As the saying goes, “better safe than sorry” and “prevention is better than cure” go, getting yourself the right insurance is vital. That applies even more so on your car, probably the second most valuable property you own. In the untimely event of a car crash, you are subject to either lose the car entirely, lose most of its resale value or pay a hefty sum for its repair.
By getting decent car insurance, you can reduce or completely finish that financial hit. You need to make sure that you’re getting the right coverage for your insurance as well as losing the least amount of money in premiums. A lot of consideration and thinking has to be done before you finally get your insurance policy from a provider.
By having our 7 tips in mind, you can successfully get the perfect insurance policy for your car. Consequently, you can drive stress-free and without worrying about the accidental loss at the hands of an unexpected traffic accident.
Get the right car
This applies before you even have the set of wheels, to begin with. That’s because, believe it or not, even the model of your car has a big impact on the insurance coverage. It’s always suggested to check the info on collision by the model of the car that you intend to buy, which you can see here. There are also specific car insurance categories that suit the needs of the owners of different kinds of cars.
Most car dealerships also provide you with data on the relative collision insurance cost of the car. Similarly, estimates of auto-insurance for all new models of cars are accessible online. Make sure to do your research beforehand. Find out about the kind of money that needs to be covered on your next car.
Avail the discounts
You’re entitled to a number of discounts from auto insurance providers. These are based on factors that basically assess the amount of risk associated with your car. These discounts can end up saving you a lot of money in the long run. These discounts include:
- good driving record discount
- eco-friendly car discount
- low mileage discount
- anti-theft and security devices discount
- retired citizens discount
- college student discount
- occupational discount
By making sure that you have a great driving record and the risk to your car being damaged or stolen is minimal, you can avail most of these discounts.
Choose the right insurance company
Before just setting out to search for the best premium on the table, take some time to thoroughly research the different insurance companies and their merits. The most important ones being their reputation and financial strength.
Although there are plenty of successful insurance companies in the current mix that are performing well, some may be rated higher than others. They are usually the better option when it comes to payments, claims, and queries. Make sure the insurance companies you shortlist are popular and well-reviewed to ensure a better insurance policy.
Moreover, the financial standing of the insurance company is also a major factor to consider when choosing the right company. Ratings for financial strength can be seen online to which is an indication of how well that company can perform in the long term.
Check rates annually
You usually get the personalized quotes from the agent that calls back from the insurance company. However, you need to keep on checking online for the rates being offered by other companies. Try making comparisons with other competitive company rates to ensure that you’re opting for the most beneficial deal from the mix.
Be sure to constantly check up on your coverage as well since costs and risks increase with time. Your coverage should follow suit. Hence, the insurance policy for your car could be changed constantly.
Maintain a healthy credit score
When having a low credit score of around 400 – 500, your chances of being offered policy and low premiums are reduced significantly. That’s because about 92% of insurance companies use credit-based insurance ratings and scores to assess the predicted losses. This determines the premium that you will get.
By having a high credit score of around 700, you can secure the best premiums on your car. Also, be sure to check how your insurance provider uses your credit score to decide the insurance rates.
Adjust the deductible
You can check the deductible from your policy. A high deductible will save you money in long term claims since your premium is reduced, but you’ll have to pay higher in the case of the first accident. However, by calculating the risk yourself, you can figure out the right deductible. You can assess your own driving record and then plan accordingly.
For example, if you have a flawless driving record, then a high deductible may just reap its rewards in the long run.
Update on reduced mileage
As mentioned before, you get discounts in the cases where you pose a lesser risk with your car. In the case of a change in employment, office, commute or permanent activity, there may be a significant decrease in the daily usage of the car, and hence mileage of the car. This directly affects the value of the car, and consequently, should entertain a better premium via the discount.
By driving less, you are at a lesser risk now and hence qualify for the discount. That’s why u should never forget to inform the insurer about such changes. Select insurance types that support these changes.
Your car insurance serves to not only protect your finances from being shaken to their core in the case of accidental damage but also to save you from the headache that happens as a result. Be sure to take this step thoughtfully.
Your insurance should exceed the basic necessary liability coverage which is a part of the law that ensures responsibility for accidental damage caused by yourself on others. But if you’re not willing to make an effort, then you’re better off selling your car at places that scream we buy any car and be done with all auto-insurance troubles altogether.
About Michelle Joe: Michelle Joe is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences, and express herself through her blogs. You can find her on twitter: @michellejoe524