Cheap Car Insurance Advice
Although you can easily buy cheap auto insurance, it is not a simple matter of signing up for the lowest rate. You need to know what to ask the insurance company, and common misconceptions -- and pitfalls -- to avoid.
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Warnings
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When looking for cheap car insurance, make sure the insurance company quote you receive is not just a teaser rate that will go up soon, according to Budget Car Insurance Quote. Also watch out for hidden fees. For example, if you don't pay for your annual insurance at one time, and decide you want to spread out payments, most companies charge an added fee with each payment.
Misconceptions
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Many people make the mistake of assuming they automatically have options such as rental car reimbursement, and comprehensive coverage, when this is often not the case, according to Allstate. When buying auto insurance, don't assume anything, and thoroughly examine what is and what isn't included in your policy.
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Shop Around
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When looking for cheap auto insurance, make sure you get quotes from more than one company. One valuable source of pricing information is your state insurance department, which often publishes a comparison of insurance prices, according to the Federal Insurance Information Center.
Purchase from the Same Company
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If an auto insurance provider also provides home insurance, you can often get a discount by bundling coverage, according to Easy Quote Guide.
Investigate Association Rates
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Many associations provide discounts to their members, according to Edmunds. Check the rates for any associations you belong to, and consider joining a new association if the savings justify it.
Other Ways to Get Cheap Insurance
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According to Cheap Car Insurance Quote Tips, one way to save on auto insurance, if you have two cars, is to ask for a multicar discount. Discounts are also often offered based on your occupation, or the fact that you are a military veteran. An anti-theft device often qualifies for an added discount. In addition, considering the small time investment, consider taking a safe driving course, which often qualifies you for as much as a ten percent discount.
If your car is an older car, another way to reduce costs is the raise the deductible amount. Insurance companies reduce the rate with a higher deductible, because they have to pay out less when a claim is filed.
Negotiate. Suggest to the insurance company that you can get better rates elsewhere. It might result in a lower quote.
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References
- BUDGET CAR INSURANCE QUOTES: 3 WARNINGS BEFORE SWITCHING AUTO INSURANCE COMPANIES
- Allstate: Clarifying the Confusion: A Few Common Auto Insurance Misconceptions
- Federal Insurance Information Center Nine Ways to Lower Your Insurance Costs
- Easy Quote Guide: 50 Ways to Save on Auto Insurance
- Edmunds: How to Save Money on Car Insurance
Resources
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