Car Insurance Tips

Posted on 02/02/2007 under: Featured

In the olden days, the choices the average person had when it came to car insurance were pretty slim. There were only a handful of companies, and for most people, if that company didn’t have an office in your town, you would of likely never heard of them. My, how times have changed. There are literally hundreds of car insurance companies available to the average car owner today. Not only do you still have the local mom and pop places, but you can also choose from the mega-nationwide companies that you see advertised on television, not to mention online-only companies that keep their costs down by having less overhead, and we haven’t even broached the topic of the less-than-reputable companies. Regardless of who you choose to go with, here are some helpful tips to keep in mind when you’re looking for the best deals in car insurance.

The single most important thing about car insurance is the fact that prices can vary a lot from company to company. A personal example of this was when I bought a new car and my current insurance company was going to raise my rates by more than 500 percent, so I shopped around and found a competitor who was going to allow me to buy significantly better coverage for less than what I was paying with my old company on my old car. I saved thousands of dollars by doing what amounted to ten minutes worth of work. Some insurance companies specialize in one kind of insurance while others work in other areas. If you do nothing else, shop around for different kinds of insurance.

A second good tip is to shop around every time you switch cars. Just like in the above example, you can be with company A and get great rates on your current car but then upgrade to a sports car or a convertible and get hosed by the same company. Thanks to the Internet and the fact that so many insurance sites now have a simple quote system, you can get a good handle on which companies will offer which rates before you even buy your car.

This next tip needs to be thought through completely before you act on it. If you allow the insurance company to raise your premiums, you can actually get away with paying significantly less per month. Of course, you’re sacrificing service for a lower bill every month, but if you’re desperate to save money on your car insurance, most companies will go for this option.

If you drive an old clunker that you can see yourself parting with in the near future, you can reduce the amount of insurance you have to the bare minimum to save money. You don’t have to worry about collision, for instance, since you aren’t that concerned about the future of your car and you can save a pretty penny, to boot.

Knowing your way around the car insurance game can be tough, especially if you’re new. But by realizing that not everyone offers the same rates and deals, you can save thousands of dollars per year.