Car insurance usually tends to be the largest expense share in terms of car ownership, just right behind fuel. And one of the quickest ways to reduce your bills is to choose a correct insurance and to do it right. That is not an easy task as it may seem, but it is worth to make some extra efforts in order to cut your insurance costs.
In the first place, you should understand what makes your car insurance more or less expensive. It also occasionally happens that people who had zero insurance claims saw their insurance premiums go up – this might have something to do with the changes in the company’s policy. Overall, here you can learn how to pick your car insurance in a right way and cut your bill.
Choose the Right Insurance Coverage
The first step in the entire process of getting car insurance is definitely not calling your insurance company. At first, you must decide what type of coverage you need. All American states do have minimum car insurance requirements. Typically, the basic car insurance coverage is liability insurance, known also as one-way insurance. In any case, you should find out what the term “liability” in your insurance policy means and set the coverage you appropriate (there are limits imposed by the states).
In most cases, however, customers turn out to have an insurance with comprehensive or collision coverage, even if they don’t want it. Obviously, such an additional part of the insurance eats up a good portion of your expenses. If, nevertheless, you want to add a comprehensive or collision coverage, you should calculate what kind of deductible you want in the insurance policy. The deductible will be listed in your insurance policy – the higher is the deductible, the lower the cost of insurance is.
Pick an Insurance Company
The next step is to choose a right insurance company. You shouldn’t only hunt for an insurance company with the lowest premiums. Also, you should research about the financial health of an insurance company you are considering – this will help to ensure that your company won’t default on its obligations towards you.
Another crucial thing you should know about is whether this particular insurance company will use your credit score in order to determine the price. This may not only lower your credit score (after a hard check), but also increase your premiums if you are credit score is low.
Contact the Companies
Once you have prepared a list of insurance companies you are considering, you can start calling to those companies in an attempt to get the best deal. For that purpose, you are likely to be asked certain information, such as your driver’s license number or any insurance claims you had in the past. If you don’t know that information, your current insurance company may (upon request) provide you with a letter of claims experience.
Additionally, you should be aware that there is a list of factors that may determine a discount on your premium and, thus, lower the cost of your insurance. Some of such factors and discounts include:
- Winter storage discounts
- Low mileage
- Good driver discounts
- Green-friendly vehicle
- Retiree discounts
- Alarm or track device discounts
- Telematics discounts
- Professional, occupational, university degree or association discounts
- Student discounts.
File a Car Insurance Claim
Indeed, it would be best if you would never have a need to file an insurance claim. However, once you have got a vehicle insurance, you should get to know certain things before you will run into an accident.
First of all, having an insurance means that you have a legal obligation to stop if you are involved in any kind of accident – even if there, as you may think, was no damage to any cars. Secondly, you should never admit your responsibility. If you want your insurance company to take the case and cover your claim, you should let them do all the talking. Don’t assume any liability or responsibility under any circumstances.