November 8, 2011

3 Secrets To Finding Cheap Car Insurance

It can be difficult to find a cheap car insurance policy that still provides protective coverage. Auto insurance is an expensive product, and while the industry is extremely competitive, most insurance companies set their rates using similar methods. However, there's still a great deal of variation between different providers, and by knowing a few secrets of the insurance industry, drivers can find great auto insurance coverage at a low price.

One of the best tactics for finding cheap car insurance rates is simply to ask insurance companies for discounts. While other insurance industries are legally restricted from offering discounts, auto insurance providers are allowed to offer dozens of different discounts to their policy holders. Many insurers have complex discount programs that insurance agents use to encourage their customers to sign up for new policies. This is advantageous for the insurance companies, as discount programs are geared towards low-risk drivers. Most drivers are eligible for at least a few auto insurance discounts. Commonly-used discounts include discounts for good students and homeowners. Asking an insurance company for information on discount programs is one of the fastest ways to quickly decrease the total cost of auto insurance coverage.

Another way to keep rates low is to reevaluate auto insurance coverage limits. Some drivers end up overpaying for their insurance policies, as they buy too much coverage or the wrong types of coverage. Drivers should carefully consider whether their driving habits match up with their insurance coverage limits. For instance, drivers who rarely spend much time on the road might scale back on their liability and collision coverage. Drivers who primarily drive alone and who have good health insurance policies may not need personal injury protection. Going over every line in an auto insurance contract is a good way to weed out unnecessary coverage, which can mean a much lower monthly insurance premium.

The best secret for finding and keeping a cheap car insurance policy is to know exactly what a policy should cost. Many drivers overpay for their car insurance simply because they aren't aware of their options. While the algorithms that insurance companies use to set premiums can be complex, they're not unpredictable, and drivers can often control their coverage and premiums by looking online for car insurance quotes from major insurance providers. Looking for insurance quotes online every four to six months will give drivers a better idea of how their insurance rates stack up against the rest of the industry, which makes it easier to know when to switch to a new provider. By watching insurance rates throughout the year and after any major policy changes, drivers can find better auto insurance coverage with affordable premiums.