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Why low car insurance rate is not the best

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If you are trying to find the lowest possible car insurance rate, there are certain steps you should take and things you should consider as you research your options.

Insurance rates are determined by a number of factors on a case by case basis.
Below are some things you can do to make sure that you are getting the best coverage at the lowest rates possible.

No one company should be assumed to be the cheapest, some spend lots of money on advertising and fancy commercials, but familiarity and name recognition does not mean that one company is cheaper than another. The bottom line is that prices of the same policies vary individual by individual even within one single company, no one company can claim to be the cheapest due to the fact that rates depend on factors of each individual driver. One company might be cheaper for one person while being the most expensive for another in a different area or State. The difference between the average and cheapest rate can be quite significant, the only way to be certain of the cheapest rate is shopping around.

Consider Regional and Local Companies

Four companies, -Allstate, Progressive, Geico and State Farm are in control of half of the entire nation’s car insurance policies and business. Meanwhile smaller and localized insurers such as Eerie insurance and Auto Owners insurance provide equal or even better service often times at lower rates than the big four companies do.

Explore Discount Options

Insurance companies offer various discounts and price breaks to customers in certain circumstances. Discounts usually apply when multiple cars are bundled into one policy, drivers have no points on their license and a clean driving record, premiums are paid in six or twelve months advance, drivers agree to paperless online billing and documentation, drivers are members of affiliate groups and professional organizations and when cars are equipped with safety features and anti-theft devices. Insurance company websites list these types of discounts, you can also consult with company agents to find out what applies to you.

Good Credit: Pay on Time

Insurance quotes are affected by your credit with the exception of three states in which it is illegal to factor in credit ratings. A customer’s credit in the eyes of insurance companies correlates with the likelihood of ever having to file a claim. Keep your credit score up and your premiums are likely to come down as your debts do, you can track progress by checking your credit report once per year for free.

Factor in Insurance Cost When Car Shopping

Beyond the usual factors considered in the car buying process, – repair costs and fuel efficiency, you also should consider how much it costs to insure the car you are considering buying. The cost of insurance can vary between similar and best-selling models by a few hundred dollars yearly.

Follow the below mentioned tips to avail the best deals on your car insurance:

  • Make sure that you compare a lot of insurance policies before making a final decision.
  • Choosing a higher voluntary deductible will reduce your vehicle insurance premiums.
  • Installing advanced security devices in your car can reduce the premiums significantly.
  • The make and model of your vehicle will also impact your insurance premiums. For example, a luxurious car will attract a higher premium than a normal family car.

CNG fitted cars will have a slightly higher premium than petrol or diesel models.
Additional covers on your vehicle insurance are likely to increase your insurance costs. So, choose the add-on options with care.

Companies take into consideration the Insurance Declared Value (IDV) of your car while deciding the premium amount.

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