Finding better car insurance can seem difficult. Do you want cheap auto insurance? Is this your ultimate goal? Saving $10-15 per month can add up to a huge savings over the course of a year. Here are four ultimate tips for help you find a lower premium.
Know Your Current Levels
It’s very important to know what your current levels are. Were you aware each state has a minimum coverage for your automobile insurance? You could be paying way over the minimum. Many times this is actually a great thing. You don’t have to pay over the state minimum. Most insurance agents will recommend that you do.
You might only have 25/50/50 total for state limits. This means $25,000 for bodily injury(per person), $50,000 for bodily injury(total), and $50,000 for property damage.
What does this mean? Let’s say you were in an accident. You are at fault. The insurance would pay a total of $25,000 per person involved in the accident up to $50,000 total. The insurance would pay up to $50,000 total for any property damage that occurred. This is after your deductible has been met.
Would this amount cover the medical bills and property damage for everyone involved in the other vehicle(s)? It may not. Many times an auto carrier will automatically give you 100/300/100 levels. This allows for some error and also gives you more protection in the event of an accident. These limits would definitely result in a higher premium.
You have to consider everything. If your coverage isn’t sufficient, will you get sued? Do you want to make sure you are completely covered in the event of an accident? Lower levels mean lower premiums. It also means less coverage. You can absolutely select less coverage as long as it falls under the state minimum. This allows you to pay less.
Do You Need Comprehensive Coverage?
Comprehensive is definitely necessary if you don’t own your vehicle. You want to make sure this is added so your vehicle can be paid off in the event of an incident. You can elect to drop comprehensive if you do own the vehicle outright. The bad news is you won’t be able to replace your vehicle if it’s a victim of mother nature without comprehensiveness. It also means you won’t be able to replace the vehicle if you are at fault. You’ll always have to select collision. Collision coverage is the coverage needed in the event you were to hit another vehicle.
Raise Your Deductible
You can change your deductible on your collision or comprehensive. A deductible is what you pay first before insurance takes over the payment. You may have a $0 deductible on your vehicle. This means you’d pay nothing in the event of an accident. A deductible of $500 would cost less but would have you pay $500 before insurance assumes any other remaining costs after an accident. Higher deductibles equal lower premiums. The reality is you may not have $500 to pay on a deductible in the event of an accident. Is it worth saving a few bucks per month to have to pay $500 with an accident? Some people prefer to roll the dice and gamble with the everyday savings.
Shop Around For Bargains
It’s important to find the best price. It’s also very crucial to make sure you are comparing apples to apples. A different company may quote you a much lower price. They may have to adjust things above like deductibles, comprehensive, or bodily injury and property damage limits. You’ll need to make sure you have the same limits when comparing prices. You want to make sure you get documentation of your exact limits and deductibles from your current company. Your current company may also be an independent agent with an ability to shop your insurance around. It’s definitely worth asking. It’s okay to let them know you are concerned with the prices or recent increases. They’ll crunch numbers and try to save you as a customer. If they don’t, you probably should be looking elsewhere. You’ll need to remember cheap auto insurance may come with a longer term cost.