5 Useful Tips for a Cheap Car Insurance

A third-party car insurance is the minimum that a car owner needs to have as far as the Indian law goes. Purchasing a comprehensive insurance policy is left to the owner to decide. However, the bottom line remains that getting any of these is expensive. But, what if your car meets with an accident or gets stolen? It’s not always someone else who faces these situations. It could happen to anyone including you. You need to have your car insured. This article offers 5 useful tips on how to obtain a cheap auto insurance policy.

1. Compare and Save
With the increased number of automobiles in the country, the number of auto insurance sellers has also increased. With plenty of these providers, the competition has been getting stronger with one company trying its best to outdo the rest with attractive offers. With a little research, a judicious customer will be able to judge which car insurance provider offers the best policy at a low rate with great coverage. Remember, no insurance company is a non-profit organization. Just as you would have done while purchasing your new car, or while applying for the car loan, negotiate, collect car insurance quotes from multiple providers, compare some of the best deals and save.

2. Choice of Vehicle
The insurance amount also depends on your vehicle and the risk involved with the car. A very expensive car, say a sports car, will certainly bear a higher insurance premium. Then, there are certain cars shortlisted by companies as the most stolen cars. These cars too come attached with higher risk, and so, with a greater insurance amount too. On the other hand, vintage cars are driven by the more careful drivers and everybody knows this fact. They are likely to draw a lower premium. If you have a car with parts that are too expensive to replace expect a slightly expensive premium. Meanwhile, owning a rather safe package with plenty of safety features pre-installed in the new car also means that your insurance premium is going to be lower.

3. Go for the Basic Level of Coverage
Anything can happen on the road, but what’s the probability of fatalities? Very low, right? Insurance companies are intelligent enough to calculate the number of accidents or thefts associated with cars during the course of the year. Surveys are conducted to calculate this and the insurance amount is planned. However, these companies make huge profits and many a times the amount goes unclaimed. So, go for the basic level of coverage. This would be an intelligent and cheaper move. Set aside the amount you would have spent on the comprehensive insurance; save it in case of an eventuality.

4. Making Lump Sum Payments
Many insurance providers agree for monthly car insurance premium payments. However, it is advisable to pay it all at once as many companies offer discounts for lump sums paid on premiums. This needs to be checked while making the auto insurance deal. It is of course easier to pay the amount in monthly instalments, but if funds are available, paying the entire amount is intelligent and cheap.

5. Improving Safety
Insurance providers are usually lenient it comes to offering auto insurance to security-conscious car owners. Having security items installed in your car like alarms and immobilizers could get you a good discount on your insurance policy or the premium. And yes, nobody expects you to install airbags in your car if they do not have them. That can cost you a lot more. Instead, choose a variant of the car you like to buy that has airbags already installed. To that, add a clean driving record and the insurance provider will most likely decrease the premium.

How Are Your Car Insurance Rates Calculated?

The average American makes car insurance payments his/her entire adult life and most people are baffled by/ discontented with their car insurance rates. Since it is a consistent an unavoidable expense, it is best to understand what determines your insurance rates and use that knowledge to get the best coverage you can. There are many different factors that come into play when determining insurance rates.

Age: According to a study conducted by the Center for Disease Control and Prevention in 2009, approximately 8 drivers between the ages of 16 and 19 die every single day due to an automobile crash and drivers between the ages of 16 and 19 are at least 4 times more likely to cause a car crash than drivers from any other age group. Since young drivers tend to be unsafe, their insurance rates tend to be very high, which is unfortunate since many of them can’t afford to pay so much, given the pressures of minimum wage jobs and /or their academics. They can however, ask their insurance company if they are eligible for any discounts; many companies offer discounts to students who complete a defensive driver’s course or excel academically. Once over the age of 25, most drivers are able to find more affordable car insurance quotes.

Driving record: Your driving record plays a huge part in determining your insurance rates. It is an indication of how likely you are to make claims and have claims made against you. Even something as minor as a few speeding tickets can send your car insurance rates through the roof. The defensive driver’s course mentioned above helps you keep your driving record clean, which in turn helps you find reasonable car insurance quotes and keeps your insurance rates low year after year.

