Purchasing a car is the second biggest purchase in life, second only to purchasing a house. This is why purchasing automotive insurance is important. Coverage is a must. Unfortunately, getting the right coverage can be difficult. Many people purchase coverage that they don’t really need. And as a result, they pay more than they should. If you want to avoid this, follow our tips below.
Annual Rate Check
If you have been with the same insurance company for years, this is the first thing you need to do. You need to do an annual rate check. Many people stick with their insurance for years for no apparent reason. This is a mistake. In some cases, you can save your money by switching insurers. So, be sure to compare rates from various insurers. There are many online sites that offer such comparisons.
Choose a Reliable Insurer
While saving money is the objective here, that does not necessarily mean you should pick an insurer that offers the lowest premium. In fact, you should be cautious with insurers that offer low premium. Although some of them offer the lowest premium, it can cost you more in the end due to things like estimate lowballing.
So, what you need to do to save money is to choose a reliable insurer. Reliable insurers may not offer the lowest premium in the market. However, if their service is good and there is no other extra payment for any reason, they are your best option. You can see whether or not an insurer is reliable by seeing their customers’ reviews. Use these reviews to get an insight on how the insurer works.
Ask for and Get the Discounts
There are many kinds of discounts that insurers offer. While they are modest, they can be worthwhile. Most discounts are offered to people who live a low-risk lifestyle. For instance, drivers who already took a driver-training course and/or defensive-driving course. If you don’t know whether your insurer offers a discount or not, you should ask them.
Keeping a Good Credit Score
In most states, automotive insurance companies are allowed to use an individual’s credit score as one of the factors to calculate the premium rate. Ask your insurer about this. If your insurer does use it, you should keep or improve your credit score. In case external factors (recession, job loss, divorce, etc.) negatively affected your financial situation, tell your insurer about it and ask for an exception.
Report Reduced Mileage
Lastly, report reduced mileage. One of the contributing factors of total cost in insurance is the mileage. That is, the higher mileage your car has, the more expensive the total cost will be. The mileage average is 12,000 miles. However, not everyone drives this often. If you drive less than this, you should report it to your insurer. It may cut the cost of your premium.
These are how you get the right automotive insurance without having to pay more than you should. Of course, you still need to do it right. When you do it right you only pay the premium you need and avoid taking unnecessary risks. Since you only pay the premium you really need, you will also save your money, too.