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Top tips to consider about auto insurance

Updated on May 25, 2011

Let’s face it, insurance rates are climbing everyday and many people find it daunting to afford the kind of insurance their car requires. This is not to say that you can choose to opt out of insurance for your vehicle altogether. You will have to take some policy and the only thing to do is hunt around for a suitable deal. Now the fact is that the market has many different kinds of insurance to offer for vehicles. There is liability insurance, collisions insurance, comprehensive insurance, third party insurance and more. Now a lot of this may sound very Greek and Latin to most people. It becomes important to compare the costs in the market a little to get a fair idea of what is the best possible deal.

Insurance rates differ

Whether you are senior citizen or a student getting their first car, there is nothing better than comparison shopping when it comes to getting the best possible deal. When someone has been able to consistently pull off driving their car without any accidents or claims being made, insurance companies know they are a low risk driver. Today another reason many companies have hiked their premiums is because of the increasing number of insurance frauds happening. This is resulting in losses amounting to millions for both customers and policy holders. Make sure you are alert about any possible instances of fraud.

Many insurance companies offer a different quote for shorter mileage covered. If you are someone who will be using your car for very short distances and not very frequently, you may get a better deal on your insurance quote. When you travel lesser distances, the chance of you having an accident is considerably reduced. This means you are again in a lower risk category and hence eligible for a better insurance premium.

What insurance coverage do you need

Another thing to consider is whether you really need everything you are paying for when you opt for an insurance policy. If you really don’t need roadside assistance, you can eliminate this from your quote. In addition, see what else can be knocked off. A car with multiple security features will also mean a lowered insurance quote. Discuss your options with at least 3 different companies, you will find some margin of difference for sure. Many people also make a mistake of opting for the least amount of coverage, just for namesake. This is also a bad idea as you never know when you may be in a situation where your coverage will not cover the losses incurred. 


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