Insuring a vehicle can be like working with a double-edged sword at times. If you load your policy up you can end up paying a premium above your financial means. However, not buying the coverage you need may cause you serious losses when you have an accident. You may not get compensated for all your losses or all the liability claims against you may not be discharged leaving you exposed against compensation demands from third parties. So, here are a few things you should know to arrange best cheap car insurance like a pro.
First of all, you need to know how insurance works to avoid making mistakes that will cost you dearly now or later. You may think that you cannot learn enough about your policy and how the prices work in a short time and don’t bother even attempting. However, that would be your first mistake. There are plenty information online and you can always ask brokers and agents. Furthermore, knowing a few basic facts may be enough to make the right decisions.
1. Decide What to Definitely Insure and What May Be Left Out
The trick is to make sure that you are properly covered for the losses you cannot handle on your own. And you can take a view on smaller damages like Rental Reimbursement Coverage. It would be an inconvenience not to be able to get a replacement car while yours is being repaired after a crash but wouldn’t ruin you financially. On the other hand, buying the basic state required liability policy may cause all sorts of problems if you ever cause a big crash involving several injured people and damaged expensive cars.
Get your priorities right if you want to avoid paying too high premium. Many people get influenced by small things when they are trying to figure out which auto insurance is better. That is why many companies load up their policies with many features to sway applicants. They may look great on the paper but what are the chances of making a claim on those covers? It is always best to cover the essential areas like liability, collision and comprehensive covers first and worry about the other additions to your policy next.
For example, a recent survey showed that about 40% of people are looking for policies with low deductibles. It is fine to look for them but don’t let these small issues overcrowd the scene, hide the big picture and prevent you from getting best cheap auto insurance.
2. Don’t Be Scared About the Costs until You Get the Quotes
Don’t make the mistake of settling with less than satisfactory coverage because you are worried that a coverage you want will cost you too much. Often motorists get scared to ask for quotes with different level of coverage when they see how expensive basic state required liability coverage is. However, you can get cheap quotes for full coverage.
For example, you may be quoted $400 for minimum coverage that doesn’t even offer you enough liability cover, let alone offering any protection for your own losses. When you look at this quote you may think that increasing liability coverage to half a million dollars and insuring your car properly with collision and comprehensive covers would cost you well over $1,000. However, the reality is that you shouldn’t be surprised to be quoted less than $700 for a full coverage policy with excellent liability cover. It becomes easier to find best cheap vehicle insurance if you know these little tricks.
3. Don’t Believe Myths until You Test Them
Here are some facts you should know about insuring autos. There are too many myths and they can hold you back or lead to wrong choices. For example there are couple of myths that are not necessarily correct. People assume or heard that less valuable or hybrid cars are more economical to insure. They even sound logical; “cheaper cars are cheaper to insure” sounds so convincing but it is not necessarily true.
An economy range automobile cannot withstand accidents that they may be totalled after a small crash while bigger cars will only sustain dents in a similar accident. They also cause a lot more injuries to their drivers and passengers. Overall owners of such automobiles are more likely to make bigger claims. Similarly, reports show that it costs more to repair hybrid autos because their parts are more expensive and rare.
There is nothing stopping you to get car insurance quotes with VIN number if you are serious about buying a particular automobile. You shouldn’t base your car buying decisions on myths but real information that help you get lower premiums. Vehicles insured plays a very important role in premium costs that you don’t want to buy the wrong one especially for the wrong reasons.
4. Don’t Tell Fibs when You Apply for Vehicle Insurance
Unfortunately, people approach filling quote forms the same way as they approach filling job applications. They don’t see problems with telling few lies thinking that companies wouldn’t know or check. They may actually not check and offer you a more affordable rates based on the information you provided. Remember always that you can have affordable and good car insurance without the need to tell lies.
Automobile insurers have the habit of investigating deeper into policyholders’ lives when they have a sizeable claim. They start checking your driving records, home address and any previous incidents, accidents and claims. You can see that you will run into serious troubles if they find you lied on your application. They can refuse to pay the claim, pay it only partially or demand additional premium calculated from the start of the policy. If this happens you are left totally to the mercy of your insurer. They have sufficient grounds to do whatever they want and you have to pay the additional premiums even if you decide to cancel your policy since you have already made a claim.
