Many people settle for the car insurance quote or offer that lands on their lap, thinking that it's much better to settle for what's easy than try hard to get frugal results. Well, there's a faster more effective way to get cheap car insurance. This three-step system can guarantee you lower costs and even get you car insurance under 2000. Or even car insurance under 1000!
Step 1: Pick the right policy for you
Generally, there are two types you can choose from: third-party and comprehensive. To be legally allowed to drive, you'll need at least third-party coverage. Back then, this used to cost less than comprehensive insurance but apparently times have changed.
What is third-party coverage? It takes care of any damages that you incur against someone else's vehicle. It also provides protection for all passengers you take in your car. In the event of an accident (and if it's proven to be your fault), you won't be able to cover for damages that your own car incurred. You'll therefore have to take it out of your pocket.
Full comprehensive policies, on the other hand, provide the widest coverage. Its biggest advantage stems from the fact that even if you are at fault in an accident, it can still vouch for the repairs your car will need. If your car is worth more than $1500, then this type of coverage is best for you.
Sometimes, third-party coverage is more expensive than fully comprehensive coverage because certain insurance companies may assess that you do not care about your car at all and therefore place you at a high-risk category. In this case, you're better off going for comprehensive car insurance.
Step 2: Lower your risk level to lower the cost of your coverage
There are many factors that affect your risk level as a driver: age, gender, state in which you live and driving records. Though these are beyond your control, there are certain things that you can change in order to reduce your risk. By significantly lowering your risk, you could get cheap car insurance under 1000. Here are some tips to lower your risk:
- Park your car in a safe place such as a garage, driveway or secured parking lot.
- For high risk drivers insurance, add second driver with a good driving record.
- Pick a simple car with modest engine.
- Install security mechanisms, anti-lock brakes, alarm systems, immobilizers, GPS trackers and airbags.
- Don't make any major changes to your car. Even its color.
- Reduce the number of miles you drive by taking carpools or commuting.
Step 3: Grab cashbacks and learn to haggle
When you're gathering quotes from various providers, be sure to take a look at their cashback offers. These deals can go up to about $120. Visit cashback websites and comparison websites from which you can get around $25 cash back if you compare quotes using their tools and avail of their insurance policies.
Be on the look-out for special, rare deals. For instance, Aviva car insurance offers as much as a 15% discount to new customers. In addition, customers who haven't made claims in at least 4 years are entitled to two months worth of free coverage. Once you total your cashbacks and discounts, you'll find that you've managed to get your auto insurance under 1000.
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