Every motorist yearns to lower their car insurance premiums. With insurance rates increasing and disqualification from various policies becoming more common, it may seem like a daunting task. But rest assured, you have more control over your rates than you realize and today, I will guide you through the exact steps you need to take to start getting the best car insurance rate in town.
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About the Author
My name is George Azide. As the founder of The Agent’s Office and an insurance professional with half a decade’s worth of experience in the industry, I have also guided thousands of personally guided customers to find savings on their coverages, aside from just the standard discounts.
Dispelling Misinformation
Before deep diving into the details on how to get the best car insurance rate in town, it’s worth mentioning that much of the advice you find online about reducing insurance rates is often misleading. Suggestions like asking for discounts, adding or removing drivers might not always yield fruitful results. You might come across various discount schemes your insurance company offers – such as telemetrics, good student discount, and others – but even if these discount schemes may seem beneficial, they certainly do not offer you much control to distinctly lower your rates.
Impossible as it might seem, savings on your car insurance can be realized by breaking it down to the atomic level. If you understand the specific coverages you’re paying for and are aware of what the least and most expensive coverages are, you’ll know what you precisely need to change to achieve savings.
ALSO READ: Why Did My Insurance Go Up?
Your Car Insurance Coverages, Ranked from Least to Most Expensive
To help you understand the specific coverages, below is a detailed ranking of your car insurance coverages – starting from the least expensive:
- Roadside Assistance Service: Also referred to as emergency road assistance, this is a key service that provides assistance in case you run out of gas, need a tow, get a flat tire, lock your keys in the car, or strand on the side of the road. It is very inexpensive and a helpful coverage to have on hand.
- Rental Car Coverage: Although the exact monthly cost varies per company, it will typically save you $3-$7 per month if removed.
- Personal Injury Protection (PIP): The third least expensive coverage in your policy. This coverage pays you out if you get hurt in an accident and end up in the hospital.
- Uninsured Motorist Coverage: This coverage takes care of your damages and injuries if an uninsured motorist hits you. In certain states, where the percentage of drivers without insurance is lower than average, you might consider whether you want this coverage or not.
- Comprehensive Coverage: This coverage ensures that your vehicle is covered in case of natural disasters, damages sustained from other issues not involving car accidents, hail damage, theft, vandalism, etc.
- Liability Coverage: Mandated by law, this is what protects others from you in the event of an accident where you cause damage to their car or injure them.
- Collision Coverage: By far, this is the most expensive coverage in your policy. It is what forces the insurance company to pay for two vehicles in a car accident scenario where you are at fault.
Conclusion: Control what you can, for significant savings
By having a thorough understanding of different coverage types and their associated costs, you now have the power to single out the ones you may want to change, the ones you want to retain, or the ones you may want to get rid of entirely.
Just remember, while insurance premiums can seem hefty, it’s an essential protection you have against untoward incidents. Knowing exactly what you’re paying for and what risks you’re willing to take on will help you make informed decisions on changing or retaining your plan.
Quote
“Insurance is a necessary evil. You’d rather have it and not need it than need it and not have it.”
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