Car insurance is one of the realities of being an adult, at least if you want to be able to drive where you want, when you want. But most car owners don’t know a great deal about their own car insurance. In fact, there is a great deal of variation in the cost and coverage options available through competing insurers. There are many things that won’t have an impact on your car insurance quote, but others are very significant. Here are a few.
- What Kind of Car Do You Have? The newer and more expensive your car is, the more it will cost to insure. This is the easiest and most significant insurance cost factor to understand. You may already own a car and be unlikely to sell it anytime soon, but if you are in the market for a car and are looking for insurance savings, buy a reliable vehicle that doesn’t cost very much money. This may keep you from getting the car of your dreams, but if you need cheaper insurance that probably wasn’t going to happen anyway. A good idea is to find a car that doesn’t look impressive, but is mechanically sound under the hood.
- Know Your Legal and Personal Liability Limits. Obviously, the less liability coverage you pay for, the more you will save on your premium. This will cause your deductible to be very high in case you ever need to use your insurance, so you’ve got to find the right balance. This balance should consider your personal budget, your liability needs, and of course the limits that are permitted in the place you live. Most people who want to save money more than anything else will take the highest possible deductible, then try to drive as safely as humanly possible for the duration of the policy.
- Improve Your Credit Score. In some places, your credit score has implications for how much you’ll pay for auto insurance. You guessed it, the higher your credit score the lower your car insurance. Having a good credit history will benefit you in many areas of life, so if you’re trying to get cheaper auto insurance, this is as good a chance as any to pay off some debt or any of the other factors which improve your credit.
- Shop Around. Quick conversations with several insurers will give you an idea about who will give you the best price. In some places, state-run discount programs may be available, and coupons are also sometimes offered by private insurers who want to retain or attract new business. Take your time to find the best deals, and you will be repaid by saving a lot of money for the next year.
Car insurance quotes can vary by hundreds of dollars. Not every factor that determines your quote is up to you, but a number of important actions can be taken by you to save. Take the time to improve your situation and to look around for the best offerings in your area or online. Then enjoy your savings.