Auto insurance quotes – questions that will save your money
A lot of car owners will agree that at times auto insurance can get very costly for the ordinary budget. And having to deal with the economic recession, most of us would agree that learning how to cut insurance costs effectively is a necessity these days. When every dollar counts, getting smart about your expenses is the best way to cut down your costs without sacrificing insurance coverage. But how do you do that and what should you start with?
Fortunately, it’s not that complicated as it may seem. You just need to ask yourself the right questions about auto insurance to determine your exact needs and adjust your policy respectively. Four questions are very important, so make sure you put them right and get a definite answer:
Do I have the right coverage amount?
Collision and comprehensive coverage is the type, which is mostly influenced by the depreciation of the vehicle itself. So if your car is quite old, you may want to adjust or even drop collision and comprehensive. Check other types of coverage as well, since your needs could have changed from the moment you’ve purchased the initial policy. Marital status change, moving to another place or changing the car should make you review your policy according to your new needs. Keep the policy up to date, and you will always have adequate insurance costs.
Can I afford to raise the deductible?
You should know the rule about the deductible: the higher it is, the lower premium you have to pay. Deductibles are out-of-pocket expenses you have to cover before the insurance coverage kicks in. And the higher is the amount of deductible, the less the insurance company is bothered by minor claims and can set your premiums accordingly. However, keep in mind that you have to afford such expenses. There’s no point in setting a $1,000 deductible when you can’t afford paying so much money upfront in case of an accident. So keep your deductible within the range you can afford.
Can I opt for any discounts?
Ask your insurance agent or broker if you qualify for any discounts. See if installing additional safety features into your car will lower your premiums. If you are the good driver with a clean record, you can receive a discount too. Good students with a high semester average can get better rates. It never hurts to ask, but you can save some money as a result.
Did I shop around enough?
It’s not big news that different insurers can have different auto insurance quotes for the same vehicle. This is because insurance companies have different claim histories and use different algorithms when calculating their rates. Use it to your advantage and shop around to get the best rates. There are a lot of auto insurance quotes available online for free, and the more you get to compare the higher is your chance of finding a competitive policy in the first place.
With these questions in mind, it will be much easier for you to find the right policy to cover your needs. So keep asking them from time to time when you feel your auto insurance needs have changed and adjusted your coverage respectively.