Owning a car is an expensive affair. It is usually associated with several recurring costs. In terms of an ongoing expense, Auto Insurance serves the biggest and probably the most important part of the pie. There are few guidelines which could help you keep this cost in check and save some money over a long period of time.
Keep looking. Don’t settle for one quote
Insurance prices are never fixed. Companies offer different rates in different parts of the country at different times of the year. So one of the best ways to get a great deal is to shop around. Don’t settle for the first auto insurance company you come across. You can easily obtain company information about insurance companies through the internet or by calling their customer care numbers. To get feedback from actual customers you can always to check out auto forums as well.
It is also important to not look at the price alone before deciding. The cheapest auto insurance company may have conditions that you would have overlooked. Therefore, it is best to get recommendations from other users and friends.
Companies that sell auto insurance through their own agents might be a bit more affordable than those selling through third party agents, thanks to the commission. That too might be another important aspect to consider before choosing a good auto insurance company.
Liability over Comprehensive
There are two types of auto insurances. Liability covers damage done to other people and their property. Comprehensive covers damages to your own car only. The best way to go about this is to choose liability because it costs way less than comprehensive insurance. But if you are doing this, you’ll need to be very confident about the reliability of your car. Also in some state, it might be illegal not to have Liability coverage.
The cost of premium also depends on the annual mileage. Get the auto insurance based on the lowest tier of miles you’d be driving. Be cognizant of when your mileage is expiring and take steps to avoid crossing the mileage limit. You can always rent a car for the weekend-long drive or when you anticipate that you would need to drive more miles in that particular week. This way you end up saving the premium.
Assess the value of your car
For very old cars, having collision coverage might not be a good idea because the premium you pay will be more than the claims you can get out the insurance company. In those cases, it is wise to value the car correctly and go for a premium that makes more sense.
Maintain a good credit
Maintaining a good credit score can be more helpful in crisis than you think. Timely payment of bills and premium can help you retain a good credit score, and that could lower your monthly insurance bills.
Opt for higher deductibles
The deductible is the amount you pay upfront in case of an accident before the insurance policy comes into effect. By paying more upfront, the premium will go down considerably. Just make sure the initial amount you pay does not burden you because that would defeat the purpose.
Before purchasing a car, it is best to analyze the cost and insurance premiums beforehand with USAA Car Buying Service. But no matter what, the best way to cut down on auto insurance costs is to practice safe driving habits and a well-maintained car.
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