With the new year just around the corner, you’re probably looking for a way to lighten your expenses for January. Saving money by getting the cheapest car insurance possible is a great way to start the year.
If you need your car to be in the best shape possible for all the fun activities you have planned, getting the best insurance coverage is just as important. Here’s a guide to getting the best deals on car insurance this year.
- Collect Your Info
The first step to getting the best auto insurance is collecting quotes. Filling out all those forms can be tiring, so make it a little easier on yourself by collecting the information needed. Here’s a quick list of things you should jot down before you start researching insurance companies:
- ID numbers
- Vehicle information
Don’t forget to gather the information for all the drivers on your policy. You can get as many free quotes as you like so you can find the best rates for your budget. Don’t forget to compare your current rates with other free quotes to make sure you are always getting the best deal.
- Compare your Plan
Once you have your information together, it’s time to compare car insurance plans. Make sure to include your current policy plans in your comparisons. You also want to remember to compare more than price. Here’s a list of a few things you need to compare when you’re looking at plans
- Claims process
Make sure you’re getting a good balance of coverage for the price. You also want to have good customer service and an easy claims process. Don’t sacrifice any of the benefits you need in a car insurance policy because the price looks cheap. You will likely end up paying more or losing time and effort you could have saved.
- Choose your Coverage
Based on your requirements, you may decide you need more or less coverage for each person in your household. Your state will have a lot to do with the minimum requirements for your car insurance. Make sure you start with the state minimum and add any coverage you’d like from there.
If you’re confused about what the minimums mean or what kind of coverage your situation demands, we’ve provided some useful information below. Here are the different types of coverage and what they mean:
- Liability protection typically covers damage you cause to another vehicle in an accident.
- Collision protection usually covers both vehicles in an accident you cause or protects you from damage from another motorist.
- Comprehensive coverage is the standard for non-accident-related damage like vandalism or hail damage.
- Under-Insured Motorist insurance protects you from damage from another motorist who is uninsured or underinsured.
- Medical Plans cover you and/or other motorists in an accident that causes medical injuries.
There are often optional plans that vary based on the company. Some offer additional coverage and others offer less coverage in return for higher deductibles or lower premiums. Some companies now offer user-based insurance, which customizes the insurance premium and deductible based on how you drive. You should always check the terms of your agreement carefully so you know what you’re paying for.
- Common Discounts
Another great way to save money on your car insurance is to take advantage of discounts insurance providers offer. Depending on your insurance company, your age, and other things like military status, you can earn all sorts of discounts on your car insurance.
Here are some common discounts offered by most insurance companies:
- Good credit score
- Safe driving
- New driver
Be sure to ask your insurance agent for any more discounts you may be eligible for. Your local agent may know how to get you the best deals, so don’t forget to check local or regional companies as well as larger national companies. Depending on where you live, this could save you big bucks.
The Bottom Line
Whether you’re new to the car insurance game or you’ve just decided to see what’s out there, there’s no harm in shopping for quotes. Multiple checks, even within the calendar year, keep car insurance companies competitive. No matter how you plan to save in the new year, make sure comparing car insurance quotes is part of your money-saving agenda.