There is a long list of insurance companies in the market, including both small and large companies that offer a wide range of car insurance options. While having several options is great for choice, it also makes it more difficult to compare policies and choose the best one for you. Some auto insurance tips can help you get the right level of coverage at a cheaper amount:
1. Do not presume any company to be the cheapest
Some insurance companies spend a large amount of money on marketing and promotional efforts. These efforts are made to sell you on the idea that they provide the lowest car insurance rates, but the truth is that no insurer can have the lowest prices for everyone and everywhere around the country. While an insurance company may be the cheapest option for someone belonging to a particular place, it might be the opposite for someone in a different state.
The sure-fire way to get the lowest possible rates is to keep shopping around. Here are a few examples of the difference in rates across major insurance providers at different places:
- Allstate Insurance usually charges an average of almost $1,300 annually in Alabama, which makes it the cheapest rate you can get without a military connection. The same average rate for GEICO is higher.
- The situation is quite the opposite in Oregon, where GEICO has the cheapest average rate of around $1,300. On the other hand, Allstate’s average rate is higher.
- Esurance offers the cheapest average rate of around $1,200 in California, but the same provider offers the most expensive rate in New York.
2. Consider regional and local insurers
One of the best auto insurance tips is to consider unconventional options. More than half of the country’s auto insurance business is controlled by four major companies: State Farm, Geico, Progressive, and Allstate. However, many small insurers can help you the same as these big companies. These regional insurers like Auto-Owners Insurance often have better ratings on customer satisfaction as compared to bigger names in the industry. Besides, they tend to offer lower car insurance rates as they are small companies.
3. Inquire about discounts
Insurers provide their customers with a wide plethora of discounts, which can lead to lower insurance rates in some cases. Here’s a list of people that insurance companies offer discounts to:
- People who buy bundle insurance packages like car insurance with homeowners insurance
- People who buy one policy for multiple cars
- People who have a clean driving record
- People who pay premiums annually or half-yearly
- People who can work with receiving documents online
- People who own a car with extra safety and anti-theft features
Although considering these is important, you should not make a decision based on the discounts you are getting through a certain insurance provider. Always remember to compare policies to get the best ones. If in doubt, you can consult a broker for the best auto insurance tips and advice suited to meet your requirements.