents. The more you file the more you’re telling your insurer that you are a riskier driver.

I highly recommend you do as much auto insurance quote checks as you can. Use online auto insurance comparison websites to do this easily and quickly so you can get the best offers.