If you watch any TV or browse websites on the Internet, you have probably seen ads from some maor auto insurance companies. Some of the newer and more popular marketing efforts tell us that we can go to a large insurer’s website and name our own price!
This sounds too good to be true. It actually is a little misleading. Every state has minimum insurance requirements. You will have to pay for that in order to be a legal driver In addition , if you lease or make payments for a loan, you will probably have to have full coverage. Lenders and lease companies want to make sure they are protected in case your vehicle is damaged in an accident.
So you know that you will have to pay some minimum amount in order to cover your car. You cannot really name any price. There are some real advantages to using these system. The systems make it easier to understand how prices are set. This is a benefit.
You should not assume that an insurer who has a system that lets you set your own price will always offer you the best deal either. There are some changes you could make to your coverage. Most people could lower their premiums by cutting out some of the extras or increasing their accident deductible. However , you can do that with any insurance company. This is not really unique.
You may decide, for example , to skip coverage to pay for a rental car to use while your own car is being repaired. This could save you a few dollars every month. However , if you do have an accident you will need alternate transportation. You may be ok if you can catch the bus. If you have to pay for a rental car for several days, it could cost hundreds of dollars.
When you are setting your own car insurance price, be sure and leave in the things that will serve you well if you do have an accident.
One of the simplest ways to save money on your monthly premiums is to make sure you are getting the best deal for the coverage you need. You should compare quotes from multiple companies. Some insurers are just cheaper for different types of drivers.
You should also be sure you take advantage of any discounts you can qualify for. Lots of vehicle owners pay too much for their coverage because they are not even aware they may qualify for a discounts. Several large insurers offer discounts for low mileage drivers hybrid vehicles, and driver safety classes. You may be paying 10% – 30% more than you have to pay. You current insurer may not offer these discounts, or you have never been notified about them.
These days, it is fairly easy to compare multiple insurers. You can find a lot of good web based quote forms that will match you with a handful of companies after you answer a few simple questions. You could also call up a good insurance agent. They make money when they sell policies and should not charge you for their time.
Just be careful that you are not skipping some important policy benefits because you want to save a few dollars!