March 31st, 2021 | Updated on December 2nd, 2021
Car insurance is important. Not only do you have to have it but if you ever need it you’ll be really glad you have it. Even knowing that auto insurance is necessary and helpful doesn’t make paying for it any more fun.
The truth is no one loves writing a big check to their car insurance company every month. So the best option is to find quality car insurance at the lowest possible rates. Let’s go over 4 helpful tips you can use to find the cheapest auto insurance rates for you.
Don’t Sleep On Your Credit Score
Unless you live in California, Hawaii, Michigan, or Massachusetts it is perfectly legal for an auto insurance company to use your credit score to help determine your rates. At least 95% of car insurance companies in the remaining forty-six states use your credit score are part of their risk evaluation.
People with good credit scores can save hundreds of dollars a year on their car insurance. Whereas if your FICO score is under 600 it can cost you. If you want to make sure you’re getting the lowest auto insurance rate possible — work on raising your credit score.
You can raise your credit score by paying off debts, making payments on time, and keeping old lines of credit open. If you’re diligent with these actions you can increase your FICO score and lower your car insurance rate.
Research Rates Before You Buy A New Ride
If you’re in the market for a new car you’re probably already thinking about things like fuel efficiency, safety ratings, and resale value. But don’t forget to factor in insurance rates.
Your insurance rates are based on company-specific algorithms that factor in information like your age, marital status, zip code, length of your daily commute, and driving history.
A lot of these factors may be hard to control but if you’re shopping for a new car there’s one thing you can control — the make and model of your new vehicle.
Before heading to the dealership do some research on vehicles that tend to receive lower insurance rates. If you’re in between two cars compare coverage rates for both.
Don’t Rule Out Skipping Comprehensive And Collision Coverage
In most cases, you’ll want to make sure you have comprehensive and collision coverage to make sure you’re covered in case of damage to your vehicle from a collision, theft, or other accident.
But if your car is fairly old, paid off, and not worth much the cost of comprehensive and collision coverage could end up being more than the value of the car.
Insurance will only pay out the value of your car. So if the value of the car is less than what it would cost to insure it look into getting a waiver to lower your rate. Which brings us to…
Always Shop Around
Car insurance can sometimes be like sports teams — we inherit whatever our family and friends love without much thought. Loyalty for the sake of loyalty. That may work for picking a hockey team, but it’s probably not the best way to get the lowest auto insurance rate.
Don’t assume that just because you’ve been with the same company for a while that is the best rate out there for you. Similarly, because insurance rates have so many different factors the best company for your neighbor may not be the best company for you.
That’s why you should always shop around to Compare Auto Insurance. You’ll never know what the best options are until you look.
So there you have it 4 simple ways to find the lowest auto insurance rates for you. Control what you can — including your credit, your car, and what kind of coverage you have — but most importantly always be open to finding a better rate by comparing your coverage against other providers.