Why You Want Your Car Insurance Premium to be Average
Car insurance is costly. It’s a sad, but necessary reality we must live with. According to Riskology, the AAA released statistics showing car owners spend an average of $9,122 a year to drive. Just to drive – that doesn’t count the cost of a lease if you’re leasing a car, or other forms of transport. So yeah, it seems like if you’re not doing all the maintenance yourself, owning a car can become a huge financial liability.
But of course, it doesn’t have to be. If you look long enough, you’ll find car insurance providers who feel just fine about getting you your coverage under a hundred dollars a month – but at such a low cost, you have to wonder: how much are they going to cover?
Cheap Insurance = Bad Coverage
It’s fine to slash the cost of your coverage and get as many discounts as you can find yourself eligible for, but no auto insurance company is going to cover much if their biggest selling point is that they’re the cheapest auto insurance you can find. Don’t just look for cheap, look for quality. One way to avoid cheap car insurers is by comparison shopping. Compare coverage and insurance policies with pricing between different car insurers, and opt for a shortlist of companies with high amounts of coverage.
Then, go on a review hunt online and see if you can dig up any dirt on the insurance company. Any company online is bound to have a few complaints if it’s a successful one – especially in the insurance industry – but if your car insurance provider has barely anyone saying anything nice (or at all), then something’s really wrong, too. Of course, there’s nothing wrong with a good deal – and not all things that glitter are gold. But if you do find a credible car insurer with amazingly low rates, it’s best to be extra diligent and find out as much as possible before purchasing a policy.
You Don’t Want to Be Ripped Off, Either
Not going for cheap service doesn’t mean gutting your wallet. There are a couple of rules to car insurance that help you navigate around the insurers that are out to gouge you. The first rule is to think like an insurer. When you start down that road, you’ll have an easier time of making the right financial decisions for yourself and your safety.
First things first: you don’t need total coverage. Some things are simply unnecessary, and are just added costs. The most important part of car insurance is the liability coverage and the personal injury protection policy. Comprehensive coverage is an opaque term – some companies offer a truly comprehensive, but basic package, whereas others might stick excessive coverage into their offers just to push your premiums up. Don’t let them. Find another insurer.
Go for Average, Cut Corners Responsibly
So, the solution is to find the average cost of auto insurance from comparison and full-service insurance sites like CoverHound and highlight that ideal level of cost and coverage. If you’re still worried about cost – don’t be! There are always ways to make your premiums go down. As an example, you can:
- Get a cheaper car. Cheaper, older and especially common cars can be easily and cheaply fixed, and best of all, insurance companies will charge you less. It’s never frugal to buy a new car – buy a used one instead, and enjoy the benefits of a smaller overall cost to begin with.
- Properly label your job. As GoCompare notes, the way you formulate your job position changes your final overhead. In the UK, as an example, when chefs call themselves “kitchen staff” instead, they pay up to £98 less – that’s roughly $140. A very sizeable discount, even over the course of a year.
- Consider your discounts. You’re eligible for quite a few discounts if you’re being diligent enough. Depending on your insurer, you can get a discount for registering another experienced driver, a discount for sending your bills in as early as possible, a discount for having no claims for a long period of time, a discount for utilizing a lower mileage than the average client, and so on. Anything that reduces your risks of an accident generally should also bring down the cost of your premiums.
In the end, you really don’t need to opt for the cheapest option to get the best deal. You can still enjoy true comprehensive coverage and state-relevant liability coverage without having to pay an arm and a leg for it.
Don’t just look for cheap, look for quality, for example an auto insurance provider like FreewayInsurance.com that offers both.
