When you own a car, auto insurance is a necessity because it covers you financially if an accident does occur. When it comes to choosing an auto insurance policy, there is a range of different options.
Each provider will have plans with selected inclusions and fees that vary to reflect this. It is not uncommon to feel overwhelmed, and often car owners settle for the first policy they find. However, taking the time to shop around can be worthwhile. When you know what kind of coverage you need and choose a reputable insurance provider, you can find a competitive rate.
Before you sign up for an auto insurance policy, take the time to consider the following questions.
Are You in the Military?
Some companies such as USAA offer benefits for military personnel and their families. You may be able to access military installation discounts, flexible payment plans and excellent customer service.
Look for an auto insurance company that understands your unique situation to ensure you get the best policy for your needs. For example, if your vehicle is on base, you could be entitled to a 15 percent discount.
Do You Have a Family?
Often there is more than one driver in the family, and you may be eligible for a discount. For those whose parents use a specific provider, consider asking the company whether you can benefit from their loyalty.
If you are unsure how much you could save, look for a company that offers a competitive rate of 10 percent off or more. When comparing providers, make sure the inclusions are the same. For example, does the policy come with collision coverage? Does it protect you in case of fire, theft or severe weather damage?
Are You a Safe Driver?
Safe drivers deserve to be rewarded, as they are less of a risk for insurance companies. Over time you may even gain additional benefits if you have not made a claim.
There are other ways to receive a price reduction when you can prove you are a safe driver. Some insurance providers will give you a discount on your policy when you participate in driver safety training. This can be especially beneficial for those who have just got their license for the first time.
Do You Own a Home?
Another common way people save money on their auto insurance is with a multi-policy discount. If you own a home, it makes sense to use the same provider if you are happy with their service.
Ask about combining your policies, and expect to receive a competitive discount of at least 10 percent.
Is Your Vehicle in Storage?
The way you drive can have an impact on how much money you can save. Those who drive infrequently can choose an annual mileage policy. They will only pay for the distance they travel, rather than a flat monthly fee.
If your vehicle is in long-term storage, you might be able to save up to 60 percent on your insurance costs.
Get Insured AND Save Money
When you do your research, you may be able to save a significant amount of money on your auto insurance. Think about your circumstances and how often you drive your car, as vehicles in storage can have lower premiums.
Other discounts can apply if you are in the military, have a family or own a home. When you understand how you drive and what you need, it can make finding auto insurance at a competitive rate a much easier process.