Get Super Cheap Car Insurance
Many drivers make costly errors when buying car insurance. While auto insurance is something all drivers must have, there is no reason to pay more than is necessary for the coverage. There are several common mistakes people make when shopping for car insurance and eliminating these errors can help drivers get super cheap car insurance.
Although low premiums are important, it is just as important to have enough coverage. Owners of late model cars with high loans may find their car is worth less than the amount of their loan. Collision insurance will only cover the actual cash value of the car and the owner is responsible for the balance on the loan. Gap insurance pays the uncovered balance on the loan. Once the value of the car exceeds the balance remaining on the loan, gap insurance should be dropped.
Insurers may charge a late fee for payments which are received after the due date which increases the cost of the premium. If the company sends a notice of their intention to cancel the policy for non payment and payment is received after the cancellation date, there may be additional charges for reinstatement of the policy. Any accident that occurs before the insurer receives payment will not be covered and the driver will have to pay the damages plus legal penalties for no insurance.
Renewing Expensive Insurance
Many people renew their existing insurance policy without bothering to check the rates of other companies. While the policy may have been the cheapest when it was purchased, rate increases may have changed that. Before renewing a policy, drivers should get free online car insurance quotes to compare rates. Getting really cheap auto insurance requires that drivers do a little homework to save money.
Failing to Report Changes
Drivers who retire from work or who move closer to their job may not report these changes to their car insurance company. Insurance rates are partly based on the number of miles the driver travels in a year. When a driver uses his or her car less or doesn’t drive as far, he or she may be eligible for a reduction in insurance rates. Reporting changes in driving habits is an easy way to get super cheap car insurance.
Paying in Installments
It is easier to pay car insurance premiums monthly but it costs more money. Most insurance companies add a finance or service charge to monthly bills. Drivers who pay for their policy in full at the time of purchase can save as much as 10% on their auto insurance premiums. Paying three or six month installments costs les than paying than monthly installments. Consumers who want super cheap car insurance should try to pay premiums for the full policy term when they buy insurance.
Car owners looking for super cheap car insurance should make sure they take advantage of all the discounts for which they qualify. There are other steps drivers can take to reduce the cost of auto insurance, but correcting these mistakes can save drivers money. Getting free online quotes to compare rates is a quick and simple way to find the cheapest possible car insurance.