Finding a car insurance
Car insurance is one of those necessities that it's hard to find a good deal on. Even if you've been driving steadily for years, car insurance prices are never as low as you think they're going to be.
That's why we put together this blog post to help you save money on car insurance. We'll tell you all about the factors that go into your monthly payments, how shop around can help save money, and even share some excellent tips from other experienced drivers in the field!
The best way to get started is by identifying your top wants and needs for a policy. You'll want to start with the big, overall factors of your policy:
#1: When you will need to use your insurance – Comprehensive and collision coverage generally won't come into play unless you're in a serious accident. However, comprehensive coverage can pay for things like vandalism and weather damage that aren't related to a car accident. Collision will help pay to repair or replace your vehicle if you wreck it. It's important to make sure that you think about where and when you'll need these sorts of policies before you buy them. If your car is parked all day, there's no point in buying comprehensive insurance.
#2: How much you drive – Most car insurance policies have driving limits. This is the amount of miles that you can drive in a given time before your policy starts to pay out more money for replacement or repair costs (depending on what type of coverage you have).
Think of the number of miles you'll be driving each week, or each month. Then add 25% to it. That's a good guideline for how much insurance will cover for your yearly driving total. If you drive 10,000 miles year round, 25% means about 3,000 miles per month. That number will be different based on season and how often you use your car overall.
#3: What things you can do to save money – There are plenty of car insurance discounts available for people who shop around for car insurance. You can find multi-car, multi-policy, and even company discount rates that can save a nice chunk off your premiums each year. The more you shop around, the more you'll save!
We're going to start with a basic list of discounts that will probably be appropriate for most drivers. Then we'll talk about the rest of the factors in your policy that can help cut costs down.
#1: Multi-car, multi-policy – This is a discount that you can get from most companies. If you already have an auto policy, it might be possible to combine your car insurance with other insurance offers to take advantage of a multi-policy discount. It's important to check with your specific provider because some companies offer the discount on just about anything you buy with them. Some won't cover car insurance at all unless it's in combination with another policy.
#2: Clean driving record – Every time you're pulled over for speeding or spend time in a school zone, you add points to your license. Once those points hit seven in most states, your license will be suspended until you start moving forward again.
That means that the longer you've been driving and the fewer points you have, the cheaper your insurance will be. You'll also want to make sure that you're careful with your driving habits. Some states have aggressive points programs, which can add up to a lot of time in jail if you don't pay attention to how many points you rack up each year. If you realize that there's a possibility that your insurance premium could jump a lot if you get too many tickets, consider renting a car instead of using public transportation or riding with friends for long trips.
#3: Shop around – This is the best way to save money on car insurance. If you have a plan that's too expensive, consider switching companies. It's pretty easy to do at many companies. You'll just need to know where you can find the best coverages at the lowest prices and then ask them for a quote. There are also plenty of websites out there that will give you comparisons between companies.
It's a good idea to use a few different services to compare prices, because quoting services can't always tell you about the potential for discounts on a policy. For example, if you have a clean driving record with one insurance company, they might give you an awesome deal that another company doesn't offer. That means it would be worth your time to call both places even if one of them gives you the best price in the start.
Next we'll talk about some other factors that affect car insurance rates other than where and how often you drive.
#1: The year of your car – This is something you might already know, but older cars are going to cost more to repair or replace than newer cars. A good rule of thumb is that the older a car gets, the more you'll pay for it's insurance. It's a risk assessment from most companies.
#2: Where you park your car – If you park in a garage or in an area with security cameras and locked doors, your car is safer than if it's parked outside constantly. You might even be able to get a rate cut based on where you live! Don't live near anything that has the potential to be dangerous (highways, busy roads, etc.?) if you can avoid it.
#3: Where you live – The weather and crime rate in your area will have a lot to do with how expensive it is for you to get car insurance. Companies typically charge more money for people who live in areas where there's a high risk of theft or weather damage. These things might not be within your control, but they're still something for you to think about when you're pricing out car insurance policies.
#4: Who owns your car – If you're renting or leasing a car instead of buying it outright, most companies won't cover the vehicle.
Conclusion
There's no way to set a single number for how much you should spend on monthly car insurance. The number will vary based on where you live, what kind of driver you are, and how likely you are to suffer a loss.
However, we can give you a few general guidelines that can help lower your premiums:
#1: Shop around for coverage. Get quotes from multiple companies before buying policy. You'll want to do this even if the company is offering the best price in the beginning.
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Finding a car insurance