Auto insurance is always one of the more expensive costs associated with operating a car, but few people realize how many factors go into the ultimate cost of their premiums. To that end, there are several ways you can optimize the price of your policy without compromising the extent of your cover. Here are 4 things it’s always worth thinking about when purchasing car insurance.
Your Type of Insurance Policy
The first thing you must decide is what type of policy you would like to purchase. In most states, liability insurance is required as a legal minimum to drive a car. This is the cheapest form of policy, but only covers damage to third parties that you would otherwise be liable for, such as injuries or damages to property that were your fault. As a result, so-called comprehensive insurance is also often purchased, which protects against damages to your vehicle arising from most common circumstances. The extent of such policies can differ substantially, though, so it is important to read the details of any policy carefully. It’s also worth considering uninsured/underinsured driver coverage, to protect against cases where other drivers damaged you or your vehicle without the proper insurance to pay for it.
Some insurers can take advantage of the inconvenience of switching providers to offer their existing customers sub-optimal rates. As a result, it is important to regularly check the cost of your premiums against those of other providers, to see if you are getting the best deal. This can easily be checked by searching, for example, for “cheapest car Insurance Kentucky” on the internet, or by checking a price comparison website. Such websites often also have user reviews of insurance providers and comparisons of other aspects of the insurance, such as the costs of extras.
Any Extra Coverage
It’s also worth thinking about any additional coverage you want on your policy, depending on your specific circumstances. While it is never ideal to add unnecessary costs to your premiums, it can be much cheaper than having to pay for certain scenarios out of pocket. For example, if you need daily access to your car, courtesy car cover can be a helpful extra. Similarly, vandalism or total theft insurance may be worthwhile, depending on your location. “Comprehensive” policies may include some of these extras, but due to their variability, it is always important to check.
There are many ways savvy drivers can reduce the cost of their premiums, so it’s always worth considering these, too. For example, increasing the amount of your deductible from $200 to $500 can cut the cost of your premiums by up to 15%. Similarly, many insurers also offer reductions for the installation of telematics devices in your car or for switching from monthly to annual payments. Finally, maintaining your no claims bonus can be one of the most effective ways of decreasing your insurance costs, as, after several years, this can reduce your premiums by over 50%.