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Top 7 Tips to Consider When Choosing the Right Car Insurance Policy

Top 7 Tips to Consider When Choosing the Right Car Insurance Policy

Buying a car is usually an exciting experience for most drivers. Shopping for car insurance, on the other hand, doesn’t elicit the best of feelings. Many drivers usually just settle with the first insurer they find, and never bother to check their policies for many years.

But taking such an approach can leave you severely underinsured, which presents a problem in the event of an accident. At the same time, you might be paying more than is necessary, which means less money in your wallet.

To save money, have peace of mind and get adequate auto insurance coverage, it’s important to choose the right car insurance policy from the get go. In the following article, we arm you with the tips you need to consider when choosing the right auto insurance policy.

Without further ado, let us start.

Compare Insurance Quotes

Each insurance company uses its own in-house criterion to determine car insurance rates. That means different insurance companies offer varying car insurance rates. The only way to ensure you’re getting the best deal is to shop around and compare different companies.

There are many online tools that help you compare car insurance rates easily. You don’t have to leave your house to compare car insurance quotes. You also don’t have to spend a dime, since car insurance providers usually advertise free car insurance quotes online.

You’ll be surprised that you can save a lot of money just by choosing a different car insurer. So, do you due diligence, research and compare different auto insurance quotes before committing.

Pick a Reputable Car Insurer

After comparing different car insurance quotes, don’t simply go for the cheapest offer. That’s a grave mistake that many drivers make. By all means, you want to stay within budget and saving money is always welcome an idea. Just make sure you’re not underinsuring just to save a buck.

Of importance is picking a reputable car insurance company that has a great history of claim settlement. In the event of an accident, you don’t want the additional stress of dealing with an undependable insurer.

Read online reviews and ask for recommendations from friends and family to find a respectable and reliable car insurer.

Pick the Right Car

There are a couple of factors that insurance companies use to determine your rates. One of these factors is the type of car you drive. If you’re buying a new car, it’s important to consider how the type of car you choose affects your insurance rates.

According to an article by, “Vehicles built for performance, with high MSRP (manufacturer’s suggested retail price), and foreign-built models are often costlier to insure. Vehicles that don’t cost as much to repair or aren’t built for faster driving — such as vans and sedans — are correspondingly cheaper to insure.”

Car dealerships usually have booklets outlining how much different types of cars cost to insure, so check and compare before making the final decision.

Set a Good Deductible

To get the most out of your car insurance policy, it’s important to understand how deductibles work. A deductible is the amount that you yourself pay out of pocket when you have a comprehensive or collision loss.

If you can afford to pay a higher deductible, you can save as much as 40% on your premiums year after year. At the same time, consider if you would need to use your insurance coverage to pay for small repairs.

It’s important to sit down with your car insurer a determine a good deductible for your policy.

Check Your Credit Score

Car insurance companies around the country use your credit score to determine the insurance rates you end up paying. Drivers with poor credit score usually pay more than drivers with good credit rating. As you shop, it’s important to check your credit score, and take steps to make it better.

Start by paying off loans. You can do away with credit cards, too, if possible and pay your homeowner insurance premiums on time. Pay your mortgage and other bills on time, as well. If you have car insurance already, don’t pay your premiums late.

Simply put, get a better credit score by practicing sound financial hygiene.

Consider the Insurance Coverage You Need

The right car insurance policy strikes the perfect balance between manageable cost and adequate coverage. You definitely don’t want to be underinsured in event of an accident. You also don’t want to pay for add-ons and coverage you do not need.

Most driver go with the state minimum, but research and talk to your insurance company to set up a policy that offers you adequate coverage at the right price. Be wary of insurers who try to upsell add-ons, and coverage you don’t need.

Usually, you’re adequately covered if you have liability, comprehensive and collision insurance coverage. A reliable insurance company should help you decide exactly what you need to be on the safe side.

Review Your Insurance Cover Regularly

New technology such as anti-theft devices and better safety features can help you lower your car insurance premiums significantly. Changes in your lifestyle can also affect your car insurance policy, lowering or increasing your rates.

As such, it’s important to check in with your insurance company from time to time and see if they can adjust your car insurance policy. If you move to a different location, for instance, you might be eligible for lower rates. If you marry, you might also be eligible for lower rates from your insurance company.

There are several factors that can affect your car insurance policy, so it’s vital to review your coverage regularly to ensure you get the most out of your policy.