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How to Get the Best Rates When Shopping for Auto Insurance

by Usha

Aside from New Hampshire and Virginia, every state requires drivers to have car insurance. Insurance is more expensive in some places than others, but there are a few things you can do to save money on auto insurance. Here are five ways to ensure that you get the best rates the next time you’re shopping for car insurance.

1. Pick the Right Types of Insurance Coverage

The best way to get a reasonable rate for car insurance is not being over-insured. Each state has minimum car insurance requirements you need to carry to be legally covered. The insurance minimums are usually limited to liability coverage, but many car owners pay for add-ons.

In some cases, like if you own a new car, extras like collision coverage can make sense. But if you drive an older vehicle, that probably isn’t necessary. After all, repairing an old car after a crash can cost more than the car’s book value.

2. Make Yourself a Less Risky Customer

Another important part of securing the best auto insurance rates is having a record of safe driving. For example, having a history of accidents and tickets will increase the cost of insurance. Serious infringements, like reckless driving or a DUI, can significantly increase the price of your coverage.

3. Compare Auto Insurance Rates Online

When it comes to insuring your vehicles, you’ll have plenty of options, but you might be surprised by which companies have the lowest prices.

Use an online auto insurance comparison tool to compare rates between companies. Sometimes, providers that advertise to lower-income consumers actually charge significantly higher rates. And you might be surprised to find lower rates with local or regional providers than the major national car insurance companies.

4. Consider Bundling Car Insurance With Other Policies

If you have other types of insurance, you might be able to get a discount on your auto insurance by bundling your policies. Different insurance providers have different discounts for bundling different types of coverage, but most offer significant savings for using them for home, life, and auto insurance policies.

5. Look for Special “Safe Driver” Savings Programs

Some insurance companies let customers save money by demonstrating their good driving habits. This means your rate isn’t solely based on general risk categories, but your personal driving record.

This is also called “usage-based insurance,” as it factors in your driving habits, including how often you drive. Some companies even have a mobile app that lets you track your driving to reduce your insurance rate.

In short, if you have a good driving record, shop around, and bundle your coverages, you can save a significant amount of money on your auto insurance policy.

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