How To Get The Best Car Insurance Deal Part 1
written by Credit-HQ ExpertThe first thing you take care of right after deciding on which car to buy and which car financing scheme to go with is car insurance. It’s a non-debatable expense, and is required in most states – in fact, many auto dealerships bundle the auto insurance package with the purchase price for the customer’s convenience, but you’re certainly not obligated in any way to accept what’s offered by your agent.
It’s important to do your own car insurance shopping because the sales agent is likely to receive a commission from the car insurance company he’s recommending to you, and this added expense would naturally be passed on to you.
Before you get decide on a particular package, though, read about these valuable tips on how to get the best car insurance deal. Some you may already know about, but there are likewise some valuable bits of advice you may not know could save you hundreds of dollars.
Location, location, location
First off, insurance packages offering the same coverage may vary in cost from one state to another. For instance, your car insurance may be assessed with a more than $3,000 premium in New York while the same package could go for about $1,500 in a less urbanized state.
The reason for this is that premium rates are largely affected by the amount and frequency of claims. In rural America, car owners are less likely to submit claims for a stolen car than one living in a crowded city with a higher crime rate. A larger percentage of road accidents also happen in big cities than in smaller towns.
Age does matter
Age can either be a disadvantage or a disadvantage when computing for car insurance premiums. The higher the risk a client has, the higher the premiums he or she has to pay.
Generally, drivers 25 and below and those aged 60 or older pay higher premiums than drivers outside these age ranges. If you list a teenager down, your premiums can even double! But of course, you should always make a full disclosure of details such as these because failure to do so and eventually getting caught may result in a company turning down your claims or refusing to renew your coverage.
Not all companies have a bias against young drivers, though – several are now offering lower premium rates for young but safe drivers. It has been determined that this breed of young drivers make less insurance claims than those in higher age groups specifically because of their inexperience in driving – in short, they have been found to be more cautious. One tip for young drivers to effectively lower premium rates is to include, as a named driver, an older driver to their policy.
Married People Pay Less
Indeed, there is favoritism regarding marital status when it comes to the computation of car insurance premium rates. Based on studies, married people are ‘more responsible’ and thus get involved in fewer accidents and make fewer claims than drivers enjoying single blessedness.
If you change your marital status after you have signed for a plan, don’t forget to inform your insurer. You might be fortunate enough to get a rebate. Now, if you’re unmarried, don’t despair – not all insurance companies subscribe to this idea. This is why it’s important to shop around and compare quotes.
Click here to see Part 2: How To Get The Best Car Insurance Deal Part 2
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