Auto Insurance Lowdown: How To Snag the Best Rates

Hello, and Happy July, everyone!  There are so many wonderful things about the summer, and so many people who eagerly look forward to this lovely time of year.  Swimming, hiking, parasailing, joyriding…blue skies and blazing sun encourage all sorts of outdoor activities.

One other activity that tends to find its way into our summer routine, however, is sort of a hybrid indoor/outdoor: the purchasing of a vehicle over the summer sales.  Memorial Day (okay, that’s Spring, not summer, but it sort of counts), Juneteenth, Fourth of July, Labor Day all weigh in; national holidays tend to encourage auto dealerships to roll out the deals. And who can resist a deal?

And speaking of deals, whether the summer has got you in the market for a new car, a gently used truck, or if you’ve just inherited your grandma’s motorbike, you’ll still need to insure your vehicle.  And one of the most frequently asked questions about auto insurance is: How do I secure the best (cheapest) insurance rates possible?

And you know us…here at eTags, we love to help.  So here is a handy list of tips (some call it the Holy Grail of insurance wisdom, but we’ll leave that judgment up to you!) to help you snag the best possible automobile insurance out there.

1. What’s right for them may not be right for you.

Just because an insurance provider happens to give your best friend or third cousin a great deal, it does not mean that you will enjoy the same rates.  Policies vary greatly from person to person, and are dependent on many different factors.

It’s good to keep an open mind and shop around for the company, coverage, and rate that’s a best fit for you.

2. Give the little guys a chance.

Oftentimes, small and regional insurance companies will not only offer lower rates, but they also tend to garner a much higher level of customer satisfaction.  By skipping the four insurance giants (like a good neighbor saving you fifteen percent, we all know the commercials by heart) you may just land on a local provider who will more than meet your insurance needs. Lower rates and better care…sign us up!

3. Don’t be shy: inquire about the deals.

Many insurance companies have a stack of discounts available…but only if you ask.  This is a great example of the squeaky wheel getting the grease. Before you sign up, get curious, because you may qualify for a break in policy rates if you:

• Insure several vehicles with the same company
• Pay your six-month or yearly premium fees up front
• Bundle auto insurance with other policies. For example: homeowners, renters, or boat insurance
• Own a vehicle with advanced safety or anti-theft features
• Have a squeaky-clean driving record

4. Increase your deductible.

If you know you’re able to easily meet a higher deductible in case you ever need to file a claim, you could possibly lower your overall rates. Your liability for other vehicles won’t be affected, but as you increase your personal financial responsibility for your own car, truck, SUV, or motorcycle, the chances of a cheaper premium goes up as well.

You may pay more out-of-pocket for repairs, but your overall policy could be lower; it’s worth asking your provider what the difference in rates could be.

5. Improve your credit score.

For some reason, insurance companies are convinced that a person’s credit score is directly related to their chances of filing a claim. Meaning, the higher the credit score, the less likely it is that an insurance claim will be filed.  Whether or not that is true, this belief held by providers can affect your policy rates.  Apart from states like California, Massachusetts, and Hawaii, where this use of credit score inquiry is illegal, it is a good idea to try and increase your credit score in order to secure lower insurance rates.

6. Consider insurance rates before buying a vehicle.

If possible, consider the type of car in which you are interested in terms of insurance coverage.  Automobile insurance varies greatly depending on factors such as: make, model, year, color, safety features, anti-theft features, and more.  If low insurance premiums are important to you, then the car/truck/SUV/moto you purchase should be the first aspect to research with regard to how much insurance will cost. For example, a Honda Civic will garner a substantially lower premium than a Ferrari.

7. Go basic.

If your vehicle is an older model, you stand to save a lot of moolah by skipping the comprehensive and collision coverage options. That’s to say, the maximum amount an insurance company will pay out for the repair of a vehicle due to collision, general damage (from factors such as bad weather or vandalism), or theft is the total value of what your car is worth. If your trusty ride has been around the block (or country) a few times and has a low market value, often the extra coverage may not be pennywise.

8. Look into usage-based insurance.

If your vehicle only sees the light of day on rare occasions, you might want to consider pay-per-mile insurance coverage.  For folks who really only take their car out on the weekends, and perhaps never even leave town, this sort of policy may be just the thing. Some insurance companies offer programs in which they will track your driving with an in-car device – distance, time of day, and safety – and charge you accordingly.  And for some people, only paying for what they use makes the most sense economically.

And there you have it, the ultimate guide to starting your auto insurance policy search. And since you’ve visited us here at eTags, you know that we’re going to offer more help….cause that’s what we do.  You can easily compare insurance quotes online here at our site at any time of day or night. Simply enter in your zip code and you’re off to the races!