The objective of lowering the cost of car insurance is a concern for many Americans. Vehicle insurance is one of the highest ongoing costs each year for any American with one or more cars in their family. Let’s review a few things you should consider when trying to get the cheapest insurance possible.
The first thing is to appreciate that a lower price does not always mean a better insurance option. That, which we will develop throughout this article, is very important since insurance is a prevention tool. However, prevention can also take the form of the need to use the coverage. For example, if you have an accident. Therefore, the price is not always the only thing you should consider.
First step: knowing which car insurance is right for you
The first step before going to the market is to know what car insurance you need. It is important to consider several aspects to determine the car insurance you need; among which we would highlight the following:
- Where do you live?
- What use are you going to give the vehicle?
- What type of vehicle do you have?
- What is your driving record?
For example, insurance meant for a utility vehicle that will circulate in an urban environment is different from that of a car used in the countryside. Other aspects to consider are the number of kilometers per year and if it is driven by someone who has had to give several parts in previous years. Insurances will take into account a vehicle that will circulate a few kilometers per year, with a good driving record, and on less traveled roads.
Adding to all this, you must include other factors, such as your age, the age of the vehicle, and even elements such as your financial solvency. For example, remember that some insurance policies will propose an excess you will have to pay in the event of a claim.
Second step: go to the insurance comparators
The second step to reduce the cost of your insurance is to go to insurance comparators on the Internet. Indeed, you can also go to insurance agents who can make you offers on different companies. However, in the first place, it is advisable to review the offer of the comparators thoroughly.
And note that we speak in the plural: comparators. Bear in mind that Internet comparators, although they offer you many different insurances, generally have preferential agreements with some companies. Therefore, when you compare other platforms, you get a much broader picture than if you do it only on one.
A good idea for this process is to make the comparison on several platforms and select the best two or three offers from each of them. With these offers, you can start with the plan’s third phase to make your insurance cheaper.
Review and compare prices and coverages
Let’s say you already have at least five or six insurance offers on your hands that are cheaper than the one you currently have. Your first impulse would probably be to choose the most affordable of them all. That can be a mistake.
It is very important that, in this third step, you check the relationship between price and coverage. If you have already obtained in these policies a cheaper proposal than the one you currently have, the primary objective is fulfilled. Now you have to choose the best among them, and it will not always be the cheapest.
Compare one coverage to another, see if it has an excess, what are the amounts in case of an accident, what range you have regarding roadside assistance, etc. It is a slow job and can be somewhat tedious, but in the end, it will give you a great perspective on the best insurance for your pocket in terms of value for money.
Remember, if you did well in the first step and know the insurance that suits you, you simply have to apply this knowledge to this selection process.
Take out the policy and check the bonuses
Once you have chosen the insurance you want to hire, cheaper than the one you already have, there is still a step that can lower the cost even more. We are referring to the bonuses.
Reviewing the possible bonuses that insurance can offer you is very interesting. In fact, in the previous step, you should have already reviewed these bonuses.
Not all insurances offer the same level of bonus. In some cases, the reward will be for a good driving record. You may also get a bonus for having more than one vehicle insured with the same company, etc.
So, once you review the different bonus conditions, you can even go back a step to see if another insurer offers you better bonuses. That, too, can be a bit tedious, but in the end, it’s all about getting a good amount of dollars a year cheaper.
Keep in mind that, with the great competition among companies, insurance is becoming more accessible year after year. That means it is more challenging to get cheaper insurance today than a decade ago when the negotiation could be more personal.
However, in general, it is still possible to obtain good offers and lower costs. Remember, a good driving record will also greatly influence this.