There are a few hidden discounts and easy saving opportunities with hardly any qualification requirements so people can take advantage of them right now while waiting for their driving history or credit score to improve. However, many vehicle owners are missing out on these secrets to cheaper car insurance because they aren’t aware of several essential points. Also, companies and agents apply certain strategies to keep their customers buying policies. Once you know them you don’t get caught.
For example, qualifying for a 5% loyal policyholder discount after five years is great but this may be nothing in comparison to other savings you can get through other companies. For example, many companies offer discounts and special rates to convince new applicants to switch and they are usually more than the loyalty discount. So, the secret here is not to get too hung up about a small detail and get to the bottom of it by shopping around for the best auto insurance rates.
Don’t be tricked by simple sales tactics. Remember, a policy is cheap only if it is hard to find the same coverage anywhere else at a similar price.
Here are 10 simple secrets to cheap auto Insurance;
- Your driving records are public knowledge and follow you wherever you go. Many people believe they have built a record with the current automobile insurance company and that is why they are getting good deals so they were to switch to a rival they would start all over again. It isn’t true because the DMV keeps Motor Vehicle Records. So, every company you apply for a quote can see your records through the DMV and apply appropriate rates. Besides, some companies offer much larger discounts to applicants with clean driving history and they should not miss the opportunity to save as much as possible when they are considered low-risk by almost every company they apply to.
- Early renewal can save money. Statistically, motorists who start shopping around as soon as they get their renewal quote from their current vehicle insurance providers not only can find better deals but also can take advantage of around 5% early renewal discounts. Many companies reduce their quotes a bit more when the applicants decide 7 – 14 early to buy their policies and set up to renew at the expiration date. Some companies like State Farm can offer as much as 10% savings for advance purchase.
- Don’t view cheaper car insurance quotes with suspicion. Over 70% of policies are sold by the 10 largest and most recognized brands in the US like State Farm, Allstate, Progressive and GEICO. So, just ignore if anyone suggests that cheap automobile insurance carriers are no good because it is likely that one of these most established vehicle insurers is going to be offering that low quote. You probably have heard such names so many times and will have no objection to any of them. Even between them and for a basic Liability policy there could be hundreds of dollars price differences. These differences would be heightened in big cities, for high risk and young drivers. So, don’t be scared you will end up with a hardly known company if you shop around.
- Pay-in-full and save 10% on average with some companies. Many companies including some of the large ones like Progressive clearly advertise that they offer savings for paying the premium in full and the savings can reach 10% once you include the fact that you avoid arrangement fees for installment plans too.
- Youngsters may save big with usage-based policies. Teenage drivers suffer because they have no driving history and they are considered high risk. So, think out of the box if you want the most affordable auto insurance for youngsters and look into pay-as-you-drive alternatives, which will allow providers to see your driving habits and offer large savings if you prove to be a reliable driver.
- Don’t get too comfortable with the auto-renewal facility. It is true that this is a step to ensure there is no lapse in coverage. However, many people get too comfortable because they know their automobile insurance policy will be renewed even if they do nothing and the payment will be taken from their accounts. Not only they should look for more and bigger discounts at each renewal but also look for secret ways of lowering vehicle insurance.
- Look for typical cars. The vehicle you own is very influential in premium calculations. Motorists with popular sedans are likely to save a lot of money on insurance because they are usually cheaper to insure and they are reasonably priced. Also, they should be careful with modifications, which can make their automobiles high-risk and expensive to insure. And generally it isn’t easy to insure vehicles with built-in titles due to their history.
- Loyalty hardly ever pays. Often companies offer a small discount for their loyal customers. However, this discount just masks the fact that they are keeping their loyal policyholders in older and higher rates because their algorithms are set to optimize prices by figuring out which customers are going to be happy with a small discount and not shop around. You may believe they are looking after you and they may be but you need to confirm it by getting alternative quotes and seeing if they are really competitive.
- Auto insurance shoppers should look at the final price. Many companies offer bigger discounts to new customers than loyalty savings they can get from their current insurers. So, motorists shouldn’t pay too much attention to a single discount but look at the final price.
- Get at least 5 quotes to compare. You may be suspicious to see one low auto insurance quote. However, you will be more comfortable when you see several other companies offering similarly economical premiums. Then, you will be convinced that there is nothing wrong with them but your existing insurer is expensive. Also, chances of finding a better deal increases as the number of quotes you get goes up.
Companies reward applicants with so many discounts. Some of them are obvious but they consider many details when they offer a quote so it is getting harder to predict which carrier would be cheaper in the end. That is why it is important to get a few quotes to find the best price. Even after finding the lowest rates, you can still reduce premiums further by utilizing savings for advance purchase or paying the premium in full. So, It is worth learning and using these secrets to cheap car insurance.