Advice & Tips

6 Tips To Get a Great Auto Insurance Deal

Insurance usually constitutes a considerable part of car maintenance cost. So, it is necessary for you to choose your insurance policy wisely to reduce the cost. The tips below will help you lower your auto-insurance cost.

Consider cost of insurance before buying your car

A lot of people usually buy their preferred car before thinking of insurance. While this is not a bad idea, it can help you lower your auto insurance cost if you check the cost of insurance before buying your car. This is because models and brands of car usually play important roles in the cost of insurance policy.

Some models have a record of safety, durability, and availability of spare parts. The cost of insuring such models will be relatively lower.

Get multiple quotes

Insurance Companies

Since there are numerous insurance companies competing with one another, it is better for you to take advantage of the competition by getting quotes from multiple insurance companies. You can easily compare quotes on sites like, NetQuote, and Answer Financial. However, you should not base your judgment on quotes alone.

There are several other factors to consider. Sometimes initial quote can be deceptive as your premiums can be jacked up really fast. While selecting an insurance company, bear in mind that you are looking for a long term insurance because being loyal to an insurance company has its benefits too.

Seek reference

You will never get it wrong when you seek reference from someone who has been using a car for years. When people look for car insurance policies, they focus mainly on low premiums. This may have been a good idea years ago but it isn’t anymore. Insurance companies are now smarter. They attract you with low premiums and milk you in some other areas.

They could hit you with outrageous loss estimates or they could connive with your auto repair shops to make use of the lowest quality parts to reduce their cost. They could even over-charge you for certain parts. The most common gimmick in this regard is to jack up your premium after an accident. So, it is better to seek reference and also check the reviews on your prospective insurance company.

Higher deductible is often better

For most insurance companies, higher deductible goes with lower premium and vice-versa. Now, look at it this way; whether you incur any cost or not, you will pay your premium whereas, if you do not incur any cost, you are not paying any deductible. This implies that you can play a role in determining whether you pay any deductible or not. For instance, if you are not at fault in an accident, you won’t pay any deductible in the repair of your car.

So, it makes sense to go for a higher deductible and lower premium. You can always reduce the amount of deductible you incur by being very careful. This may not be applicable to health insurance especially for people who are managing a terminal ailment. But in auto insurance, higher deductible/low premium is better.

Take advantages of discounts

Virtually all insurance companies offer discounts based on low-risk lifestyle of the policy-holder. Some of the ways to earn discounts are:

  • Installing anti-theft or safety tools in your vehicle
  • Taking a defensive driving course
  • Taking a refresher course as an aged driver
  • Having good grades as a student
  • Taking a driver-training course as a new driver
  • Purchasing multiple policies from the same insurance company
  • Maintaining a good credit score

So, you may ask your prospective insurance provider for ways by which you can earn discounts in your premium.

Report reduced mileage

The more mileage you drive per year, the higher your premium will be. So, if you are going to reduce your driving for any reason, you should report it as it could knock off up to 5 percent of your auto insurance premium.

Conclusively, if you follow the tips above strictly, you should end up with relatively lower insurance premium. None of the tips should be compromised.

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