Understanding Insurance Terminology

Understanding Insurance Terminology

3 Tips For Getting Cheap Car Insurance

by Vilma Maki

Throughout most of the US, car insurance is a must in order to be able to legally drive. In fact, only two states do not have a required minimum amount of coverage. Those states are New Hampshire and Virginia. If you live in a state where auto insurance is necessary to be on the road, you will want to make sure that you have at least the minimum amount of coverage required. The cost of car insurance premiums can vary significantly from state to state. If you are looking to save, there are a few key things to know. Here are three tips for getting cheap car insurance.

Shop Around

One of the best ways to save on your auto insurance policy is by shopping around and comparing policies from multiple companies. This will ensure that you get the best rates possible. Even if you are happy with your current policy, it's important to get quotes from other companies every few years. You could be missing out on less expensive coverage. On average, drivers can see an annual savings of $416.52 simply by shopping around for their insurance policy.

Consider a Higher Deductible

Another way to save is by taking a look at your current policy and determining whether or not it makes sense to increase your deductible. While you will end up paying more if you are in an accident, having a higher deductible will mean a lower monthly payment and overall cheaper car insurance. Simply by increasing your deductible up to $1,000 could save upwards of 40 percent on your annual premiums. However, before you do this, it's important to ensure that you have enough money to cover the deductible if you are in an accident.

Bundle With Your Homeowner's Insurance

If you are looking to save on your car insurance, bundling it with your homeowner's policy or other insurance policies can mean major savings. Most insurance companies do offer discounts to those who bundle their policies. The amount you can save will vary but see savings between 15 and 20 percent on their premiums. Bundling will also help streamline the payment process and make keeping track of your policies easier since they are with the same company. 

If you are looking to save on your car insurance, there are a few things that you can do. Shopping around and getting quotes from multiple companies is one of the best ways to get cheap car insurance. Going with a higher deductible can also mean significant savings on your premiums. Bundling can also mean big savings. If you are looking for cheaper car insurance, bundling can mean savings between 15 and 20 percent.

For more information, contact a company like GMI Get Me Insured.


About Me

Understanding Insurance Terminology

After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.