In most states, getting car insurance is mandatory. And even if it wasn’t, do you really want to leave it to faith? If you already had the bad luck of getting into an accident, you don’t have to go bankrupt because of it, do you? So when you are buying a new car, keep in mind that you have to find good car insurance as well.
Car insurance is not cheap and, according to the Department of Labor, it keeps going up. Their research has shown that the average annual cost of car insurance increased by 5.3% nationwide from July 2009 to July 2010. But there are always some tips & tricks on how to find great insurance that is not that expensive.
1. Choose your car carefully.
Think well about your car choice. Depending on the model, your insurance rate will change, so talk to an insurance agent before making this purchase. For example, a sports car will definitely increase your insurance rate, while a minivan probably won’t have much impact on it.
2. More coverage – less expenses when accidents occur.
Next, there is the question of how much coverage you need. Liability coverage is mandatory in 49 states and the District of Columbia, but how much coverage you take is entirely up to you. Tim Dodge, director of research and external communications at the Independent Insurance Agents & Brokers of New York recommends buying as much coverage as possible. Since this covers whether or not you are legally responsible for someone else’s injuries or damages, and even small accidents may result in bad injuries, it is only logical to buy a lot of liability insurance.
3. Look for discounts.
When looking for good car insurance companies, it is not enough to just check two. Thanks to internet nowadays, you can check as many as you want and find the one that suits you best. Don’t be lazy about this, because depending on a company, you may pay different prices for the same things. Also, be sure to check if there are currently ongoing discounts or sales at any of the car insurance companies you are considering. There are often some discounts for paying your premium at once or for having your payment drafted from your bank account. See what exactly you need from your insurance and find the company that offers that at the best price. Check out the sites www.InsureMe.com and www.NetQuote.com.
4. Arrange a meeting with a car insurance agent in person.
Still, when you find the insurance company you like, try to organize a meeting with an agent in person rather than doing the purchase over the internet. Most companies will be able to connect you to someone close to your neighborhood, a person that will be able to answer all your questions now and later on, if you have any.
5. Raise (yes, raise) your
This may seem like a wrong advice, but read carefully: raise your deductible. Even though most drivers buy the lowest deductible possible, choosing one that is, for example, $500 or $1000 higher will result in lower monthly premiums. This way you will save more money over time. Just be sure that you can actually afford the deductible. Here’s a tip: put the money meant for that in a separate saving account and don’t touch it, and raise your deductible when you are sure you have enough.
6. You don’t have to stick to one car insurance company forever.
In the end, just because you chose one company when you were buying the car, doesn’t mean you have to stick with it forever. Stay well informed and review other companies at least every 12 months. Ask around, talk to family and friends and see who is pleased with their car insurance. Check out websites of various car insurance companies and see the reviews costumers made. Just be sure not to go for a cheap one just because it is cheap and ending up with bad service – that will backfire when you need it the most.