My recent move to a more desirable neighborhood and reduction in my car insurance premium motivated me to write this post about what is the cheapest car insurance. It is vital for people to search for places to save some money in this tough economic market. These tough times have caused leading car insurance companies to compete a lot more for your business and loyalty.
So, what is the cheapest car insurance? Let’s explore some critical tips on how you will find the answer to what is the cheapest car insurance…
Let me start off by saying that the company that may be the cheapest for my wallet may not necessarily be what is the cheapest car insurance for your wallet. Companies have various criteria when determining what premium they will charge a customer. For example, if company ‘X’ values so-called “safe neighborhoods” due to them having lower property crime rates and I live in one, however, you live in a non desirable neighborhood, then all other things being equal, you will pay more than I will for car insurance.
On the contrary, if they value economy vehicles more than anything and you have a nice Prius, well my BMW (yes I love my ultimate driving machine) will yield a higher premium for me than your premium. This is why it is vital to shop around and call for different quotes.
1) Driving record. I realize this may be common sense to most but I still should mention it. If you have a terrible driving record then you need to find out exactly when the driving violations will be off your record. Once they are, you need to call companies and shop around again.
2) Your drive to work. The further you drive, the more premium you will pay. If you commute far for work, consider taking alternative methods of transportation such as the train.
3) The neighborhood in which you reside in. As I previously stated, my recent move saved me on car insurance because my car insurance company determined it was a nicer neighborhood with almost no crime (they finally had their first homicide in 8 years!) and virtually no property crimes.
4) Pay for the premium on an annual basis not monthly or semi-annual. Of course, you may not be able to afford it all up front. If not, you can lower your auto insurance rate by finding out if they waive the finance charges if you enroll in auto pay. Several car insurance companies allow it.
5) Have more than one car? Having both vehicles with the same company will allow you to take advantage of a multiple care discount.
6) Do you own a home? Consider adding your home owner’s insurance policy with the same car insurance company as many offer additional insurance services.
7) I believe in having roadside assistance, however, shopping around for this may benefit you. In fact, some credit card companies offer it for free if you are a member.
8) In your search for what is the cheapest car insurance for you, make certain you ask what type of discount they offer if you happen to be affiliated with their member directory.
9) Install additional safety measures such as an anti-theft device and air bags (some older model vehicles do not have them). Also consider parking the vehicle in a garage or gated parking spot.
10) Clean up your credit and try to have a higher credit score. Unfortunately car insurance companies use your credit score as a factor in your premium.
11) If you are really cash poor, consider raising the deductible to lower the monthly payment.
12) Are you a good student? Many car insurance companies that offer the cheapest car insurance rates offer great good student discounts. Often time they will not mention it unless you ask.
Overall, if you do your due diligence you will definitely be able to determine what is the cheapest car insurance for you. Take your time as this is one of those things you should shop around for.