Every state in the U.S. requires that drivers have insurance on their vehicle. If you took out a loan to purchase your car, then the financial institution also has rules in place that say how much coverage you should have.
Thus, after purchasing your vehicle, you may be wondering how to shop for car insurance.
Finding the right affordable car insurance isn’t always easy.
There are many different options to choose from, and reading the policies and determining which option is the best for your wants and needs can be incredibly confusing. There are ways to overcome these challenges, and if you read on, these nine tricks can help you when shopping for car insurance.
1. Understand the Different Types of Insurance Coverage Available
When it comes to looking for affordable car insurance, the first thing you need to do is understand what types of insurance you can get. Without this knowledge, you won’t be able to compare different policies to find the best one.
Some of the most common types of insurance policies you’ll find include the following:
This insurance pays out if you are the reason for an accident or damage to another person’s property or cause bodily injury. It is required in most states that drivers have a minimum amount of liability insurance.
The two types of liability insurance coverage include bodily injury liability and property damage liability.
This insurance pays for any damage that might occur to your vehicle if you hit an object or another person or if an uninsured or underinsured driver hits you.
There is a deductible with this insurance, which means you’ll have to pay some money out of pocket before the rest of the coverage kicks in. In addition, collision insurance won’t pay more than what your car is worth in cash.
This type of insurance will pay out if your vehicle is stolen or gets damaged by anything other than an accident, including fire, animals that you accidentally hit on the road, a flood, or objects that might fall onto your vehicle. This insurance won’t pay for damage or injuries that you cause to other people.
2. Get a Quote
When it comes to how to shop for car insurance, which type of coverage you’ll need on your vehicle will be determined by state laws and what the lender requires. In Chicago, Illinois, there are minimum amounts of liability coverage that you will be expected to carry on your vehicle. If you don’t have these, then you can be fined and/or have your license suspended.
Finding an insurance provider that can get you these required minimums at an affordable rate will mean getting quotes from a variety of different insurance companies.
There are several ways to do this, including going through an agent or doing a search online. Once you have received several different quotes, you’ll be able to find that one that will work for you at a price you can afford.
3. Consider Working with an Agent
When shopping for car insurance, working with an agent is usually your best option.
Not only will they go out of their way to find the most affordable insurance for your wants and needs, but they are there to answer any questions that might arise.
Insurance can be incredibly confusing and convoluted, but having someone who can explain it to you in clear, simple terms will ensure that you get the policy that is right for you with the coverage that you need.
4. Improve Your Credit Score
How much you pay each month for your car insurance will depend on your credit score. The lower the score, the higher your payments will be. Thus, when it comes to how to find the best car insurance, take the time to improve your credit score to get the most affordable rate.
5. Opt for the Smallest Vehicle Possible
The larger the vehicle you buy, the more it will cost to insure it. Thus, if you’re looking for the lowest monthly payment possible, try to buy the smallest vehicle that will work for your needs.
If you don’t have a large family with a ton of stuff that you need to move from one place to another, then consider getting a commuter car. Not only will this save you on your insurance premium every month, but you’ll also save on gas.
6. Increase the Deductible
One of the easiest ways to reduce your monthly insurance cost is to increase your deductible. Depending on the policy you get, the deductible can range from $250 to $1,000. This is the amount you’ll have to pay out of your pocket if you need to file an insurance claim. Make sure you have this money on hand in the event an accident occurs.
7. Add Anti-Theft Devices
Adding an anti-theft device can help lower your monthly premiums and make your car insurance more affordable. This will depend on the insurance company you go with, but they should be able to let you know exactly what device to get and how much of a discount you’ll get by adding this to your vehicle.
8. Take a Defensive Driving Course
You may also be able to get discounts if you sign up for a defensive driving course. If you have points on your license, taking this class could also be a way to reduce those as well. Talk to the insurance provider to see if taking this course is worth the time and effort, and then figure out where you can find an accredited course to help save some money.
9. Search for Additional Discounts
When it comes to how to find the best car insurance, you want to find a policy that covers what you need it to cover and is affordable. Some companies offer other discounts in addition to having a good driving record, a good credit score, and a smaller vehicle.
Some of these could include the following:
- Discounts for having more than one vehicle
- Bundling home and auto insurance
- Being a member of a certain organization
- Being able to pay the entire 6-month premium at once
- Signing up for autopay
- Agreeing to receive electronic bills and other documentation
Speak With an Agent About How to Shop for Car Insurance
If you are wondering how to shop for car insurance, the best advice is to work with an agent who can help you find the best insurance coverage for your wants and needs. They’ll also be able to answer any questions that might arise.
You have to have insurance to lawfully operate your vehicle on the road, and at Insured ASAP, we’ll get you a quote and coverage as quickly as we can. Contact us today to see what we have to offer.
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