Ways to Get Insurance
Written by Michael Browne
Elsewhere on this site we've already mentioned several ways to find the cheapest auto insurance you can, but there are so many ways to do this, that we felt it was important to list a few more.
These are five of the most basic things you can do to ensure that you get the best coverage at the lowest price available:
- Keep your credit clean: While some states have considered legislation preventing insurance companies from using your credit score to determine whether or not you can purchase coverage, it remains legal in others. Having clean credit and an excellent credit score means that you'll qualify for the lowest insurance premiums available.
- Maintain a good driving record: Your driving record is a significant factor when your insurance company calculates your insurance premium. Depending on where you live, it will be a two-year or three-year history of your driving that the insurer looks at, so don't speed, and avoid accidents whenever possible.
- Keep your car safe: Anti-theft devices, especially those that allow law enforcement to track your car's location, help reduce your premium, but even just parking your car in a locked garage may net you some savings.
- Keep your mileage low: Sure, pay-as-you-drive (PAYD) is the new fad in auto insurance right now, as well it should be, since actual mileage is usually lower than estimated mileage, but even if your existing insurance company doesn't offer a PAYD program, you can reduce those insurance premiums by minimizing how much you drive. If you work from home, have a short commute, or are able to car pool, and can keep your annual mileage under 14,000 (10,000 in some states) you can save a lot of cash.
- Raise your deductible: If you have enough savings to absorb the cost of a few minor repairs, or to pay a higher out-of-pocket amount, you can get cheaper auto insurance premiums by accepting a higher deductible (that's the part YOU pay for repairs, before insurance kicks in - like the co-payment at a doctor's office.)
The bottom line is this: insurance is all about risk. The lower your perceived risk to your insurance company, the cheaper your auto insurance will be.