How to Get the Best Car Insurance Rate

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

Car, minivan, or truck
Computer
Internet access
Financial calculator
Telephone or cellphone
Comprehensive list of car insurance companies

Step 1

Determine your risk for the best car insurance rate

Determine Your Own Individual Risk - Before beginning your search, you will first need to determine you own individual risk. This is so important because, the gauge that all companies use in deciding car insurance rates is your individual risk factor. Your risk specifically is relative to how likely it is that you will get in a car accident. While certain age groups do qualify for lower car insurance rates, there are obviously others that do not. To get the best car insurance that you can afford, you must see what it is that you qualify for, and this will come about by first assessing your own risk factor. Even if your don’t qualify for a lower rate, you will still be able to get the best car insurance rate; although it will be slightly higher. However, if you don’t take the time to first determine your risk factor and just settle for anything, you may end up paying a very high price. Therefore, it is hugely important that you first determine your risk factor.
Step 2

Examine your driving rate for the best car insurance rate

Examine Your Driving Record - You should absolutely take a good look at your driving record before you officially begin your search for car insurance. If there are any discrepancies or errors on your record, you will need to get those cleared up immediately. Also, if you received a court order with the approval that the department of motor vehicles erase certain negative items from your record, you will want to check to make sure that this has been done. To get the best car insurance rate for your vehicle, you must have a clean driving record. So make entirely sure to examine yours.
Step 3

Shop around for the lowest car insurance rates

Shop Around for the Lowest Car Insurance Rates - As was stated earlier, you must shop around to get the best car insurance rate possible. Don’t make the assumption that you are getting the best rate that is quoted without first doing a little homework. This is a mistake that is made by so many consumers. Never accept the first quote that you receive from an insurance agent. An agent’s job is to get you to spend a great deal of money for the high company commissions. If you’re new to the car insurance game, get help and suggestions from close friends and family members. Learn from their experiences and follow their valuable advice. If possible, have them accompany you on visits to car insurance companies, and have them close by during negotiations.
Step 4

Live in a rural area for good car insurance rates

Live in a Rural Area - Do you like a more bucolic lifestyle? If so, you might want to consider relocating to the countryside. Your region is a major factor in your car insurance rate. Car insurance companies understand that drivers living in rural areas are less likely to get into accidents than those who live in the hustle and bustle of big cities. Less cars, less over-crowdedness, less traffic, less drivers, and less rush all translate into fewer accidents, and therefore less risk to car insurance companies. No, the recommendation isn’t that you should hurriedly pack up everything, and make a mad dash out of Dodge City for greener pastures. However, the suggestion of living in a rural area may be something that you may want to take to heart when seeking the best car insurance rate. It certainly couldn’t hurt.
Step 5

Search for car insurance rates on the Internet

Search for Car Insurance on the Internet - You can search for good car insurance quotes quickly and easily with the touch of a finger through the power of the Internet. There are some very good websites that not only provide great car insurance rates, but many even list several car insurance companies on their sites and star rate them on customer benefit factors as well. This can serve as a quick reference for those who are newbies, and are not fully equipped with knowledge of the car insurance industry. However, this is by no means a shortcut to following the basic approach to getting a good car insurance rate. You will still have to assess your risk, check your record, shop around, and carry out other forms of due diligence.
Step 6

Buy your car insurance from a separate insurance company

Buy Your Car Insurance and Other Forms of Insurance from Different Companies - You should honestly get all of your insurance from separate companies. In other words, if you purchase homeowners insurance from ABC Insurance Company, you would be better off purchasing your car insurance from XYZ Insurance Company. It is often rare that you will find the lowest car insurance rate from the same carrier that secures your homeowners insurance or any other form of insurance . Therefore, avoid bundling your policies at all cost.
Step 7

Purchase minimum liability with great caution

Purchase Minimum Liability With Great Caution - If you are considering minimum liability car insurance, you may want to proceed carefully before doing so. State-mandated minimum liability sounds very attractive on the outset, but may not give you adequate coverage if your in a serious accident. This could result in disastrous financial consequences if it is determined that you’re the one who’s at fault. Therefore, if your objective in getting the best car insurance rate is to purchase minimum liability, be aware of the minimum liability of your state’s legal minimum requirement, and make sure that the minimum that is allowable under your state’s legislation meets the standard amount of adequate coverage that you will need.
Step 8

Go green for the best car insurance rate

Go Green and Stay Green - You might want to consider green technology to get the best car insurance rates. These days, auto insurance companies have adopted the “go green” initiative, and are thus offering discounts that will help cut down on your car insurance costs. There are several ways you can go green, and ultimately stay green when it comes to your car insurance. One way through purchasing cars with good fuel economy such as hybrid vehicles. Plus, you could even make your car more secure by adding more features like extra safety airbags and anti-theft devices. Another way is to go electronic. You can make payments over the phone rather than using paper statements to send through regular mail. You can opt to have your statements sent to you via email transmission rather than through your mailbox. You can make more inquiries by email, rather than tying up company service phone lines. You might be able to get more ideas by speaking with an insurance agent.
Step 9

Pay the accident claim yourself for good car insurance rates

Pay the Accident Claim Yourself - If you are in an minor accident and can afford to pay the accident claim, this could help get you a good car insurance rate. You will want to avoid requesting repairs if it could possibly result in a hike in your insurance premium. Plus, you want to have a good track record as both a safe driver, and as a customer with fewer or no accident reports. This will look really attractive to many car insurance companies if the time were to come where you had to switch carriers. Paying the accident claim yourself is a great way to not only get approved for car insurance, but to also get approved for one at the most unbeatable car insurance rate.
Step 10

Avoid adding teenagers to your car insurance

Avoid Adding Your 16-Year Old to Your Policy - Driving for a 16-year old is a right of passage. However, statistics show that most accidents are caused by teen drivers, and are therefore makes them a high risk to car insurance companies. A good rule of thumb is to avoid putting your unlicensed 16-year old driver on your policy for it will jack up your costs. Once they become licensed at the same age, you may be able to keep them off, and only allow them to operate as supervised drivers until they reach their 18th birthday. However, you will need to check first as some policies may require that they be placed on your policy. Once they turn 18, start shopping around for good car insurance rates for them. There are companies that will offer good rates for teens even if they are inexperienced and have little or no driving record. Once they are covered, make certain that you monitor their safe driving habits, and that they follow all of the driving laws.

Comments

xivyisazombiex said

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on 10/6/2009 extensive information. good article.

on 10/6/2009 Lots of good information here. My father-in-law refused to add any of his kids to his insurance. So my husband didn't bother getting his license until he was 20! He rode a bicycle and it didn't hurt him any.