State: The average cost of gas, rent, food, cigarettes, etc is different in every state. The same goes for insurance. Depending on the population, the climate, the average accidents per year, legislation and many other factors, each state has different car insurance rates. Also those who only want to purchase the bare minimum insurance required by law should keep in mind that every state has a different minimum requirement, so the amount they spend on insurance will depend on the state they live in. For example if you live in Texas, you are required to have liability coverage for bodily injury of at least the $30,000 for one person and $60,000 for all persons. In Texas your car insurance must also cover a minimum of $25000 in coverage for property damage. On the other hand, the minimum requirement for Arizona car insurance is significantly lower; Arizona requires you to purchase liability coverage of $15,000 for bodily injuries sustained by one person, $30,000 per accident for all the people injured and $10,000 in property damage coverage. An important thing to keep in mind is that the minimum coverage required by your state may not be sufficient in the event of an accident. You may end up spending an obscene amount on injuries, damages and medical fees if you don’t get adequate coverage. It is advisable to carry collision and comprehensive coverage, PIP (depending on which state you are in) and uninsured and underinsured motori’s coverage.

Demographics: Your insurance rates tend to reflect who you are. Your age, marital status, address, credit history, etc are all taken into consideration by your prospective company before they offer you a car insurance quote. We have gone over the significance of age, but why do the other details matter? A high frequency of natural disasters, crime, and vandalism within close range of your zip-code all suggest that there is a greater probability of you filing claims, hence it is in the best interest of your insurance provider to charge you higher car insurance rates than they would someone who lives in a sleepy retirement community. So keep car insurance rates in mind when you go house hunting. Your marital status, income levels and credit history provide an insight into your economic stability, giving your prospective company an idea about your ability to pay off deductibles and make premium payments in time, hence also affecting your insurance rates.

Your car: The car insurance quotes you receive depend on the make, model, safety features and condition of your car because some cars cost more to fix than others and the presence of safety features diminishes the risk of injuries. The safer your car, the more affordable your car insurance rates, so install safety features like air bags. In fact some insurance companies will even give you a discount for doing so.

Premiums and Deductibles: The higher your deductibles, the lower your premiums. However, make sure you can afford the deductible you opt for rather than raising it thoughtlessly just because it will lower your insurance rates.

Insurance Provider: Finally, insurance rates vary from provider to provider. The car insurance quotes you receive from one company may be higher than those offered by another. Similarly, one company may choose to raise you premiums after your first accident, while another company may have a policy to overlook the first accident. Do your research before making a decision. The obscure company offering the cheapest insurance rates may cost you a fortune in the long run. Do not settle for anything less than a reputed, reliable company that will come through for you when you need it to.

Car Insurance And Its Importance

Car insurance is important for a number of reasons. Without car insurance you could get a ticket which is not cheap. If you do not have insurance on your car you could also end up paying a lot of money to fix your car if you are in an auto accident. If you hit someone else’s car and you do not have car insurance it will be up to you to pay to fix their car. If you do not pay to fix the other person’s car you could end up getting sued.

Car insurance is just as important as home insurance. You would insure your home so why not insure your car? Your home and your car are both very expensive to repair if you do not have insurance on them. You can get insurance for an affordable rate on your home and your car.

The best way to get affordable insurance is to do research on the internet. There are several websites that you can go to that will give you multiple quotes so that you can find the cheapest plan available. These days everyone is looking for a way to save money whenever they can. There is no reason to pay a fortune on insurance when you can do research and get a great rate.

The cheapest way to get insurance on your car is to just get liability. Liability may save you money but it only covers the other drivers car if you have an accident. You will still be left to pay to fix your own car. Full coverage is a little more expensive but it is worth it in the long run.

You can get several discounts on car insurance but the best way to do that is to call an insurance company and speak with an agent. The insurance agent should be able to help you find all the discounts that you qualify for. If you have a clean driving record with out any tickets or car wrecks then you should be able to get a discount for that.

If you have taken a driving class you can also get a discount for that too. The type of car you drive will also make a difference in the price of your insurance premium. A sports car will cost you more to insure than a family car. You can also get discounts for insuring several cars with the same company.

Some companies will even give you a discount if you buy your car insurance, house insurance, and life insurance from the same insurance company. Saving money is important especially these days when everyone is struggling to make money. Just make sure that you ask your insurance agent about any discounts that their company offers. Your agent should be able to help you out with saving money on discounts.

Without auto insurance you could end up having to pay a hefty fine if you get caught. Insurance is important to have on your car, home, life, and even health.