You may read in the newspapers or online that our economy is turning round. There are apparently more jobs. The housing market is recovering. Everything that was wrong during the recession is now set right and it’s all plain sailing from now on. Well there’s just one problem with all this. The economists who produce all this encouraging news don’t live on Main Street. It’s all theory for them. The practical reality is large numbers of people have given up looking for work and are only in their homes because the mortgage lenders have held back on the foreclosures. In such a climate, you need to stay cautious and ensure you always get the best value for money going. For insurance, this means shopping around to find the lowest rates for the cover that works best for you. Here are some tips.
If you take a sample of one or two insurers, you will either be the luckiest person on the planet or find poor value. Only when you get a full cross section of the premium rates on offer can you see the range of choice and pick the policy that’s going to give you the best value. This means getting quotes from the maximum number of insurers selling policies in your state and covering a broad range of different options, e.g. on different makes and models, the amount of the deductible, and so on.
Choosing the right make and model
Although you don’t change your vehicle that often, it’s always important to buy the right vehicle. This means looking carefully at the safety ratings produced by the National Highway Safety Traffic Administration. The general rule is the safer the vehicle, the lower the premium. Remember this applies equally whether you are buying new or secondhand. Every year, your local state’s Insurance Commissioner will issue premium rate guidelines for each make and model. Combine this information with that from the NHSTA and ensure you get the lowest rates.
Buy only the cover you need
If you have an auto loan, the lender will dictate which policy to buy and the minimum insurance values. Once you have paid off the loan, you can make the decisions. Think carefully about the value of your vehicle and how much it would cost to replace if it was totaled. For vehicles with low replacement values, it may make sense only to carry liability cover. If you have assets to protect, go for generous safeguards. With today’s medical expenses being so high, it makes sense to have large sums available if you are unlucky and cause serious injury to someone. Get Auto insurance quotes for big numbers. But if you live in rented accommodation and have no assets, there’s no need for you to carry anything more than the mandatory minimum.
There are good discounts on your Auto insurance quotes if you insure multiple vehicles with the same company or buy both home and auto insurance cover.