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7 Simple Tips to Finding the Best Deal on Auto Insurance

Happy woman gets best deal on car insurance

Whether you’ve been insured for years or you’re looking for affordable car insurance for the first time, it pays to shop around. Because auto insurance premiums vary from one company to the next and from one driver to the next, you’ll find the best deal on car insurance by doing some comparison shopping.

Shopping for cheap car insurance isn’t rocket science. But if you don’t know exactly what you’re doing before you start out, you can easily fall prey to offers that look good. This can unfortunately translate later on more coverage than you need or worse…you don’t have enough. The following 7 tips are designed to help you in your search and save you money:

1. Be Decisive About What Car Insurance You Need

Decide before you set out shopping what coverages you actually need. There’s a long list of types of car insurance, plus plenty of optional car insurance coverages. Do you even know what your state’s minimum liability requirements are? That’s a good place to start when finding the amount of car insurance you need.

2. Consider What You Want to Pay in Deductibles

You do have a choice on how much to pay for your car insurance deductible – to a degree. Most car insurance companies will have a minimum you’ll have to have, such as $500. A lower deductible will have you paying higher monthly rates. On the other hand, higher deductibles work in the opposite direction as they’ll lower your premium. Don’t forget that you’ll have to pay more out of pocket if you have a claim.

3. Get Several Price Quotes from a Variety of Insurers

Don’t settle for the first auto insurance quote you get. Competition for your business is hot and heavy. Get at least three quotes. Also, when comparing car insurance quotes, be sure you’re talking about the same coverage with each company. You’ll want to compare apples to apples.

4. Be Truthful and Don’t Lie About Tickets and Other Infractions When Searching for Car Insurance

Answer all questions truthfully. Deliberately lying to an insurer will not only get you an inaccurate quote for your needs, but it could lead to you being denied coverage or having your policy cancelled. The insurance industry really frowns on insurance fraud – you could find yourself in really hot water fast.

Smiling African American woman shakes hands with insurance man after getting the best deal on car insurance

5. Find Out About Car Insurance Discounts

Car insurance discounts are a great way to save money on your car insurance. The more you qualify for – the more you can lower your rates. Keep in mind that discounts also vary by company. Most insurance companies will limit how many discounts you can apply to your premium, so go for the ones that will save you the most money. In the list below you’ll find some of the more common ones and how much, on average, they’ll take off your premium:

  • Driver education for young drivers (8%)
  • Student driver maintaining good grades (16%)
  • Low mileage driving (5%)
  • More than one vehicle on your policy (10%-25%)
  • Good driver – clean driving record and no claims (27%)
  • Homeowners insurance with the same company as auto – bundled (14%)
  • Anti-theft protection (2%)
  • Senior drivers (15% to 35%)
  • Defensive driving course (10%)

6. Consider All Factors When Choosing an Insurance Company

Always consider more than price. Make sure the company has been around for a while and that they have a high star rating in reviews. Make sure it is licensed to do business in your state. As you look at insurance companies, think about the bigger picture. You may need other insurances, such as home or renters insurance. Is the company you are looking at a full-service insurer?

7. Review Your Determining Rate Factors

You’ll find out as you search for car insurance that companies use a variety of individual factors when determining what to charge you for coverage. Although some companies still consider your credit score, this is falling out of favor since it is believed to target lower-income people. Factors that you can change include keeping your driving record clean, choosing a car that is considered safe and cheap to repair and taking steps to be eligible for discounts, such as paying your premium upfront or on auto-pay.

Remember – it’s your time and money – and, how you spend them can make a big difference when shopping for auto insurance. Don’t hesitate to learn more about a potential insurer, including its license status, complaint history, financial stability, and their reputation in working with customers who have claims.

Choose an Independent Insurance Agent

Did you know that an independent insurance agent represents many different companies. If you choose to use an independent agent, that person will work with you to determine your budget and needs and then present you with a variety of offers to choose from. It’s like someone else does all the research and spends all the time surfing the web.

Find Affordable Insurance Quotes Online Today

Now would be a great time to start shopping to make sure you’re getting the best rate on your auto insurance. Your independent Freeway agent is standing by at (800) 777-5620 and you are also welcome to get a fast car insurance quote online. We also have many independent agents located throughout the U.S. – find your office today!

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