Useful Car Tips

Finding the Right Car Insurance for Your Budget

September 28, 2018
Along with all the other responsibilities of owning a car, insurance is perhaps one of the trickiest. There really is no hard-and-fast rule for finding the right car insurance, but there are ways you can prepare yourself to find the best rates for your situation, without having to spend hours on the phone or online. Take a look at the following tips we’ve gathered for you on the topic of car insurance. Keep these considerations in mind as you shop, and you’re sure to find the best rate possible, tailored to your specific needs.

The All-Out Beginner’s Guide

If you’re looking for a one-stop shop for all things car insurance, check out this resource from Investopedia. Experts here caution drivers: insurance companies know most people don’t want to spend hours researching which types of coverage they need, so they try to increase their profits by selling you more than you might need. Do yourself a favor and read up before you check any companies out. Investopedia also offers explanations on the different categories of coverage. Do you really understand what sorts of situations you’re protecting yourself from? Do your homework and invest some time in understanding the various aspects of car insurance.

Know State Requirements

Choosing the right insurance coverage begins with knowing what is required in your state. In a perfect world, you’d be able to afford the highest amount of coverage offered to insure optimal protection. At the same time, insurance rates can increase dramatically depending on your circumstances. When you sign up for car insurance, most companies will ask where you live and what sort of driving record you have. It’s crucial to always be honest. Know what your driving record looks like and do your best to keep tickets and accidents from raising your insurance rates.

College Students

Whether or not you’ve moved into the dorms yet, students who have a car and plan on driving it while at college should consider the following when shopping for car insurance:
  • If you’re only driving to campus and back, or anywhere in-town, let your insurance agent know. Driving less means you’re a lower risk to the insurance company, so chances are they might offer you a discount up-front.
  • Keep your grades up. Many companies offer discounts based on GPA. Plus, your parents will be proud of you for such high achievements.
  • Practicing safe driving and even attending a defensive driving class often translates to dollars off your insurance rate. Sure, it might take up one entire Saturday, but the savings will add up.
There are many other ways students can earn discounts on their insurance rates, depending on which insurance carrier you’re contracted with. Speak to your representative today and see where else you could be saving money.

Credit Scores

One of the most important things to realize is that your credit score has a huge effect on your insurance rate as well. Step into the shoes of the insurance company for a minute. If they are insuring a customer whose credit score is low, they’re going to want to hedge their bets and charge that person more up-front. Low credit scores tend to mean an individual pays late or defaults on loans, which is a huge liability to any company with profit in mind. Do yourself a favor and keep your credit score up. Educating yourself about car insurance is the first step in becoming an informed consumer. Do your research and come to the table with knowledge, rather than confusion and doubt.
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