While purchasing auto insurance, we all go through this process where we try to get the best possible quote for an auto policy. While all the auto quotes we get from different auto insurance companies are all in certain range for us. For example, if insurance for $100/month, when you shop around you may get about 20% fluctuation, so your range will be $80-$120. But there are still possible ways to get the best discounts available to get your auto insurance quote as low as possible. Here are some best possible ways to get a cheaper insurance rate. Check it out.
Local Insurance Agencies
Don’t assume only national companies can provide better protection. Some regional and local companies can provide better rate compare to big brands. There are four insurance companies which cover almost half auto insurance in the US, these for companies are Geico, Allstate, State Farm, and Progressive. If you check some small regional player, you can lower your auto insurance. These small companies also can provide rapid, satisfactory customer services in some cases.
No Insurance Company is Cheaper for all
When you are in the market to purchase auto insurance, do not assume any one company can give you a cheaper rate just because your family or friends got it. They have different criteria to go through and so no single company can be a low price leader for all. If one person gets a cheaper rate does not mean others can get the same. For example, I got a cheaper rate for AAA but it does not mean others can get the same kind of rate in the same company.
You should shop around and get quotes from many different companies to compare and get the best deal.
Get all Possible Discounts Available for Cheaper Auto Insurance
Make sure to get all the discounts applied and available to your company. If you can take advantage of the maximum discount option, it can significantly reduce your premium.
Some available discount options are:
- Clean driving record for past at least a year
- Multiple car insurance
- Anti-theft and other safety devices
- Car, home combo policy
- Paperless policy (online account)
- Pay 6 months or a year premium fully
- Membership in a club or group which provides more discount such as AAA
Credit Score
Believe it or not, your credit score is a huge impact on your insurance rate. People with lower credit score tend to receive bigger quote while people with higher score considered as a safe driver comparatively. Be sure to pay your bills on time and have fewer credit inquiries. This will help not only in purchasing insurance but if you need any other loan.
Don’t Buy Coverage You Don’t Need
Insurance companies offer various add ons which many of us may not require. They offer rental assistance, roadside assistance which can be useful but is you really going to use them? If you have AAA roadside assistance, you may not need any other such add ons. Similarly, many people may not need rental car assistance. These small things can add up in the total.
High deductible
High deductible policies are an answer to paying more premium at a time. These policies allow you to pay less upfront but you have to pay more in deductible. You pay less upfront in monthly installments but have to pay more out of pocket in case of an accident.
Usage-based Discount
Many companies offer usage-based discounts nowadays. They offer either a phone app or a device that you need to plug in your car. It analyses your driving habit, when you drive, how you drive, how often do you use the phone while driving, how many times you apply sudden break or do sudden acceleration. Based on the collected data, the company will offer discounts.
These were the top 7 ways you can get the best auto insurance quote. I hope this will help you get the best possible deal. If you are looking for any other insurance type, please check out our post on the basics of insurance.