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Auto Insurance Rate: How to Finally Get the Best Price Available

Updated: April 10, 2018

Getting the best auto insurance rate does not involve any special steps or tricks.

The only way to get a great auto insurance rate is by shopping around, comparing quotes side by side and knowing how much coverage you want.

If you are completely aware of all the different facets that make up an auto insurance policy, you will have an easier time finding reasonable car insurance rates.

This is because you will only get policies that fit your circumstances.

It is simply not possible to save money on car insurance if you are unaware of what makes up an auto insurance policy.

Knowing Your Auto Insurance Rate

When you are shopping for cheaper car insurance, you must do so with complete knowledge about what makes up the auto insurance rate.

In terms of the auto insurance rate, you must understand the different parts that make up a policy.

People think that they can let agents tell them about these things, but an insurance agent does not have your best interests at heart. They are simply trying to do their job, which is to sell you a policy and get a commission.

In terms of the auto insurance rate, you must understand the different parts that make up a policy. This will prevent you from accidentally getting a policy that does not match up to your expectations.

For example, people often think liability coverage is enough to protect them and their vehicle if they get into an accident. In reality, liability insurance only covers the other party in an accident you cause.

It is necessary to get collision coverage if you want your car protected in an accident you cause, while you may need some type of medical coverage add-on, or health insurance policy, to cover your medical expenses resulting from that crash.

Understanding Price vs. Coverage for the Auto Insurance Rate

A lot of people think that reasonable car insurance rates are defined solely by the price. While seeing a low number on the screen when you ask for a car insurance quote is encouraging, it is not the be all and end all of auto insurance.

For those individuals and families who have the finances to get a better policy, it is important to find the right balance between price and coverage.

If you are getting a very cheap price, but very little coverage, you might end up losing money in the long-run. How does this happen? Because you end up paying a lot of money “out of pocket” when you cause an accident.

For those individuals and families who have the finances to get a better policy, it is important to find the right balance between price and coverage. More expensive premiums are necessary if you want a lot more protection.

Another trade-off to understand is premiums vs. deductibles.

Deductibles are what you pay out of pocket when you get into an accident, while premiums are the money you owe insurance companies on a yearly or monthly basis. Policies with lower premiums usually have higher deductibles.

How to Play Less for Auto Insurance

One thing that a lot of people ignore is that insurance companies offer plenty of discounts and add-ons in their policies.

Some couples will get a joint policy, which can provide even more savings, because you are insuring more than one vehicle in one policy.

For example, insurance companies offer students discounts if they maintain high grades while they are in high school or at college. This is a huge advantage for students, because young people are usually in desperate need to save as much money as possible.

Another discount commonly offered is the marriage discount. Companies believe that married people cause less accidents, which means you can get a significant discount on your policy if you tell the insurance company you got married.

Some couples will get a joint policy, which can provide even more savings, because you are insuring more than one vehicle in one policy.

If you belong to a prestigious group, organization or union, you are probably entitled to discounts. There are some surprising organizations that make these discount lists. For example, insurance companies offer discounts to members of Mensa, athletic organizations, teaching unions and much more.

Shopping Around for the Best Auto Insurance Rate

It is not possible to get the best auto insurance rate unless you are shopping around on a regular basis. This does not only mean shopping around when you do not have a policy.

If you have never bought an insurance policy, you must take the time to shop around and look at what all the reputable companies in your area are offering.

It is of paramount importance that individuals look for better policies even if they are satisfied with their current policy. While you may be happy paying $700 a year for good coverage, you are missing out on saving $50 to $100 a year through discounts if you do not shop around on an annual basis.

It is a bit of an annoyance to look for a new policy every year or two, but it is worthwhile when you consider the financial savings. Shopping around also keeps your current provider on their toes, which leads to them offering you more discounts too.

If you have never bought an insurance policy, you must take the time to shop around and look at what all the reputable companies in your area are offering.

But you must never consider quotes from companies that have a bad reputation. Even though those policies can save you money in the short-term, they will cost you more because of how poorly those companies handle claims.

Compare Insurance Quotes Side by Side

The best way to get cheaper car insurance is to compare insurance quotes side by side. How does this help? Because it allows you to get a real look at what each policy is offering.

It may seem like a lot of work to compare insurance quotes side by side, but it will save you a significant amount of money and frustration in the long-term.

If you look at quotes in isolation, you may only remember the price when you are assessing the next option. But if you make a chart or sheet of all the offers, along with the level of coverage from each offer, you can objectively decide on the policy that best fills your requirements.

For example, by comparing insurance quotes side by side you can see that one policy is offering 200 percent more coverage for a 50 percent price hike when compared to another quote.

In this hypothetical situation, the policy with more coverage is the best financial option, because it will save you more money if you ever cause an accident.

It may seem like a lot of work to compare insurance quotes side by side, but it will save you a significant amount of money and frustration in the long-term.