Shopping for Auto Insurance: 5 Tips to Help You Get the Lowest Rates

When shopping around for auto insurance, cost and coverage are equally important. While you want to ensure you choose a policy that offers adequate coverage so you don't find yourself dealing with huge out of pocket expenses in the event of an accident or natural disaster, you also want to ensure that you secure a monthly rate that is affordable and fits into your personal budget. Finding this perfect combination can be a rather difficult task at times. Thankfully, the tips outlined below can help to make this task considerably easier.

Tip #1: Don't Be Afraid Of A Slightly Higher Deductible

While you may be worried that a higher deductible will leave you paying more if your vehicle is damaged in an accident, the fact is a slightly higher deductible often has the ability to save you more in the long run. This is because raising your deductible by even a few hundred dollars can result in significantly lower rates each month. Even if you do end up having to pay this higher deductible, the savings you will enjoy will often far outweigh the extra cost associated with the higher deductible. 

Tip #2: Ask About Safe Driving Discounts

Many auto insurance companies now offer a variety of ways for you to prove you are a safe driver, thus allowing you to reap the benefits of your safe driving habits in the way of special discounts. For example, many insurers now offer driving apps that can be downloaded to your phone to track your driving habits. The safer you drive, the more significant a discount you will qualify for.

Tip #3: Explore The Option Of Buying Online

As with many things today, you can often find a lower price online when shopping around for auto insurance. This is because, just like other brick-and-mortar businesses, auto insurance companies are able to enjoy lower overhead costs when offering their products and services online. This lower out-of-pocket cost typically equates to lower rates for customers who choose to shop online. 

Tip #4: Utilize The Services Of An Agent

Auto insurance agents are experts when it comes to figuring out exactly how much coverage you really need and what types of discounts you may qualify for. Best of all, auto insurance agents don't charge you for their services. Instead, these agents earn their paycheck in the way of commissions whenever someone decides to purchase a policy. Consequently, there really is nothing for you to lose by choosing to take advantage of these expert services. 

Tip #5: Ask About Loyalty Discounts

Auto insurance companies often offer a variety of discounts based on different measures of customer loyalty. For example, you may be able to secure a discount if you choose to purchase more than one type of insurance policy through the same company. You may also qualify for a different type of loyalty discount after maintaining an active policy with the same company for a certain amount of time. 

For more information about auto insurance, contact a local insurance company near you.