Car Insurance: How to Choose Adequate Coverage at an Affordable Cost

It is needless to mention that it is quite important to have an auto insurance policy if you have a car of your own. Everyone wants to find the best deal on car insurance policy; that is, the one that provides maximum or adequate coverage at an affordable premium cost.

How to save money on your auto insurance policy
You can certainly save money on your auto insurance policy if you follow the 6 tips discussed below.

1. Clean up your credit record:Your credit record plays a significant role in deciding the premium cost of your car insurance policy. Therefore, if required, clean up your credit record before purchasing the required insurance coverage.
2. Shop around for quotes:You must shop around for auto insurance quotes; the more, the better. While shopping for rates, one of the best ways to get the best deal is to get insurance quotes from big companies. Then, you should contact independent insurance agents, who work with these big companies. These agents may help you get additional discount thereby providing you with the best quote.
3. Drop insurance coverage:You may drop comprehensive or collision coverage if you’ve driven your car for quite a long time. This is because the comprehensive and collision coverage account for 40% or more of the cost of your auto insurance premium. Therefore, it is absolutely not worth paying the coverage if a claim payment that you receive is less than what you need to pay for the premium.
4. Increase deductible amount:A deductible is an amount that you need to pay out of your pocket before your insurance company pays for the claim. You can increase the deductible by about $300 in order to reduce the premium cost by about 30%; the more the deductible, the less you’ll have to pay for your premium.
5. Buy the right car:The car with high repair costs and theft rates usually cost more to insure. Therefore, before buying a car, you may call your insurance agent to know about the difference in the costs of insuring different car models. Thus, you can buy a car for which you’ll have to pay a lesser premium.
6. Ask for discounts:While purchasing your auto insurance, you can ask for various discounts, though it varies from one state to the other. Some of the discounts that you can ask for are listed below.

• Defensive driving classes – You can get 10% discount on premiums if you’ve done this course.
• Combination discount – You may get discount if you insure your car and home from the same insurer.
• Retirement discount – If you retire, especially at a young age, then you’re eligible to get a discount as you’ll be driving your car less.
• Safety discount – You get discount if you have certain safety devices in your car.
• Good student discounts – Students can get up to 25% discount if their GPAs are more than 3.0.

Apart from above, the insurance company may offer you a loyalty discount if you purchase your auto insurance policy from the same insurer every time.