All over the television, radio, and billboards insurance companies are screaming at you that they are the cheapest and to call them for a quote. But certainly it is impossible for every insurance company to be cheap, so how do you filter them?
All over the television,
radio, and billboards insurance companies are screaming at you that they are the cheapest and to call them for a quote. But certainly it is impossible for every insurance company to be cheap, so how do you filter them? It’s easy enough to find insurance companies to talk to, but you need to know some basics before you start searching for a cheap auto insurance quote.
1. Understand the purpose of car insurance.
Some people think they just have to worry about collision and that’s it. There is a lot more to it. You have to decide if your car is even worth the money to insure it. Older model cars that have no loan and have very little retail value will not make sense to spend hundreds of dollars every policy term to insure.
The bigger reason for car insurance is to protect you financially if you are responsible for injuries and damage in an accident. This is where people cheat themselves out of coverage thinking they are saving big bucks. If you get a cheap auto insurance quote with $25,000 worth of Bodily Injury Liability, check the price with $50,000. You might be shocked to learn there is not a big difference in price.
For people who have prior coverage without any gaps of liability insurance and a decent driving record, increasing your BI limits every year will actually make you a safer risk and your quotes will reduce as a result.
2. Understand how you are charged for tickets and accidents.
If you understand how and for how long you are “dinged” for hits on your driver’s history, it will make shopping for a cheap auto insurance quote worth your time if you search at the right time. For minor moving violations, the insurance rate will be affected for three years. For major moving violations, you will be charged for three to five years depending on the insurance company.
If you have an at-fault accident, one-car accident, hit a pedestrian or cyclist, or any other accidents charged against you, it will affect you up to five years. Your biggest surcharge will be in the first three years. However, most insurance companies will not give you an accident free discount until you have been without claims for five years.
In some states, your insurance goes up for ANY claim, even if it isn’t your fault, like a Comprehensive claim. It may not charge as much as an at-fault, but it will still affect rate, and even sometimes eligibility.
Be smart about when you quote. If you have an accident falling off in two months and a ticket falling off in three months, wait for three months to end and get a better rate. Paying attention to these times will net you a cheap auto insurance quote, no doubt.
Now you know the nitty-gritty of what it takes to get a cheap auto insurance quote accurately, take the time to find out your exact driving history, the value of your car, and customize your quotes so you maximize your protection without sacrificing your finances.
