It is true that we never know when we will get our car stolen or we meet with an accident. It is possible that the misfortune is, even now, waiting to attack you and make you its victim. It is a hard truth that we all want a good insurance policy to secure our vehicle and we are still confused as to which one we want. When you own a car, it is quite natural that you will be flocked by many insurers, who offer, if not the same, similar kind of products and services to allure you. This makes you so confused that every product appears to be cheap and effective for you. But, don't worry, here is a list to help you ensure that you have made an excellent choice.
1. Don't form a good opinion on a particular company: When you do a research on which company is the best and offers the most number of offers at the least price, never believe in the advertisement. These companies will show attractive commercials to win the trust of the customers. The real truth is that different people will pay different prices as a premium to the same company. Suppose if, Mr. X pays 300 dollars as a monthly premium, it is not necessary that Mr. Y also pays the same. He may pay only $250 or $350 depending upon the physical conditions of Mr. Y. No one company can claim to charge the lowest premium for the same policy.
This charge will further increase if the predictive models indicated that you are likely to go to some other insurers in the future. Price optimization, that is what these insurers call this model, is stopped in, at least, some of the American states.
2. National Vs. Local Insurers: It is quite true that the American insurance industry is dominated by four among all players. They are Geico, Progressive, All State and State farm. Even though, these national players have won the trust of the customers, we can't ignore the presence of local players like Erie insurance company and Auto owners insurance has earned a name of their own in the minds of customers even better than the national players.
3. Ask for discounts, if any: Whenever you have finalized the name of the company you are going to approach for an insurance policy, check whether any discount is available for you. They will offer you a discount if:
a) You are thinking of clubbing your auto insurance with home insurance.
b) If you are taking two different policies for two of your cars.
c) If you have not had any single accident during the last year.
d) If you are ready to make a single payment of your premiums.
4. Pay bills on time: The only one way to improve your credit score is to pay bills on time and reduce your credit limit a little. This will help to improve your credit score that will reduce the premium you are going to pay the insurers.
5. Choose a car, according to the insurance cost: Whenever, you finalize on purchasing a particular type of car, think about the insurance cost the companies charge for a particular model. If you own a Toyota RAV 4 you will have to pay more as premium than if you own a Honda CRV.
6. Don't go for additional covers: Don't think of buying comprehensive or collision covers because if your car is new, it perfectly makes sense. On the contrary, if yours is an old car, it is going to be a waste, because the insurance company pays only the market value of the car if something undesirable happens naturally or because of a third party.
7. Increase the deductibles: If you increase your deductibles, you can lower your premium. The deductible is the money you pay up front to the insurer, before getting any claim from the company.
8. Mileage-based insurance policy: If you are not a person who drives frequently, then take a policy that allows the insurance company to watch your driving, it will reduce the premium.
These are the 8 ways to get the cheapest policies possible.