Answer These Questions for Cheaper Car Insurance
Auto insurance is one place where you can often save money. Knowing how to get a discount on your rates is the key.
How much coverage do you need?
Too much coverage is the surest way to increase insurance costs. If you need the cheapest coverage possible, then a liability-only policy that just meets your state's minimum requirements will likely be the cheapest choice. Keep in mind that you will need to add comprehensive coverage if you have a loan on the vehicle, though. Further, liability doesn't cover damages to your vehicle, so you will need to repair your car out of pocket in the event you have an at-fault accident.
Where do you park?
Your zip code can affect your car insurance rates, particularly if you have comprehensive coverage. Zipcodes with more accidents or high amounts of theft equal higher insurance rates. You may be able to lower those rates by parking the car in a protected area, such as your home's garage or rented garage space. Parking on the street is likely to send rates soaring, especially in high-claim areas.
How much do you drive?
It's often possible to be awarded a discount if you are a low mileage driver, simply because the fewer miles you drive the fewer chances for an accident and a claim. Some insurance companies even provide you with tracking devices that plug into your car to track mileage. You may receive per-mile discounts or even pay a low per-mile rate if you are a low mileage driver. Of course, if you drive a lot of miles these programs can end up costing you more.
Are there anti-theft devices?
Anti-theft devices are another way to lower insurance rates if you have comprehensive coverage. A car alarm, for the entire car or just expensive components like stereo systems, is the obvious way to get this discount. Some insurance agencies also give discounts for manual devices, such as steering wheel locks or anti-theft cages around the catalytic converter. It never hurts to ask, as you may even get a rebate or discount on the cost of installing an anti-theft device.
Do you qualify for discounts?
There's a high likelihood you can qualify for at least one auto insurance discount. There are discounts available for good drivers as well as for drivers that take optional driver safety classes. You may qualify for a discount due to a career or association membership, or even for good grades if you are a student. Multi-policy discounts are also common, such as if you purchase a home, renters, or life insurance policy through the same company.
Contact an auto insurance broker to learn more about your cheap car insurance options.