A study done by a non-profit organization has shown that auto insurance costs are steadily rising and you need to come up with creative ways to save some money. We have compiled six practical tips you can use when shopping for a valuable auto insurance policy.
But before we share the tips remember that your insurance premium will be dependent on several factors ranging from your where you live and driving record to the type and cost of the car you drive. With all these factors taken in mind, it’s a good idea to shop around for a better insurance company.
These six factors will help you identify the best insurance for your needs;
1. Check insurance quotes on various models before buying a car
This’s one of the most crucial factors to consider when are looking an insurance company. Remember that your insurance package should cater for the cost of repairing your car, replacement of your car in case of a car loss to theft or accident as well as other risks you may find relevant to you.
So before settling for a specific car insurance, check the cost of insuring various car models so that you can weigh whether you’ll be able to cater for the specified car insurance premiums.
2. Weigh different insurance
This is obvious, but it’s important to mention that different insurance providers offer different coverage levels for various risks and different prices. Besides, there are dozens of insurance providers out there; shop around to find the right company for you with regard to coverage and cost of the premium.
It’s recommended that you get quotes from at least three providers so as to have a comprehensive comparison. When shopping, the price should not be your only consideration; you need to consider other crucial factors such as claims handling and the reputation of their customer service.
3. Revise coverage on older cars
It reaches a point where the cost of your premium exceeds the market value of your car. This is because, as times goes by, your car value decreases. At that point, it makes sense to reduce your coverage on your car as they are no longer worth much.
For many, when a car market value falls below ten times the insurance premiums you are paying, options such a comprehensive and collision coverage ceases to make sense anymore. This means you should get liability insurance as opposed to collision and comprehensive coverage.
4. Maintain good credit score
Insurance companies in most countries will consider your credit score when establishing the price of your policy. This’s down to the fact that most consumers with low credit score have a tendency of filing more insurance claims than those who maintain a good credit score.
Due to this factor, insurance providers consider your credit score when assigning rates. Therefore, it is crucial that you raise and maintain your credit score before applying for insurance policies.
5. Enquire about discounts
You may find yourself qualified for a discount that you didn’t know existed. Therefore, it is important to ask your insurance agent whether they offer a variety of discounts and how you can redeem them.
Discounts are available for those drivers considered to be lower risk such as older generation, married people or people with a long record of safe driving. Safety equipment such as dash cam installed on your car also reduce your insurance costs
6. Increase your deductible to reduce your premium
Deductible are paid before your insurance period kicks in after filing a claim. You can opt to raise your deductibles; raising your deductible can help you lower your monthly premium, and this will consequently allow you to save money every year.
However, you need to weigh whether you can afford to cover the deductible. An insurance company aims to make is to restore you to the financial position you were before a loss occurred.
However, by raising your deductible, you’ll be going against the norms of insurance. Paying higher deductibles will reduce your costs of premiums.
Bonus Tip #7 For Driving Abroad (Especially in Greece)
Based on www.ftini-asfaleia-autokinitou.eu you need to get supplemental overseas car insurance as being a car passenger, that you will probably buy yourself when you arrive at your destination, in particular, those that may include health-care expenses in the event of injuries.
Getting a taxi can easily turn out costing much more than simply the fare as well as a tip in certain countries. There are lots of locations, such as Greece that don’t require taxi services to hold insurance coverage for the travelers.
What this means is, that when you’re the passenger, in the case of an automobile accident typically the car owner is not really expected to cover your own health bills. It is advisable to get extra insurance coverage being a passenger in order to stay safe.
The Bottom Line
The right insurance company for you is the one that provides appropriate insurance packages that have the right prices, outstanding customer services, a record of settling claims conveniently, and financial capacity to settle claims and meet its financial obligation.
Therefore, apply all the above tips when weighing the best insurance company for your needs.