Car Buying Online

Owning a car means there are certain costs associated with it that can’t be overlooked and car insurance is a very important one. Many car owners will just continue paying their existing insurance company thinking that since they’ve been with them a long time that they’re getting the best deal out there but in many cases, you can do substantially better. Each company has their set of risk assessment guidelines and these slight differences between companies can have a big impact on the overall cost and coverage of your insurance policy.

It’s important to stay up to date with what benefits they are providing to you, especially if you’ve been with them a long time and have an excellent driving record. Also make sure you know the details of the policy as far as the claim payouts and costs to you in case of an accident. Here are some helpful tips to lower your car insurance with your existing insurance company and when you’re shopping for a new one:

1. Know whether you are being rewarded for a good driving record, if not; look around because many companies are now offering some type of discount for accident free records.

2. Make sure you are working to optimize the deductibles with your insurance policy, just this alone can make a huge difference in your cost of the policy.

Maintain a lower deductible on comprehensive to ensure if you are a victim of a minor hit and run or minor damage in a parking lot, you don’t have to foot the bill for the repairs.
When calculating how high to go on the collision portion of your insurance policy you should consider the value of the car and if you financed your car, check to see if the lender has set a limit for your deductible. If possible set this as high as you can get away with; keeping your deductible at around $1,000 is a good idea because if someone hits you, you’re going to have them to pay for the repairs anyway. If you know your vehicle is worth less than $3,000 think about dropping the collision portion of the policy because the money you save on regular payments over a couple of years could cover the replacement of the vehicle.

3. If you just need a car to get you around and you’re looking for a practical solution, staying away from sports cars and four-wheel drive vehicles will help out. Both of these vehicles are classified in a higher bracket and are considered much higher risk than other mainstream cars especially if you are younger than 25 years old!

4. Car security is an area that many overlook and don’t realize that most insurance companies will offer some type of discount for a quality anti-theft system. If your vehicle doesn’t have a car alarm, have one installed, you can have a system installed for a measly $100 which can potentially be covered in time by the discount. Not to mention the hassle of trying to replace personal items that are stolen.

5. Don’t claim every little incident that may occur. It’s amazing how much is claimed by people who don’t realize that each claim is a mark against your record. If you run into any problems that have a small repair ticket try to have the problem fixed out of your pocket and not with your insurance company. The guideline is basically, if you have an issue that will cost you less than $300 or $400 pay for it. As mentioned above many insurance companies will reward you for remaining claim free.

6. Don’t try to over value your car this will always get you in the end. The more expensive you say your vehicle is the higher the insurance rate will be for your policy. Just be honest and give the proper amount needed to replace your car and ensure you update the value of your car accordingly every year.

7. Just like any other payment plan most financial and insurance companies will charge a high percentage of interest to carry the balance of what you owe. If you change your payment schedule to yearly or quarterly you can cut down on the amount of interest and save a bunch of cash over the term of your policy.

8. With the meteoric growth and ease of the internet shopping for your insurance online has never been easier and cheaper. Within an hour you can have 5-6 free quotes and give yourself options with price and conditions, many companies are really pushing their internet presence and you can save some serious money online. Not to mention that it is extremely convenient as you can do it when you want and from the comfort of your own home.

As you can see you just don’t have to settle for what you’ve had in the past, there are several options out there that can not only save you money but be more tailored to your situation. The key is to understand your car insurance policy, what else is available and giving yourself options so you can choose what the best case scenario is for you. Don’t let someone else choose what they think is best for you.