When it comes to auto insurance, it can be difficult to find a good balance between quality coverage and a low monthly premium. After all, you want to make sure you have enough coverage that really protects you financially if anything goes wrong, but you don't want to pay a small fortune planning for a situation that hopefully never becomes reality. Thankfully, it is possible to have the best of both worlds when using the three tips outlined below to help you score a lower auto insurance quote.
Choose A Policy With A Higher Deductible
When purchasing auto insurance, you can expect the rate of your monthly premium to drop as the deductible associated with your policy rises. While you may be worried about having a larger financial obligation in the event of an accident, the truth is, choosing a policy with a higher deductible is often one of the most effective way to save money on your insurance needs. This is because, no matter what happens, you typically come out ahead from a financial standpoint. To help you better understand how this works, consider the following example.
You have two different policies to choose from. One requires you to pay a $500 deductible while the other requires a $1,000 deductible. The policy with the higher deductible is $50 less each month. Choosing this higher deductible policy will save you $600 a year on your insurance costs if you do not end up filing a claim. In the event that you do need to file an insurance claim, you will still have saved $100 over the course of the year by choosing this higher deductible policy.
Use An Insurance Broker To Collect Quotes
Collecting auto insurance quotes from several different insurance companies can be a very time-consuming process. However, comparing rates is a vital step in securing the lowest possible price on your insurance needs. Working with an insurance broker can help you to get the competitive quotes you need without having to do all the legwork yourself. Even more impressive is the fact that you can utilize the services of an insurance broker for free.
Be Mindful Of Your Credit Score
Like many things in your life, the cost of your auto insurance can be impacted by your credit score. Insurance companies routinely offer lower rates to individuals with good credit because they are less likely to default on their policy. If you know you are planning to shop around for insurance in the near future, avoid things like making large purchases or opening a new line of credit since these actions can lower your credit score in the short term and could ultimately result in a higher auto insurance quote.