If you drive a car or truck in the United States, statistics indicate that you are probably paying too much for insurance. Drivers who don’t shop for insurance end up paying an average of $ 417 more for their insurance each year; that means Americans as a group pay $ 21 billion more in auto insurance than necessary.
When was the last time you got a quote for auto insurance? If you haven’t shopped or talked to your insurance provider in years, or even asked for a lower rate, you’re probably paying more than you should. Here’s how you can find a cheap auto insurance policy online that meets your needs at a lower price.
Auto Insurance Online
If you drive in any of the states in the United States except New Hampshire, you are required to maintain at least some level of auto insurance coverage to protect yourself in the event of an accident. Having auto insurance is essential because it protects you from financial ruin if you are involved in a collision and have to pay for the necessary repairs or if you are responsible for the injuries of another driver if you are involved in an accident.
Here are the three most common types of insurance plans:
Liability insurance: Liability insurance protects you in the event that you are responsible for a collision. It covers the medical costs and auto repair bills of the other driver (s) involved in the accident. It will not cover any medical or auto repair costs you incur. Liability insurance is considered the minimum coverage necessary to keep you legally on the road in most states; other types of insurance are recommended and can often be combined with your liability insurance or at a lower rate, but are not required by law.
Collision insurance: Collision insurance covers your car in the event of an accident. Collision insurance typically includes damage resulting from collisions with other vehicles as well as collisions involving stationary objects and property such as streetlights or letterboxes.
Back to back insurance : Comprehensive insurance (as the name suggests) provides stronger coverage than liability or collision insurance. Comprehensive insurance coverage provides compensation to repair damage to the vehicle if the car or truck is damaged in any way other than an accident with another driver.
Some of the more common full insurance claims include damage resulting from wildlife, fires, break-ins, vandalism, mother nature, and even riots. Before purchasing a full policy, be sure to read the risks covered. Most policies exclude damage caused by nuclear accidents, acts resulting from war and damage caused intentionally by the insured.
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Medical payment coverage: Medical coverage covers your medical bills if you are involved in an accident. If you don’t have health insurance, you may want to consider adding medical coverage to your insurance policy.
Coverage for uninsured motorists: Uninsured Motorist Coverage protects you in the event that you are involved in an accident with a driver who is on the road illegally without insurance or who does not have sufficient coverage that will not cover all of your medical bills. and auto repair.
Rental Car Coverage: Rental car coverage covers the cost of a rental vehicle in the event of an accident to your car. It pays for a rental car while your car is being repaired.
Roadside assistance: Roadside assistance coverage provides compensation for items such as emergency towing costs, breakdown costs, and battery starts.
How To Get Cheap Auto Insurance Online
Follow these steps to lower your premium.
Step 1: Shop around for quotes
Most people end up overpaying for their auto insurance policies because they don’t bother to search for quotes on a regular basis. Each auto insurance provider uses their own unique formula to determine how much you’ll pay in premiums, which means it’s possible to get the exact same coverage from seven different providers at seven different price points.
You are generally eligible for lower auto insurance rates the safer you are on the road, as most premiums are calculated using your age and driving record as the primary factors.
If you haven’t gotten a car insurance quote for a while, collect at least three quotes from your insurer’s competitors. Most auto insurance companies now allow you to request a quote online or over the phone without the need for an in-person visit. Some even offer online quote estimating tools that will instantly tell you how much you can expect to pay each year.
The best auto insurance providers will tell you how your premium is calculated, and they can even offer advice on what you can do to get a lower rate, such as bundling your home and auto insurance or installing an aftermarket anti-theft device. your self. The more quotes you can find, the more likely you are to find the lowest available rate.
Step 2: Think About How You Can Lower Your Rate
Taking steps to lower your auto insurance rates can help you get a lower quote from insurance companies. Here are some steps you can take to lower your rate:
Increase your credit score: Most drivers aren’t happy with it, but auto insurance companies often use your credit score to determine your rate. Paying your credit card bills on time, keeping a low balance on your cards, and limiting the number of cards you apply can increase your credit score over time, making you a more attractive customer for a lower rate.
Choose a vehicle with a higher safety rating: If you’re shopping for a car right now, consider more than gas mileage and color. Check out crash test data from the Insurance Institute for Highway Safety and consider choosing a vehicle with higher safety ratings to see a lower auto insurance premium.
Request a higher deductible: Your deductible is the amount you are expected to pay before your insurance takes effect after an accident or other incident. Generally, the more you pay your monthly premium, the less you will have to pay for your deductible. Taking a higher deductible can help you get a lower monthly rate.
Want to learn more about how to lower your auto insurance premium? Check out our guide here.
Step 3: Negotiate with your current insurer
Auto insurance companies know that it is much less risky and less expensive to keep an existing driver on their policy than to hire a new one. Call your insurance representative if a competitive auto insurance provider has offered you a lower rate than what you are currently paying.
Most auto insurance providers have a policy in place that allows them to negotiate a lower rate for customers who have purchased their policy without incident for a number of months. Many insurers try to do everything in their power to continue paying their customers, including matching or beating a competitor’s prices.
Step 4: Change your policy
If you are unable to strike a deal with your current insurer, you may want to switch to the more affordable provider. Contact your new insurance provider online and explain to them that you are ready to make the switch. Your new insurance agent will walk you through the details of starting your new coverage.
After purchasing your new policy, call your current insurance company and explain that you want to cancel your coverage. Find out about the fees that will be applied to your account for canceling your policy mid-term, and have a representative send you written confirmation that your coverage has been canceled by email or registered mail.
Don’t cancel your insurance until you’ve chosen another provider – otherwise, you could end up with a dangerous and illegal coverage gap.
Step 5: Drive safely
Obviously, you want to stay alert and aware on the road at all times. However, most auto insurance policies include a disclaimer that allows them to easily remove you from coverage if you are involved in an accident within 30 days of signing up. Drive especially carefully at the start of your policy.
Make the decision
You don’t want to know that you are paying too much for your auto insurance policy. However, cheap auto insurance policies often cost less than competing policies because they limit your coverage. Choosing the wrong policy can put you at risk in an emergency. Before signing a policy, make sure you read and understand exactly what your policy protects you against and what it does not protect you against.
The last thing you want when purchasing your auto insurance policy is to hit an animal on the road, only to find that your new policy does not cover deer accidents when you submit a claim.
You want to know more ? Check out Benzinga’s guides on the best cheap auto insurance companies, the best high risk auto insurance companies, and the best term auto insurance providers.