There's no legal way to avoid buying car insurance but there are a number of things people can do to find the inexpensive car insurance they desire. There are several factors that affect how much you pay for auto insurance. Learning the various components that contribute to competitive insurance quotes will give you a clear understanding of how to save money on car insurance to realize true savings.
When it comes to buying insurance, rates vary significantly so you should shop around for the most inexpensive car insurance possible. It is essential that you solicit competitive quotes from different types of providers. Start by contacting a couple of the largest underwriters such as State Farm and Allstate. Then communicate with a couple of independent agents who can provide quotes from multiple companies. Next get in touch with direct marketers, such as Geico and Progressive, who do not operate through agents. It is common for businesses to provide online quotes so fully utilize the Internet to efficiently compare rates among various inexpensive car insurance companies. As mentioned, rates vary widely. We are talking by hundreds of dollars so it's worthwhile to spend some time to comparison shop.
Just because auto insurance is a necessity doesn't mean that you should pay more than you have to. Having said that, the minimum requirement set by your state may not be sufficient. You need to assess your situation and procure appropriate indemnity for your needs. Start with the state required minimum coverage and increase the cover if your current status warrants it. In general, the higher your assets and income, the more insurance you need. This is to protect your assets from lawsuits due to inadequate liability coverage.
An insurance policy can include cover for bodily injury liability, property damage liability, medical payments, uninsured motorist protection, collision and comprehensive liability (ie. theft, vandalism, flood, and other other non-accident causes.) Get cheaper insurance by getting rid of excess coverage such as:
- if you drive an older vehicle, consider dropping collision coverage since claims are limited to "book" value. A general guideline is to decline collision cover when the annual premium is ten percent of what your car is worth;
- if you possess generous health insurance coverage, contemplate deleting medical payments;
- if you can afford to, increase the deductible for collision or comprehensive to reduce your premium.
- maintaining a good credit score - insurers use credit information to determine policy rates;
- qualifying for the low mileage discount - consider car pooling if possible;
- being a safe driver - avoid accidents and traffic violations to receiver "good driver" discounts;
- driving a vehicle that doesn't attract a surcharge - a brand new sports car is more expensive to insure than a late model sedan.
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