Every year, drivers in the United States spend about $1,300 on auto insurance.
Since auto insurance is a legal requirement across the country, you have no choice but to fork out the money. If you’re like the average American, you’re probably looking at this figure and wondering why it has to be so high. What’s more, your annual auto insurance can be much higher, especially if you live in New York.
The good news is there are steps you can take to reduce your premiums. In this article, we’re telling you what you can do to get lower insurance rates for your car.
Understand How Auto Insurance Works
The first step to getting the best deal on car insurance is to understand how this kind of insurance works.
For starters, there are six common types of car insurance:
- Auto liability coverage
- Uninsured and underinsured motorist coverage
- Comprehensive coverage
- Collision coverage
- Medical payments coverage
- Personal injury protection
These policies provide different levels of protection. For instance, auto liability coverage will cover a third party claim in the event that you cause an accident that injures another road user, but the policy won’t take care of your own injuries or car repairs.
When you understand how these policies work, it’s easier to find the policy that’s best for you.
Be Smart with Your Car Purchase
If you’re yet to buy a car, you’re in a great position to influence your insurance premiums. This is because the type, age, and model of the car you drive has a big impact on auto insurance.
Luxury cars, for instance, have big insurance rates because they’re don’t come cheap. They cost a lot to fix when something goes wrong, not to mention to replace should they be written off.
When buying a car, it helps to do research and establish how insurance companies treat it. Ideally, you want a car that doesn’t cost much to insure.
What if you already have the car and you don’t intend to sell it? The following tips will help.
Shop for the Best Deal
Buying auto insurance is just like buying any other product or service. You’ll find different providers charges varying prices on the same insurance policy.
As such, don’t fail to shop around. Visit multiple insurance companies and get quotes.
If that sounds like too much work, it isn’t. With internet technology, there are platforms that will collect your data and give you several quotes from different companies. Pick the one that best suits your financial situation.
Keep a Clean Driving Record
Your driving record has a major impact on your car insurance rates.
If you’ve got a bad record, expect your premiums to be higher than that of the average driver – and there’s little you can do without it.
Keeping a clean record is easy, really. Just respect traffic rules. Your efforts will pay off when it’s time to buy or renew your auto insurance.
You Can Get Lower Insurance Rates
If your auto insurance premiums are spiraling out of control, you’re no doubt looking for ways to bring them down. Times are tough, you don’t want to spend an arm and a leg insuring your car. With this guide, you now know what you can do to get lower insurance rates.
Keep reading our blog for more tips and insights.