If you’ve ever bought auto insurance, you know how complicated it can be to sort through all of the factors that go into determining how much you’ll pay and which company will give you the best deal. Luckily, all you have to do is follow these five easy steps to get the best auto insurance rates and save big on your coverage!
Why do you need auto insurance?
You need auto insurance because it protects you from financial ruin. If you get into a car accident, your insurance company will pay for repairs or replace your vehicle if it is totaled. You’ll have money coming in instead of having to pay out of pocket for everything. Plus, if you are hit by an uninsured driver or involved in a hit-and-run accident, your insurance company will help cover medical expenses and lost wages while you recover. A savings account can’t do that! Your insurance policy will also protect you and your passengers in case of an accident where someone else was at fault. Most states require drivers to purchase at least liability coverage, which pays for any damages you cause others up to the limits of the policy.
Basic policy types
There are three basic types of auto insurance policies: liability, collision, and comprehensive. Liability covers you when you cause an accident that leads to injury or property damage. Comprehensive coverage pays for repairs if your car is damaged by something other than a collision, such as vandalism or weather damage. Collision coverage pays for repairs if your car is in an accident with another vehicle or object. Like comprehensive, this policy can be purchased in addition to liability coverage. You will only need this type of coverage if you have borrowed money or owe more on your car than it is worth. If you don’t have much equity in the car, then comprehensive will suffice
Tips on finding the best rate
1 Determine your coverage. This will be a big factor in determining your rate, since some companies offer better deals for different types of coverage.
2 Choose your deductible. The higher your deductible, the lower you will pay in premiums but the more you would have to pay out-of-pocket if you do get into an accident.
3 Look for discounts or multi-policy discounts. Many insurers will give you a discount if you bundle auto insurance with your homeowners insurance or another type of insurance from the same company.
4 Don’t assume because one company has offered a low quote that it’s not possible to find something cheaper elsewhere; many people shop around and find that there are actually several affordable options on the market for them.
5 Check other types of car insurance as well: comprehensive, collision, medical payments etc.
ways to save on car insurance
This may seem like a no-brainer, but it’s important to know what you’re getting into when shopping for auto insurance. Some companies offer discounts if you’re over 50 or if you have multiple drivers, while others provide a discount if your car has anti-theft devices. There are also policies that cost more but will pay out more in case of an accident. Make sure you know all the details before making your decision! The average premium for car insurance is $1,427 per year. That can vary depending on where you live and who provides your coverage. We looked at 10 popular cities to see how much different types of people would pay for their annual premiums: someone with one teenage driver, someone with three teenage drivers, a middle-aged driver without any teenaged children, etc. The average premium for this group ranges from $936 to $2,047 annually. Of course, there are other factors that go into pricing–like if you live in a city with high theft rates, or drive a luxury vehicle–but this gives us an idea of the general range most people fall into when they’re looking for car insurance.