Nobody I know likes having to buy car insurance, especially knowing they are paying too much.
Many car insurance companies compete for your insurance dollar, and it can be difficult to compare rates to find the lowest rate possible.
Consumers need to do rate comparisons quite often because prices go up and down regularly. Even if you got the best rates on your last policy you can probably find a lower rate today. Don’t believe everything you read about car insurance on the internet, so by reading this article, you’re going to learn some tested techniques to find affordable car insurance.
Learn How to Buy Car Insurance Cheaper
Consumers need to have an understanding of some of the elements that help determine the price you pay for car insurance. Having a good understanding of what influences your rates allows you to make educated decisions that can help you get big savings.
The following are a partial list of the pieces companies use to determine your rates.
- Credit scores impact car insurance rates – Credit score is a big factor in your rate calculation. So if your credit score is lower than you’d like, you could save money insuring your by improving your credit score. Consumers who have good credit tend to be less risk to insure than drivers who have poor credit.
- Protect your assets with liability insurance – Liability coverage will protect you if ever a jury decides you are liable for damages from an accident. It will provide legal defense coverage which can cost thousands of dollars. This coverage is very inexpensive when compared with rates for comp and collision, so drivers should carry high limits.
- Too many car insurance claims drive up costs – If you are a frequent claim filer, you can look forward to higher rates. Auto insurance companies in Louisiana give cheaper rates to drivers who do not rely on their insurance for small claims. Insurance coverage is intended for larger claims.
- Your spouse saves you money – Being married can actually save you money on your car insurance policy. Marriage means you’re more mature and statistics show drivers who are married are more cautious.
- Where you live – Residing in less populated areas can be a good thing when talking about car insurance. Fewer drivers means fewer accidents as well as less vandalism and auto theft. City drivers have much more traffic to deal with and a longer drive to work. More time commuting can result in more accidents.
- Lower rates come with age – Older drivers tend to be more responsible, tend to file fewer claims and are safer drivers. Young drivers tend to be more careless behind the wheel therefore car insurance rates are much higher.
- Bad driving skills means higher rates – Even a single ticket may increase your cost twenty percent or more. Drivers with clean records tend to pay less for car insurance than people who have multiple driving citations. Drivers who get severe violations such as hit and run, DWI or reckless driving convictions may be required to submit a SR-22 or proof of financial responsibility with the DMV in their state in order to drive a vehicle legally.
- Men fork out a little more – The statistics show that women are safer drivers than men. However, this does not mean men are worse drivers. Men and women have accidents at about the same rate, but the men have costlier accidents. Men also statistically have more aggressive citations such as reckless driving. Male drivers age 16 to 19 are most likely to cause an accident and are penalized with high car insurance rates.
Discounts are great for lower rates
Car insurance is not cheap, but there are discounts available to help bring down the price. A few discounts will automatically apply at the time you complete a quote, but lesser-known reductions have to be specifically requested before being credited.
- Save with a New Car – Adding a new car to your policy can save up to 30% because new vehicles have to meet stringent safety requirements.
- Drivers Education – Have your child enroll in driver’s education in school.
- Accident Free – Drivers with accident-free driving histories can save substantially when compared with bad drivers.
- Seat Belts Save more than Lives – Buckling up and requiring all passengers to buckle their seat belts can save 10% or more off the personal injury premium cost.
- Paperless Signup – Certain companies will give a small break for buying a policy and signing up digitally online.
- Homeowners Discount – Owning a house in Alexandria can help you save on car insurance due to the fact that maintaining a home requires personal responsibility.
Consumers should know that most discounts do not apply the the whole policy. Most only reduce the price of certain insurance coverages like physical damage coverage or medical payments. Just because it seems like having all the discounts means you get insurance for free, companies wouldn’t make money that way. But all discounts will cut the amount you have to pay.
More information about car insurance
Much more information about car insurance in Louisiana is available on the website for the Louisiana Department of Insurance. Click here for link. Consumers can report car insurance fraud, get help finding coverage, and read enforcement actions against agents and companies.
Other informative sites include this site for car insurance information in Louisiana and this link where you can make Alexandria car insurance comparisons.
Shop smart and save
Cheaper car insurance can be found from both online companies and also from your neighborhood Alexandria agents, and you need to price shop both to get a complete price analysis. A few companies may not provide online quoting and usually these small, regional companies provide coverage only through local independent agents.
As you prepare to switch companies, you should never skimp on critical coverages to save a buck or two. There are too many instances where an insured cut physical damage coverage and found out when filing a claim that it was a big error on their part. Your strategy should be to purchase plenty of coverage for the lowest price, not the least amount of coverage.