One of the most common mistakes people make when dealing with car insurance is buying the very first policy they run across without even realizing the basics of car insurance. And as a result, people complain about overpaying for the coverage they often don't even need. In order to avoid such situations, it is very important to learn some car insurance basics before you do any shopping. Here are some of the most important things you have to keep in mind:
Of course, your age, sex, driving record and experience also count to an extent. But when it comes to calculating rates, it is your car that will have the largest weight in the premiums you'll pay for insuring it. Its engine volume, power, top speed, make, model, year of production, safety features, repair costs and theft rates are the factors determining your final rates. So before you start looking for cheap car insurance make sure your car allows you to get one. And if you're only deciding on a car to purchase, these factors should be taken into account too.
This means that you can spend some time on comparison shopping and get really good rates. Most companies use the same techniques for calculating rates, but they all have different claims history, which will ultimately affect the rates you'll get. So if your quotes are too high with one company, you will probably get more competitive rates for the same vehicle at another company. Even if you already have a policy, you should check the competition at each renewal date – maybe there's a more competitive offer available for your car that will let you save more money.
Sure, buying insurance from an agent can be easy, but in most cases you will be limited in your options and the quotes you get. Shopping for car insurance online gives you the advantage of getting a lot of quotes in a very short period of time. There are a lot of sites where you can easily compare quotes from different providers with just a few clicks of the mouse and apply using an online form. It's much easier and faster than contacting an agent, broker or the insurance company directly. And this way you will certainly find a good policy to save money with.