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Auto Insurance Buying Guide – Things You Should Know and Consider

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car insuranceIn a recent survey it was found that only 10% of 19,000 potential car insurance buyers who compared premiums of auto insurance came to know that they could save money by changing insurance providers. While this doesn’t mean that purchasing auto insurance is a waste of time, it’s just a way to save on car insurance premiums, which are affected by a range of variables, such as rising prices, uninsured motorists, insurance based on credit score and corner-cutting repairs.

Some of the factors are not in your control; still, you can do a lot to save on your premiums for the car insurance coverage you require.

Why is Shopping Around a Good Idea?

The factors affecting your auto insurance premiums change constantly. It’s important to consider what to do in case of an accident at fault, or even maybe your credit score or financial picture has improved. These changes may bring reward or penalties from different insurers and can lead to remarkable variations in the premium you would pay to different insurance providers. You can convert the price-rise problems into saving opportunities by regularly looking for a better deal. You can get help from shopping around for counterbalancing price-hike caused by cost factors that are beyond your control.

car accident

Price Hike

There is a tremendous hike in the prices of auto insurance premiums since 2014 by almost 12% which is 12 times the inflation rate. If your income has not increased as per today’s economy, auto insurance is going to take away a bigger chunk from your household budget.

Credit Score

If you are hurt by the 2008-09 recession and weakened economic recovery, you are perhaps paying more for insurance than required, courtesy to the system of most providers to use credit scores to set premium amounts. Even if you have a clean driving record, you may have to pay hundreds of more dollars per year for auto insurance if you have even a slightly less than the best credit score. Each insurer calculates these credit scores secretly using methods that generate quite different scores than the FICO score you are familiar with.

Uninsured Motorists

Unemployment, underemployment and high premiums have also given rise to estimated 30 million motorists without insurance. This could shift a part or total of their liability expenses to you.

unisured motorist coverage

How to Take Control of Your Auto Insurance Policy?

Here are tips with which you can take control back of how much you should pay for this unavoidable expense.

Check the Rates Every Couple of Years

Being smart in shopping can help you in getting coverage you require for less cost. By taking a look beyond only a few insurers, you can achieve better savings. You should also look at the market every time upon having a change in your personal status, such as you get married or need to add one more driver to your policy. Inquire with your existing insurer how the change will affect your policy and then look if you can get a better deal. Find a copy of your existing policy and also documents of any at-fault accident claims and moving infringements before getting quotes. This information will be asked for every time you invite a premium quote.

repairing a car after accident

Choose a Top Insurer

Saving money should not be looked at only as the lowest premium. A low-cost policy may cost you more if you meet with an accident, by jacking up your premiums unfairly, hassling the servicing shop to cut corners or lowballing loss estimates.

You should also weigh reputation, service and access to an agent, beyond price. This will reduce your headache while getting an excellent service from your insurer.

taking the car to repair shop

Set Proper Deductible

A higher deductible lessens your premium since you have to pay more from your pocket in case of a claim. Increasing your deductible from zero to a thousand dollars can reduce your premium by up to 47% or over $1,000 as per the state you live in. If your driving record is good and you haven’t met with an at-fault accident ever or in years, seeking a higher deductible may be a good deal. You should just ensure if it’s affordable to you if you are short of luck.

collision coverage

Evaluate Your Entire Coverage

  • Injuries and property damage caused by you in an accident are paid by liability coverage. Don’t reduce your liability limits to the state minimums to get caught short. Purchasing more coverage may seem like a strange way to save, but in case of a pricey claim, there may be a risk to your personal assets. Purchase the standard 100/300/100 coverage that will pay for physical injuries up to $100,000 for each person and $300,000 for each accident, and for damage to property up to $100,000. If your net worth is high, increase physical injury even further.
  • According to the estimates of the Insurance Research Council, one among every eight drivers may not have insurance. In such a situation, you should protect yourself by purchasing uninsured/underinsured motorist coverage with the same limits as that of your liability coverage.
  • When the yearly cost of coverage equals or crosses 10% of the book value of your car, consider cancelling your comprehensive and/or collision coverage. Or else, you may have to face more payment in the long run than you would get back for repair or replacement of your stolen, damaged or totaled vehicle.
  • If you own another vehicle that can be used while your car has gone for repair, give up rental-reimbursement coverage. If you are a member of an auto club, dump roadside assistance as that’s the better bet; it can also come as a part of your vehicle’s warranty.
  • Review your coverage for personal injury protection and medical payments. Forget it if there is good health coverage; if there isn’t or if your regular passengers are not well insured, keep it.
  • You can also control the cost by maintaining a good credit score, reporting if you have reduced mileage due to a changed job for example, choosing a car of a model that has less premium and managing the risk of a teenage driver.

damage to property

Discuss all these issues and ask how you can get high quality auto insurance at low cost to good insurance agents like that in Altima Auto Insurance. This is an extremely trustworthy insurance agency that works for their clients and not for an insurance company. Visit their site to know more.

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