The Lowest Car Insurance
Car insurance is a necessary evil for most Americans. All but two U.S. states require you to insure your car in order to legally drive it. Because gas, maintenance and car payments already make driving fairly expensive, it makes sense to want to find the lowest possible car insurance rates. Getting them means taking a close look at many facets of your insurance experience.
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The Company
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Not all insurance companies are created equal. Some make a practice of providing lower rates, while others charge higher fees for their reputation or personal service. When looking at a budget insurance company, check their reputation with a watchdog group like the Better Business Bureau or AM Best. Some of the cheapest auto insurance companies keep rates low by denying claims or paying slowly whenever possible. It's also worth noting that your current insurance provider will likely offer a multi-line discount if they cover your auto as well as your home and other insurance options.
Car Choice
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Your choice of car makes a big difference in how expensive your auto insurance is. You can reduce your premiums by car choice in two ways. A less expensive car means lower payments, since the replacement and repair cost of that vehicle is one of the major things your insurance covers. Further, cars with higher National Highway Traffic Safety Administration safety ratings qualify for lower rates because of reduced medical bills from crashes. Unfortunately, cars with high safety ratings are often more expensive --- you'll have to balance these two factors to find which suits you best.
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Policy Details
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Each auto policy will contain precise details as to the limits of coverage, deductible amount and any exclusions under which the company would not pay a claim. You can reduce your rates significantly by taking the minimum allowable coverage, the highest offered deductible and as many exclusions as reasonably apply. However, these discounts come at the cost of reduced coverage. You should check your financial realities before accepting a cheap policy that covers virtually nothing.
Personal History
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Your personal history plays a role in your auto insurance costs. Although you can't do much in the short-term, working to clean up your driving and credit records can reduce your auto insurance costs by up to 50 percent. If your records improve, be sure to notify your insurance company and have them update your premium calculations. Some companies also offer discounts for completing safe driver training, especially for teens and other young drivers.
Lifestyle Choices
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Some auto insurance companies will reduce your rates for seemingly small changes that can improve the safety of your vehicle. Parking your car in a garage or covered parking, for example, can reduce your rates for comprehensive coverage. Although moving might be drastic to ensure good rates, you will receive a discount for living in a low-crime area. Accepting a limit to how much you drive each year, or living within a certain distance of your workplace, can similarly reduce your risk and improve your rates.
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References
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