To find the cheapest car insurance is the goal for most drivers. When it comes to buying it, don't throw money away. Make car insurance policy work for you.
The concept of car insurance coverage is simple - to protect people from devastating expenses. That is to say car insurance is designed to protect your vehicle and your investment. Read also: Car Hire Excess Insurance: How do Rental Excess Policies Work?
Why Do You Need Car Insurance
There are many reasons for purchasing car insurance. Firstly, you could save hundreds of dollars a year. Secondly, auto insurance could help to pay for medical expenses in case of an accident. What's more, it could provide financial protection from lawsuits and pay for damage due to such events in our life as theft or vandalism and even natural disasters.
However, it is important to remember all coverages are not the same. To find the right auto insurance for some people can be exhausting. From another side, it is not that hard to find some great deals if you surf online, for example. Nowadays web opens its door to hundreds of auto coverage providers!
Choosing the Right Insurance Policy
Depending on where you live in the world, the types of auto insurance policies can be different. In the USA, driving a car without car insurance is illegal in almost all states. Here, the amount of coverage driver needs varies from state to state. Wisconsin and New Hampshire do not require drivers to carry liability insurance, while the remaining 48 do. If you move to Virginia and become a resident, then you must pay the state a $500 annual fee per vehicle if you choose not to buy liability insurance.
In the United Kingdom drivers are also required to have car insurance. It is a legal requirement for every car to have at least a ‘third-party’ insurance policy. Without it - it is illegal to drive a car on the public highway or public place.
Meanwhile, In Northern Ireland (which is a part of UK) insurance is more expensive than in other parts of the UK.
As for Canada, the country insurance is provided privately, however several Canadian provinces, among which British Columbia, Manitoba, Quebec and Saskatchewan provide so called public auto insurance system.
The bottom line is that it’s smart to pay little up front to protect yourself from large potential payments in case of accident or natural disaster. Especially considering the fact that in many instances road conditions or the other driver may be at fault for an accident. Read also: UK Consumers Waste £800 Million on Hire Car Excess Insurance.
Choosing the Right Insurance Company
When it comes to shopping for the insurance company, most people are looking for the cheapest rates from a quality insurer. Insurers most commonly look at the next factors:
- Driver's record.
- Age.
- Gender.
- Number & type of vehicles.
- Place of residency.
If you have found the right insurance provider, keep in mind some useful tips, which can help to find some hidden savings:
- Buy a car which is cheaper to insure: car model affects your premium, it is true. For example, sports car insurance isn't that cheap. Insurance company classifies them as risky cars. However, different insurance providers classify cars by different standards. It depends upon the auto insurance company's own rating system and vehicle classification system. Interesting fact to know - it doesn't matter what color is your car or car you are going to buy. Many people think that colored cars, for instance, red and silver, cost more to insure.
- Have good credit - pay less: almost all insurers pull your credit report and it's not a secret. For insurers the better credit history person has, the less likely he is to file a claim. Another aspect insurers consider is whether you have been paying bills on time - the fact is that insurance company believes these clients are more likely to make their premium payments on time. Thus, before buying a new car, check out and clean up your credit activity.
- Ask about discounts: once you have found the best insurance policy for you, find out if you can save money on car-safety discounts. Some insurers do give discounts for air bags, car alarms, antilock brakes, etc. In addition, sometimes discounted car insurance policies are available through large employers, professional and other organizations. Insurers often provide a discount to those, who drive average less than average annual norms.
Shopping wisely for car insurance could not only help protect you from unexpected accidents, but also let you save some money on it. Buy auto insurance from a reputable company and make car insurance policy work for you!