Car insurance is a legal requirement in most states and provides financial protection against damage to another person’s vehicle, loss of property, and injury to people in an accident. In exchange for a premium, an insurer agrees to pay damages and expenses as specified in the policy. The policy term usually lasts six months or 12 months and is renewable.
Getting the Right Policy
There are many types of car insurance, and prices vary widely. Some basic coverages include liability and comprehensive, while other types, such as collision and personal injury protection, are optional and increase the cost of a policy.
Discounts for Safe Drivers
Low-risk drivers, such as older or married people, can receive lower quotes than others. Also, taking a defensive driving course or buying safety equipment may reduce your rates.
Bundling your home and auto policies is another option that can save you money. You may be eligible for a multi-policy discount of up to 20%, which is often worth the extra effort.
Compare Your Rates Every 6 Months
It’s a good idea to shop around for car insurance at least once every six months, and you should do so even if you’re satisfied with your current policy. It’s not uncommon for your rates to rise after a few years of being with the same insurer, particularly if you have a history of making claims.
Get a Quote Today
Getting free car insurance quotes online is a great way to find out which companies offer the best rates in your area. To start the process, you’ll need to enter your ZIP code and some basic information about yourself and your vehicle. The site will then match you with available discounts and provide estimates for a variety of different driver profiles.
Your credit score and past driving record can affect how much you pay for car insurance. If you have bad credit or a DUI, you’ll likely pay more than you should, but working on your score can improve it.
Other factors can impact your rates, including your vehicle’s make and model. For example, a high-end sports car will likely be more expensive to insure than a family-oriented SUV.
You can get a better deal by choosing a higher deductible than your current insurer recommends. A higher deductible means you’ll have to pay more out of pocket before your insurance company starts paying out, but it can help reduce your monthly premium.
Insurers use different algorithms to determine whether loyal customers will shop around, so it’s important to ask questions and get a sense of how they think you’ll behave.
Keep in Mind That All Coverage Is Not Created Equal
When comparing quotes, you should look at each policy’s coverage limits and deductibles to ensure that they are equivalent. This will give you a true one-to-one comparison and allow you to find a more affordable policy that’s also worth the price.
There are many ways to save on car insurance, but it all comes down to knowing what you need and what you can afford. Some tips include getting a safe driving discount, taking an approved traffic school course and choosing a vehicle that’s less likely to be stolen.