In most developed countries, auto insurance is a requirement in order to drive. Many countries have strict laws about this, and drivers that do not have insurance can actually be fined and prosecuted for not having the required insurance.
While this is a reality that just about every driver has to deal with, the one thing you do not have to deal with is paying a fortune for your auto insurance. The increase in competition in the insurance industry over the years has opened up the opportunity for drivers everywhere to find cheap auto insurance. In order to find cheap auto insurance, however, there is a process that you must go through. Here is what that process generally entails.
There is a great deal of competition in the insurance industry today. This competition has driven prices down and made it possible for drivers everywhere to pay incredibly affordable rates for their auto insurance.
In order to take advantage of this competition, however, you need to do some comparison shopping to ensure that you are getting the cheap auto insurance you are looking for. This is especially true in situations where your rates have changed due to situations such as adding a new car or driver, combining cars, experiencing an accident, getting married, or receiving a DUI.
In these situations, you will want to go through the process of taking a look at what other companies can offer you. Even if you feel the price your current insurance company is offering is fair, letting it know that you will be comparison shopping could cause it to drop their prices as well.
Bundling Your Policies Together
One of the many financial perks of getting married is the fact that you can now bundle your insurance policies together with your spouse. This is also true for families, as the more insurance policies that you have on a single plan, the lower-priced each individual one will be.
Another option for bundling your policies together in an effort to receive cheap auto insurance is by going through a single company for all your insurance needs. For example, if the company you get home insurance from also offers cheap auto insurance, bundling those two policies together can mean a more affordable overall price.
In many cases, the discount received can be as high as 10% off what your typical insurance cost would be. You can also get a multi-car discount if you have more than one car on a policy. Overall, bundling is always a good way to cut costs when it comes to buying insurance.
One thing many vehicle owners are not aware of is that there are many discounts they could be getting that they do not even know about. Insurance companies are always providing odd discounts as a way of advertising their cheap auto insurance policies.
Most of these companies, however, will not outright tell you that you can receive more discounts for the simple fact that you are currently paying a fee that you seem to be happy with. After all, why would they encourage you to pay less if you have not expressed any issues with the price of your current plan?
To find out about the potential discounts that you can receive, all you have to do is ask. Your agent will generally be more than happy to walk you through the different possibilities for lowering your fees. They will be especially helpful if you let them know that you are thinking about doing some comparison shopping to determine if you can find cheaper auto insurance elsewhere.
How Low a Rate Can You Get?
While there are plenty of things you can do to find cheap auto insurance, you should be aware that there are several factors that go into just how low a rate you can get. Some of the main factors of the potential price of your auto insurance include things like:
- Your car type
- Your driving and ticket history
- Your age
Your car type is obviously the only factor of the three that you can change immediately. It can, however, have a pretty significant impact on the rate that you are able to get.
When it comes to car type and insurance rates, you can expect that vehicles that are cheaper and cost less to repair will also come with lower monthly rates. A 2015 Cadillac Escalade, for example, will come with a much higher rate than a 1995 Buick Le Sabre would.
Another factor when it comes to car type is the safety features that your vehicle has. Many insurance companies will provide discounts if your vehicle has safety features that include things like side airbags, anti-collision technology, and anti-lock brakes.
Maintain a Clean Driving Record Going Forward
Even if you have had a poor driving record in the past, that doesn’t mean you can’t change that as time goes on. This is especially true if your driving record was negatively affected when you were younger, as insurance companies understand that most drivers become much more reliable as they get older.
While you may not be able to do anything in the immediate future to improve your driving record, ensuring that you maintain a clean driving record going forward can help you get significant discounts in the future. In fact, extremely safe drivers put themselves in a position where they can often name their price when it comes to the coverage that they receive.
The Age Factor
Your age is something that you obviously cannot change. You should be aware, however, that it does have an effect on your ability to get cheap auto insurance. Elderly and teenage drivers, for example, will generally have to pay higher rates as they are more susceptible to accidents. Middle-aged people and married couples with strong driving records, on the other hand, have a higher chance of finding cheap auto insurance.