- Your auto insurance policy will compensate for damages made to someone else's property and any bodily injuries, provided the insured driver caused them. Certain insurance policies cover fixing the insured driver's vehicle, as well. This type of coverage includes damages caused by the driver, an uninsured or underinsured driver or other factors such as a fallen tree or fire. Before looking for savings, consider what coverage is necessary for you and your family.
- The most complete type of car insurance is Comprehensive insurance. It is also the most expensive. If you are financing your car, this type is necessary. You might be able to lower your rate by increasing your deductible. Fire and Theft is a step down from Comprehensive. You can lower your premium on this type by purchasing a lower-profile model vehicle, which is less likely to be stolen. Third-Party, which only covers damage inflicted on someone else by the insured, is the most inexpensive.
- Make every effort to remain free from speeding tickets or other moving violations. By keeping your driving record clean, you will be entitled to a lower premium. If you previously had points on your license, but it has been a few years, contact your current insurance agent to see if you qualify for a lower payment. If you have cleaned up your credit rating in recent years, this can also lower your premium. Before you shop around, see what your existing provider can offer you.
- If you are in the market for a new car, make smart choices to lower your insurance premium. The less expensive the car, the better deal you will get on insurance. Domestic vehicles, cars with four or six cylinders, and four-door cars or minivans are your best bets for lower budget insurance. If you are adding an additional car to your home, ask about a multi-vehicle discount. Installing an anti-theft device and garaging your car will help, too.
- A lower insurance rate is attractive, and there are many legitimate ways to save. However, there are caveats to consider when shopping budget insurance companies. It is highly likely that these policies will not provide extras, such as rental car provisions, roadside assistance or towing. There might be hidden fees for services such as phone support or paperwork costs. The great low rate you are quoted might have a short lifespan, with a significant rate increase once your initial 6 months has passed. Ask lots of questions and always read the fine print.