Motor Insurance Cheap

In this economy, most of us are trying to find ways to save money. Most people don’t realize that one of the easiest ways to save money is to take a second look at their auto insurance. A lot of drivers simply believe their auto insurance is already as low-priced as it is going to get. However, at the same time, they haven’t checked for a new quote in several years. A lot of changes occur in auto insurance prices every year, and many people could benefit from cheap motor insurance from the very same company they are using currently. Here are some tips on saving money through getting cheap motor insurance.

Shop Around for New Rates
Simply checking for new rates online can often reveal several companies that beat your current rate. In order to find a company willing to give a better rate, the best way is to use an auto insurance comparison website. By entering your information on one form, the website will submit it to several major insurance providers. The insurance providers then return quotes in a convenient format where they can be easily compared and the best rate chosen. Before choosing a new company, though, be sure to check their stability with the National Association of Insurance Commissioners (NAIC), your state insurance department, or the A.M. Best Company, a private third-party insurance rater and reviewer.

Check for Discounts
Many insurance companies provide consumers with a long list of possible discounts. If you are going to purchase motor insurance from a new company, be sure to ask them about all available discounts. If you want to stick with your own company, it doesn’t hurt to review their discounts. They may have imposed new discounts or your situation may have changed since you bought your policy. If you have two cars, be sure to check you are getting the multiple car discounts that most insurance companies offer.

Reduce Coverage
You may be paying for a lot of coverage that is not necessary. Getting cheap motor insurance depends on paying only for coverage that is necessary. Make sure you are not paying for hundreds of thousands of dollars in liability insurance that you don’t need. Also, if your car is older now, you may be able to do without collision or comprehensive coverage. If your financial situation has changed, you may also want to think about going with a higher deductable. Savings can be immense just by raising the deductible from $200 to $500 or from $500 to $1000.

Compare Payment Methods
Cheap motor insurance can become even cheaper if you follow a few payment stipulations. For instance, most insurance companies give a cheaper premium if you plan on accepting a yearly policy over a 6-month policy. In addition, rates will be less by paying-in-full up front. Another payment discount many insurance companies provide is paying through automatic EFT. The insurance company will deduct the payment automatically from your credit card or bank account. Since this greatly increases the chances of them receiving payment, they may be willing to give you a break for signing up.

Check Mileage
A big part of motor insurance rates are the mileage figures you gave the company when first applying for a policy. These figures include average yearly miles and miles driven to and from work or school. If you changed jobs, schools, or homes, or just drive less altogether, you may qualify to be in a lower rate group.