We all like to save money and a great way to do that is to compare car insurance rates. When is the last time you even bothered to shop around for car insurance anyway? It seems rather common that we get into the habit of just paying our insurance bills when they arrive and that’s the end of it. But the fact of the matter is that for a great many people it is possible to save a substantial amount of money by finding a better deal.
With that said it is absolutely vital that you do not sacrifice coverage for lower premiums. Automobile insurance premiums are based on several factors, some being more important than others but all having an effect on the overall rates that are charged. Let us take a look at the various things that influence automobile insurance rates.
The deductible you pay has the largest influence on how much insurance is going to cost you. A deductible is simply the amount of money you will pay out of pocket before your insurance coverage kicks in and pays for the rest. If you are looking to save money with a high deductible then you may end up paying quite a bit of money if you have to make a claim. Conversely, if you have a low deductible your insurance premiums will be high.
We see how choosing the amount of deductible we want to pay can be a bit of a balancing act, but let’s look at some of the other things that are within your control and will help you save money on car insurance. If your car has anti-theft devices installed such as a car alarm you will receive a discount. Also, you get money off if your car is parked in a garage as opposed to on the street.
A good driving record that is both accident and ticket free also very much plays in your favor. And believe it or not your credit rating will also affect how much you pay for car insurance. The idea being that the insurance companies deem those people with a stronger credit rating to be more responsible than those with a poor credit history.
When you you will also find that there are some things that determine how much you’ll pay that are out of your control. These factors include your age, where you live (unless you want to move) and the make, model and year of your car. Sports cars are more expensive to insure because the drivers are usually considered to be more aggressive.
If you do in fact drive an older car and would like to save as much money as you possibly can on insurance then be sure to check your state’s requirements. All 50 states now make having automobile insurance mandatory in one form or another. In some states you can just get by with medical liability while other states require minimum coverage that is more comprehensive.
To compare car insurance rates simply go online to one of the dozens of websites available on the web and enter in the information required about yourself and your car. That information is then passed along to insurance companies who will compete for your business. When you get the information back you can simply go through it to find who offers the best coverage at the most favorable rates.