A Guide to Car Insurance: 4 Options You Probably Didn’t Know Existed
If you own a car, insuring it is just one of those administrative annoyances that you can’t avoid each year.
However, rather than sticking with the same police from the same insurer, it’s much better to research alternative options, especially if you want to save money.
Here are just a few tactics and tips to try if you are a car insurance novice and you want to get more out of your auto cover.
Comparison is your friend
In years gone by, you’d need to do a lot of manual research in order to find an affordable car insurance deal, or rely on a broker to handle this for you, with the fees that come along with it.
Today, sites like CheapInsurance.com allow motorists to get quotes from reputable providers in a matter of minutes. This lets you compare not only the prices of rival packages, but also the features and benefits that each includes.
So if your current insurer has upped your premium on your renewal, or you think that it’s the right time to make a change anyway, you simply have to take advantage of online comparison tools.
Your credit score & other factors can influence your premium
The key to cheaper car insurance, in addition to comparing deals, is knowing what factors hold sway over the prices you are quoted by providers.
The majority of Americans will have their credit score taken into account when car insurance costs are calculated, for example. If you don’t realize this and you have a patchy credit history, then you might wonder why your prices are higher than your peers.
Variables such as your age, where you live, and whether or not you own your car outright can also lead to large differences in the cost of cover.
Some of these factors are obviously out of your control, but those that you can change you should definitely aim to optimize if making savings is a priority.
For example, the simple step of upping the deductible on your policy will make the premium more cost-effective in most cases.
Obviously you will need to pay more if you do need to make a claim, but doing this lowers the risk for insurers, and if you consider yourself to be a safe driver then it could cut renewal quotes significantly.
Named driver policies could be convenient
Another money-saving alternative to a standard car insurance package is a named driver policy. This lets you specify who is eligible to use your vehicle, and effectively exclude anyone else from getting behind the wheel in order to cut costs.
If you are the only person who drives your car, or it is shared by you and one other member of your household, having a named driver policy allows an insurer to be very precise in its risk calculations. With a standard policy, which includes permissive use of your car by any other licensed driver, insurers must accommodate a greater number of variables, which leads to higher premium prices.
Named driver policies are becoming more popular, and they definitely make sense for a large proportion of motorists nationwide. The downside of not being able to lend your vehicle to a third party is a minor inconvenience in many cases.
Short term insurance is a great stopgap solution
If you only need car insurance for a fixed period of a few days or weeks, then a short term policy will represent better value than a standard annual arrangement.
Short term insurance can have all of the same features and inclusions as a full-blown package, but at a reduced price. It’s worth reiterating that you should still compare these auto insurance products to get a good deal.