Since car insurance is mandatory under law, it is now illegal to drive a car that is not insured. It is always a good idea to keep your vehicle insured at all times but finalizing a car insurance policy can get confusing at times. The more assets and income you have, the more car insurance you need. Like buying a car, there is no single best solution when it comes to buying car insurance. You can shop for car insurance by consulting the largest insurers. Then, contact one or two independent agents who can quote premiums from more than one company. There are direct-marketing companies which do business over the phone rather than through agents and offer some of the lowest rates. Ask for an itemized list of coverage and costs. Many car insurance companies now offer online quotes which allow you to compare rates in the comfort of your own home.
The biggest difference you can make is to buy a vehicle that qualifies for a discount or at least doesn’t carry a surcharge. When you buy a new car, the price includes the cost for a car insurance policy. Ask your dealer about the cost of insuring vehicles you are interested in before you make your purchase decision. Review the status of all the drivers in your family with your agent. Most discounts apply only to one portion of the policy, so don’t expect dramatic savings.
Increase your car insurance deductible for collision and comprehensive. Also, think twice about filing small claims with your insurance. While renewing your car insurance policy, shop around and study the fine print of your policy to see if its terms, or your situation, have changed. Another company might have better rates, but you won’t know unless you compare. Most insurers give rates over the phone and many via online computer services, making it easy to compare car insurance premiums.
Drop collision coverage on older cars. Claims are limited to “book” value, so you’re not likely to get much anyway if you car is more than seven years old. Drop coverage for such extras as towing costs. If your health insurance provides generous coverage, consider dropping the medical-payments portion of your car insurance policy. While it is dangerous to be underinsured, having too much insurance can be an expensive mistake as well. Value for money is something everyone looks for when buying car insurance. We prefer to purchase a car insurance policy that gives maximum coverage at a minimum rate. That may not always be possible and spending a little more for optimum coverage is the smartest move you can make. Get smart insurance instead of cheap.