Why is it that some people pay hundreds of dollars more each year for the very same insurance coverage that someone else pays much less for? Some of it has to do with driving record and even their credit rating, but sometimes it just comes down to which car insurance agency they're working with. Before you purchase your next auto insurance policy, there are a few things you need to keep in mind.
Don't assume you're going to get the lowest rates if you have a tarnished driving record or bad credit. Many people think that a perfect driving record is enough to get a low insurance rate. While that was true ten years ago, it's no longer the case. Insurance companies now look at your credit rating in addition to your driving record. A few dings on your credit report can cause your insurance rates to hike up.
Another thing you need to factor into the equation is the type of car you drive. A car insurance agency is going to charge more to insure a Dodge Viper than they are going to charge to insure a Volvo station wagon. If you're really concerned with auto insurance rates, find out how much insurance will be on a specific car before you buy it.
If you have more than one insurance policy with an agency, make sure you're getting a multi-policy discount. If you don't, consider moving your homeowner's policy to the agency that insures your car or take out a small renter's insurance policy. It can provide you with a significant savings on your driver's policy.
Make sure you comparison shop. Your driver's record and your credit can be picture perfect and one car insurance agency may still charge you hundreds more than the next one for the very same coverage. Get apples to apples quote comparisons so you know exactly which car insurance agency is offering you the best deal.
Thursday, June 3, 2010
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