You would never think to buy a car without doing a little cost comparison to see how much money you could save. So why would you ever sign up for an auto insurance plan without doing the same? If you’re not sure how to compare car insurance rates, we’ve got a few helpful tips that may just save you some money.
Today’s insurance market is incredibly competitive. If you are smart about shopping around, you could make the competition work to your advantage.
1 Get multiple quotes
Your first step should be to get quotes from as many providers as possible. Once you’ve done that, look at each one line by line to make sure you’re comparing apples to apples. A side-by-side comparison will help you to determine which one will give you the best coverage for your buck.
2 Look at the limit of liability coverage
You insure yourself to limit your liability, so be diligent and look at the coverage amounts. These may not be good enough in the event of a worst-case scenario, which is of course, the moment you need them most. Since not all insurance quotes come with matching limits of coverage, comparing is tricky. That is why our experts have developed a rating for every policy. This is not a substitute for you doing your homework, but it is a handy help to get a good idea of the value for money of the policies you are comparing.
Also read: Car Claims Do’s And Don’ts
3 Look at the deductibles
What may differ between policies is the deductible or the amount of money you must pay out of pocket in the event of a claim before the insurance policy kicks in and pays for damages. A policy with a higher deductible will often have lower premium rates, but if you must make a claim, you will have to pay more out of pocket than if your deductible was lower.
4 Don’t forget about uninsured motorists
The Insurance Research Council reports that one in seven drivers on the road is uninsured. Without uninsured motorist coverage, which covers you if you’re involved in an accident with someone without insurance, you could end up without any way to cover the damages you’ve suffered as a result. Uninsured motorist insurance doesn’t come standard with all insurance policies, but it’s worth consideration. Make sure that the policies you’re comparing all have matching limits of uninsured motorist coverage.
5 Find out if you’re eligible for discounts
If you’re a safe driver or a good student, or if your car has certain safety features, you may be able to get an auto insurance discount. Make sure to find out about any discounts you may be able to receive, and take the discounts into account when comparing auto insurance rates.
By comparing insurance quotes line by line, you’ll see that not all policies are the same. It’s easy to arrive at the assumption that the cheapest policy is the best policy, but that’s not always the case. Sometimes the lowest cost of the batch is also the one that offers the lowest limits of coverage—which doesn’t necessarily equate to “better.” Do your research to make sure that you get the best value for great coverage.