When insuring cars one of the first things that is considered is the details of the vehicles insured along with drivers listed on the policy and limits on occasional drivers. These are the key factors that affect the risk levels and consequently premiums charged to insure cars. You can achieve as much as fifty percent lower car insurance rates by paying attention to a few discounts on offer and avoiding certain pitfalls.
So, it is helpful to go thorough these savings quickly in one place. Various ways of achieving cheap premiums, good coverage and finding affordable car insurance companies for your circumstances are explained in detail below. You can find much more information on individual areas discussed below and other related topics by searching the site.
How Much Does It Cost to Insure a Car?
As mentioned above specifics of vehicles insured attracts plenty attention from insurers. Particularly, collision and comprehensive coverage pays for damages to insured cars. Therefore the premiums will be directly correlated with the price of them. First of all, you need to decide if you want to buy liability only or full coverage auto insurance. You can see comparison of these two types of policies and their prices and find an answer to what is the cheapest car insurance and more on that page.
Alternatively, you can enter your zip code above on our auto insurance quote comparison platform and see if you can get a firm quote for the type of automobile you own or considering buying. Promise, it won’t take long before you know the exact cost of insuring cars you own.
How to Insure a Car with Big Discounts
The choices you make will determine how much you have to pay for your coverage when you insure cars. Furthermore, auto safety features, its security, price and the way it is insured will affect the overall costs. For example, a policyholder with a safer automobile would get discounts when the one with a sport utility vehicle would usually pay more. Here are some saving opportunities when insuring cars.
Buying Safer Cars: Insurers like every additional feature that will reduce claim payments. Especially injury claims can amount to large sums. When a vehicle is designed to reduce such injuries and damages to properties they deserve the discounts offered. Besides, safer vehicles protect the family members better. So, you can invest a little for extra piece of mind and get some of that money back with premium discounts.
Multicar policies: Policyholders with several automobiles can take advantage of multi-car insurance discounts. Having them covered under one policy can have several advantages including less administration. The idea behind a good discount is that you will only drive one of them at a time. All the cars in the policy do not have to be owned by one person as long as they are owned by family members residing in the same address.
Installing Anti-theft Devices: This could make a real difference when insuring vehicles with expensive price tags. The high end cars are always targets of thieves that installing tracking devices, immobilisers and alarm systems on them can save money. Some companies may refuse to insure them if such devices are not installed.
Insuring Cars up to Current Market Value: Vehicles lose value pretty fast especially in the first year. Considering the changes in the technology most people like to buy newer automobiles. And older automobiles start becoming trouble after a while with mechanical breakdowns. There is no point insuring a car at a price you paid a few years ago because companies would only pay open market value when it is totalled. So, every so often have a check its current market value and reduce insurance accordingly.
Drop Coverage for Older Cars: Furthermore, it may be better dropping coverage entirely for older vehicles. After deductibles you may not receive much for it. In fact, the savings you get by dropping coverage may be more than what you will receive if they were totalled. Furthermore, you would save the hassle of filling claim forms or losing your no claim bonus.
Challenges with Insuring Cars of Different Types
Smaller Cars: Many people may think that it is cheaper to insure cars with small engine and body. However, those autos don’t stand well in accidents. And they are easy pickings for thieves and tugs due to lower specification security features. Keep this in mind if you are buying them only because you think it is cheaper to insure them.
Sports Cars: Engine size, potential speed and price of them make insuring them expensive. When you have a good driving history premiums may still be alright. However, it could be horrendous to insure cars of high risk when you have a bad driving history or you are young. Having high end security on executive and expensive sports cars will reduce the costs. Satellite Vehicle Tracking, alarms and immobilisers may be required by most companies anyway. You may also have a better chance of getting affordable quotes from high risk auto insurance companies than most others.
Sports Utility Vehicles (SVUs): From its appearance many people may feel safer with these autos. However, they are known to cause more injuries especially to passengers and drivers of other cars in an accident. They are not great in handling curves as well. Overall, you should think twice if you believe you are safer in them and you will get lower premiums.
Classic Cars: A well maintained classic automobiles can really be valuable. The price of them can vary hugely depending on their conditions. Therefore, it is essential that these vehicles are valued properly before you insure classic cars. And the auto insurance company agrees to pay that valuation should it be totalled. Otherwise, there could be serious disputes as to how much will be paid for claims. Also, these cars are not usually driven every day. This should be made clear to the company as rates will be cheaper based on mileage.
Hybrid Cars: Although some companies offer savings for some of the environmentally friendly vehicles there are some safety issues concerning underwriters. One of them is that some models are far too quiet for bikers and pedestrian to notice them coming. These issues may be addressed with artificial sounds on the new models. So, the costs depend on models of insured cars.
How to Find Affordable Auto Insurance Companies
Affordable car insurance companies changes depending on risks associated with insuring a particular car and driver type. In other words, the cheapest car insurer for good drivers wouldn’t necessarily offer the lowest rates for young drivers. In the same way, a cheap auto insurance company for a minivan may end up very expensive when you want to insure a Sports Utility Vehicle (SUV).
Have a look at this page where we listed the cheapest auto insurance companies for various driver types and see which insurers may offer you the best prices. And get a several more quotes to make sure you have enough companies to compare for price, coverage and quality.
And these are the possible discounts you can get depending on your circumstances. You should try to qualify for most of them in order to get the lowest car insurance rates.
Discounts Offered for Drivers: Personal circumstances play a key role in auto insurance calculations. Age, Gender, Education, Occupation, home address and credit score are some of those factors considered in the process of pricing to insure cars. On the other hand, economic position of motorists would affect other factors as well. A well off motorist can invest in a safer automobile while a driver with tight budget may struggle to even maintain the car owned currently.
Savings Based on Driving History: Many vehicle insurance companies offer the largest discounts to drivers with no claims and traffic violations up to five years. Companies look for proofs to justify the savings. Managing to stay trouble free for a while is a good indication of the risk levels. Good drivers have many choices from companies to policies because quite a few packages marketed target them. When you have a few claims and traffic violations in recent years you may find that some companies may not even offer a quote at all.
It is also worth mentioning that regardless of your background, driving history or the type of vehicle you want to insure you can save money by shopping around for the best auto insurance quotes. Every underwriter looks at risks differently and comes up with their rates. You may be perfect candidate for one company to insure cars owned by you while the other will scorn on your quote application.
A very good example is that some companies base their premiums mainly on driving history. However, quite a few others look at what type of a person you are, what your income and credit score is before they can offer you the best auto insurance prices. Therefore, it is in your best interest to go through your options at every renewal even your current insurer has been coming on top in the last few years. Things change.