With the seemingly never-ending rise in gas prices, we're all looking for ways to save money on car-related expenses. In order to save on car insurance you'll want to do some research on insurance policies and your own credit score. You'll also want to take into consideration some details that you probably haven't thought about before. If you haven't purchased your car yet, or you're planning on buying or leasing again, choose a car that doesn't have all the fancy "bells and whistles." For example, turbo features on a car are likely to make insurance companies think that you speed, and thus, require more coverage. Additionally, cars with higher theft rates cost more to cover, while owners that have secured parking for their car can enjoy lowered rates.
Whether you've already purchased the car or not, you need to take your credit score into account. Chances are if you're worried about your credit score, it's probably not the best it could be. If you want to have a higher credit score in a short period of time, start paying off all your bills and overdue debts, and more than just minimum amounts required. Remember, insurance companies can use your credit score against you, as they bring it into play when underwriting and rating your preferred policy. Additionally, insurance companies can check your credit history when you're ready to renew a policy, which can affect your premium and even lead to a non-renewal.
Before you get all stressed out, shop around and look at various insurance companies. While you're researching, be sure to keep a record of all the information and paperwork you've received, especially quotes. Get all of your quotes in writing, in order to avoid confusion in the future. Even if you think you've found the perfect insurance coverage you'll want to do a few things before you commit. First, call your state insurance department and make sure the specific company is licensed to do business in your state. Additionally, the insurance department will be able to tell you if there have been many complaints filed against the company in your state, which is valuable information.
While you're shopping around you also want to consider the amount of liability coverage you'll need. Basic liability usually covers property damage, injury to another person and court costs. However, states have minimum liability requirements, so be sure to find out what the coverage is where you live. When researching insurance companies, you'll always want to make sure you're informed of several different coverage options, including:
• Collision. This insures a vehicle against accident damage.
• Comprehensive coverage. This includes damage to a vehicle that occurs from something other than an accident.
• Medical coverage. Auto medical coverage pays medical expenses relating to an accident. If you don't have health insurance, you should definitely consider medical insurance on your auto policy.
• Uninsured/underinsured motorist. This coverage pays for damage to a car that is caused by a driver that has no insurance, or not enough insurance.
Insurance policies can be your key to saving money on car-related costs. In order to get the lowest insurance rates shop around, make your credit score worthwhile and consider bundled packages.