No one relishes the idea of paying a lot of money for something they might never use. Could this be why we cringe just a little bit every time our car insurance payment is due. There is that reasonable chance that we will never get anything back for the hundreds of dollars we pay out every year.
Never-the-less, if you don’t want to end up shelling out tens of thousands of dollars after finding yourself in an accident, purchasing car insurance is definitely the smart thing to do.
Since it’s also a crime to drive without insurance, making sure you are insured will also help you keep from paying stiff penalties of up to $1000 or even having your license suspended in certain states if you happen to be caught driving without insurance.
However, even though auto insurance is required by law, that doesn’t mean you should pay more for it than you have to. Next time your insurance is about to roll over, you can follow these five easy steps to start putting more of your hard-earned cash back in your pocket.
Step 1: Shop around
The most effortless way to do this step is to use the web. There is a myriad of online services that cater to helping you simplify the process of creating and comparing insurance quotes online.
You can start with a Google search for “cheap auto insurance” and among the results you’ll find plenty of services that are designed to help you generate auto insurance quotes online, for free and devoid of pushy salesmen.
Just remember to restrain yourself from jumping on the first auto insurance quote you get. To be able to say that you’ve truly succeeded in getting cheap auto insurance, you’ve got to hunt down a policy that saves you every penny!
The beauty of the internet is, the more specific you are, the more chance you will find what you are after. For example, if you are looking cheap full coverage insurance, a site like Cheap Full Coverage Auto Insurance is an obvious place to start.
Wherever your research leads you to, we recommend collecting at least 3-7 quotes. Of course, the more quotes you create, the more confident you can be that you’ve found the cheapest auto insurance possible when the day is done.
Step 2: Compare all your quotes
Even though insurance quotes are free, they won’t do you much good if they stay unread in your inbox. Eventually you will have to sit down and take action on them by making assessments and comparisons.
Since you are hunting down cheap insurance, price will of course be your most important consideration. Once you start comparing, you might be surprised that the rates being offered cover a very broad range. In fact, the difference can be from $50 all the way up to $1000.
Why such a big difference? One reason is, some companies are so established and comfortable with their business and performance that they don’t feel the need to offer competitive rates.
On the other hand, smaller, less established companies might be striving extra hard to build their business and are thus more willing to offer a cut rate.
Just keep in mind, by choosing the cheapest rate you might be inadvertently choosing a company that doesn’t have the best customer service or isn’t as reliable with paying out claims.
However, cheap does NOT always correlate with poor service. There are always acceptations and this is what you should try to track down; a quality company that ALSO offers a low price!
A good place to learn about how auto insurance companies compare against one another is jdpower.com. They are the insurance industry’s “go to” service when it comes to revealing which companies are offering the best quality and service.
Step 3: Consult a reliable agent
It is always worth consulting an insurance agent even after you have received numerous insurance quotes. A local agent can be very helpful in decoding what each company is offering and go over the details of policies you are considering.
Ideally you can sit down with an agent face to face so they have a better chance to get to know what your needs and expectations are.
In the end, they even might surprise you by offering an even cheaper rate than what you found on the internet.
Step 4: Inquire about possible discounts
With or without an agent to back you up, you should always look as deep as you can for any extra savings. Typical discounts you should be able find are related to your age, car condition, and driving record.
If you have marks on your driving record, all is not lost. Taking a driving course will usually lead to a discount you would not otherwise be eligible for.
Do you have extra safety features on your car? Make sure you let insurance companies know about this. Cars with hi-tech collision avoidance features can earn you more discounts you won’t want to miss out on.
Are you a student with good grades? Good student discounts can be worth a lot. Every discount gets you one step closer to the cheapest insurance possible.
Step 5: Consolidate multiple policies
Most people need insurance for many things in their life. Some examples are:
- More than one car
- Home Insurance
- Renters Insurance
- Life Insurance
- Health Insurance
You will be happy to hear that bundling multiple insurance policies under the same insurer can also lead to substantial savings.
For example, if you purchase your home and auto insurance from the same insurer, you will be entitled to as much as a whopping 16% discount on average!
Cheap auto insurance is worth striving after and is actually very attainable. With a process of penny-pinching, you simply have to take it one step at a time. As long as you follow the steps outline above, there is a good chance you will end up with an auto insurance policy you are happy to stick with far into the future.