5. Preventative Measures for Lower Premiums
Traffic tickets can be costly more ways than you think. It will keep effecting your rates. Do you know how long does a ticket stay on your record? So, try to avoid them by driving carefully. Today, you can buy GPS devices that tell you when you break the speed limit, just in case you had a momentary loss of concentration. Claims affect your rates the same way as well. If you have a small damage that you can handle on your own you might just want to keep it to yourself and keep your no claim bonus.
6. Uninterrupted Vehicle Insurance Coverage Is Important
Today, most companies would want to see that you have had continuous coverage before they calculate the premium. If you have been cancelling policies, letting them cancelled by not making payments or dropping coverage all together you will have to declare it. You cannot hide it as there is a question asking about your previous policies. Besides, they share such information among insurers that telling a fib will get you in trouble in the worst possible time.
You should always try to keep your coverage and switch car insurers properly if you want best cheap automobile insurance. You may have been driving for a long time and have had no problems with carriers. Nonetheless, having a few months gap in your policy can make you lose all your good driving and no claim history. They have no way of knowing why you didn’t have coverage at that time. It may be because you have been refused cover. Unknowns scare insurers and they are only happy to offer discounts when they can see a continuous and checkable history.
7. Not Checking for Alternative Quotes Costs You
More than half of American policyholders don’t get alternative quotes when their policies are due for renewal. This means that they have no idea about alternative policies, insurers and quotes. This isn’t the way to get good and affordable car insurance. If they are really lucky they may be getting a pretty good deal. But it is more than likely that they are losing out on savings. Many studies show that loyal policyholders lose out in the long run.
You should always find out what the alternative providers will offer you by getting 3 – 5 quotes. There is no harm in knowing what is out there even you don’t intend to switch insurers at this stage for whatever reason. Many people managed to get their insurers reduce premiums after getting lower quotes from a competitor of their current provider. And a lot more switched after finding how low their premiums can go. It may be alright if you want a trustworthy insurer and you had no problems with yours. But shopping around is essential to find reliable and economical auto insurance.
8. Your Driving History Isn’t the Only Factor Considered
Traditionally, all you needed was good, clean driving history and no claim to get the best rates. However, a lot have been changing in the way vehicle insurance is priced within the last 20 years. Companies are now looking at many different factors starting with your background and ending with your financial credibility. They look at your education, profession, membership with certain work related associations and even the university you graduated can affect your rate along with your zip code, the type of a car you drive and your marital status.
Therefore, you still have a good chance of getting cheap and best car insurance even you have one or two blemishes in your driving history. For example, you can get away with one speeding ticket or small claim, if you have more than 5 years driving history. Most companies will not make a big deal out of it when they see that you are a good enough driver except this one mistake.
You should make sure that all your qualifications have been taken into account and you are getting all the discounts you qualify. Here are some of the well-known discounts you can claim to increase the savings or reduce the effects of a recent claim on your premium. You should also try to keep a good credit score for good and cheap auto insurance coverage.
9. You Need Good and Cheap Car Insurance Companies
We have already discussed how to determine the best coverage at the beginning. And we discussed how to find better quotes from various insurers in the middle. Now it is time to learn how to find the auto insurers with lowest prices. If you check that post you will see the companies that offer the best prices for each category of drivers. You should also get a few quotes from companies that aren’t listed there to make a decent comparison.
When we combine all these together we can summarize what we need to do to get great rates; you need to choose the right coverage, get a few quotes from reputable insurers and choose the one that meets your requirements the best.
10. You May Be Able to Claim More Money
Depending on where you live and who was at fault you may be able to claim for consequential losses too. For example, when someone else causes an accident you can claim more than just your repair costs from the third party insurer. When your car is repaired after an accident it is recorded and anyone checks the history of your car can find out about it. This will definitely reduce the sale value of it. Therefore, you can claim value depreciation as well especially from third party insurers. This provision may not be available when you are claiming from your insurer that you may need to consider to which insurer you will submit your claim.
In addition, you may be able to claim for the registration of the new vehicle and taxes when your car is totalled. You wouldn’t have to buy a new auto if yours wasn’t totalled and therefore registration and tax are the consequential expenses that should be included in the claim. Depending on which state you live you may be able to make the claim without the need to buy a new car or you may need to wait until you buy a replacement vehicle.
You try to get great coverage at reasonable price so that you spend as little as possible now and you get the maximum payout when you have a claim. So, it is important to know what you can and cannot claim too.