How to Get Cheaper Car Insurance
It is important that you take the right steps when choosing car insurance. You need to take into consideration your personal situation, including your driving history and credit score. There are a number of ways you can increase your coverage and make your policy more affordable.
Liability-only coverage
If you are looking for affordable car insurance, liability-only coverage might be the right choice. However, it’s not the only type of coverage available. You may also consider comprehensive or collision coverage.
Liability-only coverage is the minimum auto insurance required by most states. This level of coverage pays for damage caused by another driver’s negligence. Often, it is written as a set of three numbers. These numbers represent the maximum limits of bodily injury and property damage coverage for a single policy.
Full coverage policies usually provide higher limits than the minimums in your state. The higher limits will save you money in the long run.
Comprehensive and collision coverage are included in full coverage insurance. It can pay for damages to your vehicle, other cars, and other property. It also pays for medical costs and other expenses if you or a passenger are injured in an accident.
If you have a new car, you will want to purchase a full coverage policy. However, if your car is older, it may be cheaper to go with liability only coverage.
To get a full quote for your particular situation, you can check online or with multiple insurance companies. RateForce is one of the best sites to compare quotes.
When looking for full coverage, keep in mind that your car’s value can decrease as it ages. Adding collision and comprehensive coverage to an undervalued vehicle can cost you more than you need to pay. For instance, a 10-year-old Honda Civic that is valued at $7000 would require $1,200 in annual premiums for collision and comprehensive.
If you need more coverage, you can add uninsured motorist bodily injury and/or property damage to your policy. Most financing companies require these kinds of coverage.
Pay-how-you-drive (PHYD)
A pay-how-you-drive (PHYD) auto insurance program will save you money compared to a traditional insurance plan. It is also a useful tool for helping you to improve your driving skills. PHYD programs are designed to reward safe drivers, and the higher your score, the less you’ll be shelling out for coverage.
The best way to determine whether a pay-how-you-drive program is for you is to talk to your insurer. You should be able to ask for details on how they calculate your rate, what types of information they collect about your driving habits, and whether they’ll provide you with any discounts or benefits for making safer decisions.
Most insurers will have an online dashboard or a mobile app where you can access your data. Some of the more technologically savvy insurers will even offer telematics data in a real time format, meaning you can see your rates in seconds, not hours.
There are many forms of pay-how-you-drive auto insurance. Some will charge a premium based on the type of car you drive, while others will levy a fee for the amount of miles you travel. As with any form of insurance, some companies will offer generous deals for low mileage drivers.
While a pay-how-you-drive plan is likely to get you a discount, it isn’t the most practical choice. Depending on your particular circumstances, a more practical option may be a usage-based insurance plan.
UBI is a growing trend in places like Asia and Europe. As the technology advances, you’ll soon see a rise in the popularity of this form of car insurance. In fact, EY has estimated that the global market for UBI services will reach 15% by 2020, up from an estimated 1% in 2015. Until then, you’ll need to consider the pay-how-you-drive car insurance option.
Adding a second, low-risk driver
Adding a second driver is a great way to boost your coverage, increase your safety record, and reduce the amount you pay in premiums. It also obviates the need to buy two separate policies.
This is especially true if the second driver is a low risk. They might be a young driver, someone who works at home, or someone who lives in a rural area. Getting a cheap car insurance quote is easy if you know what you’re looking for. The first step is to make sure you have enough coverage.
You can find cheap car insurance by comparing quotes from at least three different insurers. You can even find a better deal if you ask around. To find the best deals, you can check out MoneyGeek’s site for the latest and best car insurance offers.
There are several ways to go about adding a second driver to your policy. One of the most common methods is to use an auto insurance provider’s website to complete the task. Many companies charge a monthly instalment fee, though.
You can add a second driver by contacting your insurer directly. While some may require that you send them a letter of approval, the process is straightforward. As soon as you inform the insurer that you have added a new driver, they will update your policy to ensure that you get the coverage you deserve. Depending on your particular insurance provider, you might be able to take advantage of their multi-driver discount.
Adding a second driver is the smart thing to do, especially if you already have a decent car insurance policy in place. If you don’t, you might find yourself in the unfortunate position of paying a high price for inadequate cover.
Adding a voluntary excess to your compulsory excess
When it comes to deciding on your car insurance, you should definitely consider adding a voluntary excess. You may be surprised to find out how much money you can save by doing so. If you are a cautious driver, you will probably enjoy the peace of mind that a high voluntary excess brings.
Choosing the right voluntary excess is crucial, and it should be no secret that the higher the amount you choose, the less likely it is you’ll need to make a claim. By choosing a larger voluntary excess, you may be able to afford to make a larger claim, which will in turn reduce your monthly premium.
The amount you decide to pay in excess is generally calculated based on your driving record, age and vehicle type. As a result, a higher voluntary excess may be necessary if you are a young driver or if you are involved in a high-risk accident.
However, a lower voluntary excess can be just as useful. For example, if you have a chip on your windscreen, you may be able to avoid a large lump sum of money by having a small voluntary excess.
Another useful feature of your policy is breakdown cover, which is usually cheaper to purchase separately. This is one of the more important car insurance features you should have.
If you can’t afford the extra excess, you may be offered a payment plan. It is also a good idea to shop around for a new or renewed policy. Doing so can mean the difference between saving a bundle on your premiums and paying more for your car insurance.
The best way to find out which voluntary excess is right for you is to look at the small print on your policy. Most insurers will not quote a voluntary excess close to the value of your car.
Adding a credit-based insurance score
A credit-based insurance score is used to help car insurance companies determine premiums. Most insurers in the U.S. use this tool, but states have different laws. Some ban the use of the credit-based insurance score in rating and underwriting, while others require insurance companies to notify their insureds of the use of their score.
Credit-based insurance scores predict how likely a driver is to file a claim. Insurers calculate a credit-based score by evaluating information on your credit report. It can be used to decide whether to offer a payment plan to pay for coverage. If you have a low score, you can expect higher premiums. However, a high score can lower your insurance costs.
Insurance companies evaluate applicants for car insurance based on a variety of factors, including driving record, claims history, and vehicle type. The amount of deductible can also affect the cost of coverage.
Car insurance rates vary from state to state. Five states base rates on drivers’ locations and their driving records, while another four base them on other characteristics.
The Federal Trade Commission studied the relationship between credit and insurance claims. It found that a poor credit history is associated with higher auto insurance rates.
A 2003 study by the University of Texas showed that drivers with the worst credit score had a 2.1-to-1 risk of filing an insurance claim. Compared with good credit, those with bad credit had an average increase in car insurance rates of 76%. That translates to an increase of $1,180 per year in car insurance for a bad credit driver.
While insurers differ on how to assess poor credit, most agree that it increases insurance costs. According to the Federal Trade Commission, drivers with a bad credit history tend to have more accidents and file more claims.
