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How to Choose the Right Car Insurance
Tips on choosing the best insurance for your car. Read these guidelines that help you select a reliable car insurance...
Nobody wants to spend more on car insurance than they need to, but finding cheaper rates can be tough. How to find good car insurance is a problem that every new car owner faces.
There are plenty of insurance companies competing for your business, both big and small. They all have different coverage options, making it hard to compare plans and figure out who has the best auto insurance prices.
But there are a few things you can do when you're looking for good car insurance:
Appear Good on Paper
In most cases, your credit score affects the car insurance quote you get. However, there are a few states where this is not the case. Those states include: California, Hawaii, Michigan, and Colorado. Insurance companies have said that customers' credit scores show how likely they are to file a claim.
If you have bad credit, you might end up paying hundreds of thousands of dollars more each year in vehicle insurance than someone with excellent credit, according to a study.Most insurers consider a FICO score of 560 or below as "bad" credit - although they can walk you through their specific requirements if your score falls into this range.Paying your payments on time and minimizing debt are both great ways to improve your overall credit and earn lower insurance prices. Check your credit often to track your progress.
Know the Essentials With Regards to Your State's Coverage Standards
The legislation requires that you purchase liability insurance, which protects the damage done to another car and its occupants if you are in an accident. If you loan or lease your vehicle, collision coverage is almost certainly required by your creditor. Each state has different standards and minimums for liability coverage, but it generally covers physical injury and damage to property. Uninsured and underinsured motorist coverage may also be included in liability insurance policies.
How to Save on 'No Claims Bonus' Insurance
Many insurance companies have different terminology for this, but it all comes down to a discount for not filing a claim. This is usually called something like "no-claims-discount" or (NCD), and the size of the reduction differs between insurers. If you're rated as a 'maximum' driver (which typically means no claims in the past 5 years), you could save up to seventy percent on your insurance premiums.
Even if you have a secured no-claims bonus, an 'at fault' accident could raise your premium. Some insurance providers will automatically increase the price after any claims are filed, even for incidents that were not your fault. Even something like hail damage can result in a higher rate from some insurers.
Save money by purchasing your home and car insurance from the same provider
Many insurance companies offer a discount if you have more than one form of insurance with them. For example, if you insure more than one car with the same provider, you may be eligible for a discount. Additionally, some insurers provided discounts to clients who have been loyalty customers for long periods of time. That being said, it's still beneficial to compare rates from different providers as buying from several insurers might save you money in the long run - even when compared to multi-policy discounts.
You Can Get Cheaper Insurance by Using Cashback Websites
In addition to regular comparison sites, there are also cashback sites, like Quidco and TopCashback. These work by giving you a percentage of your purchase back in the form of cash when you click through from their site before making a purchase. Although it's worth checking these out for deals, keep in mind that even with the cashback incentive, they might not always have the best offers available. If you're able to find identical coverage elsewhere for $150, then a package offered on one of these sites for $300 with a $75 refund is hardly considered a bargain.
How to steer clear of being charged a "loyalty penalty" from your insurance company
Many customers remain with their current insurer year after year, resulting in an annual price increase for renewals. In fact, insurers often charge more to renew than they do for new business. This is what's known as a 'loyalty penalty.' But it doesn't have to be this way.
The internet has made it easier than ever before to compare rates and switch providers quickly and easily. So if you're paying too much, shop around and see how much you could save by switching. You should avoid discounts that only last for the first year of your policy; they're simply a means to bring you in, and then you'll be hit with a hefty price increase after 12 months.
The better your safety record is, the older you are, and the healthier your finances look, the more likely it is that you'll get affordable vehicle insurance. Knowing a few insurance secrets and asking the right questions can go a long way. However, one thing is certain: if you've read through our list below, chances are good that you now know more about how to find good car insurance than most people on the street.
Some frugal car options could help you save more money on vehicles.
