According to stats, about 95% of all American households own a car. Of these people, 85% of them use these cars to drive to and from work, making them a daily necessity. If you’re part of this group, you probably understand the pressures of paying hefty auto insurance rates, especially if you have more than one car.
Car insurance is a mandatory requirement for all drivers; in fact, driving when your insurance has expired may lead you to get fined or even have your driving privileges revoked. So, how would you ensure you cover all your insurance costs without breaking the bank?
1. Shopping around for affordable rates
Going in, very few drivers know the importance of comparing different premiums and insurance rates, choosing instead to take the insurer’s word for it. Many insurance companies run marketing campaigns aimed at advertising their ‘cheap and affordable’ rates. This may lead you to believe that theirs are the lowest prices in the market.
However, this may not always be the case. It’s advisable to look into different insurance companies and compare their prices against each other. This way, you’ll be sure not to spend more insuring your car than you absolutely have to.
2. Consider local and smaller insurers
It’s a common misconception among a majority of consumers that bigger brands provide better service than their smaller counterparts. This is not always guaranteed- and in the insurance sector specifically, the opposite often tends to be true.
Smaller local and regional insurers often have better customer satisfaction ratings than larger, multi-national companies. Under some circumstances, they may even have lower insurance premiums.
3. Be proactive about paying your bills
Many insurance companies (except in Hawaii, Massachusetts and California) base their rates on the applicants’ credit scores. Recent studies have shown that having bad credit can make you spent hundreds of dollars more each year on your car’s insurance than someone with a great credit score. Paying your bills on time and working towards being debt-free will make it possible for you to spend even less on auto insurance.
4. Factor in insurance rates before buying that new car
A lot of factors come into play when calculating insurance premiums. These factors include your age, driving habits and how you intend to use the car. The type of vehicle you want to insure also matters a lot- its value, overall quality and maintenance costs will also play a huge role in determining your insurance rates.
It is therefore important to consider insurance costs before buying a new car. Experts would recommend going through a list of the cheapest cars to insure– maybe you’ll find something that fits your needs and preferences.
Insuring your car on a tight budget
When looking to insure your vehicle, it’s essential to scour the market for the cheapest rates, comparing different companies and their prices. You should also make sure to pay your insurance and other bills on time to ensure you have a great credit score. Remember, local insurers may have better deals than larger companies, so don’t hesitate to give them a try.