The one mistake many people make are look at the size of the deductible. Just how much do you have to pay before the insurance steps in. It seems more attractive to have a low deductible but what they don’t realize is that the cost for the coverage increases with a low deductible. This may make sense if you have a really old car, that is over ten years old, but if you have a fairly new car with a lot of extras than taking on a higher deductible means you save on the cost for the coverage. As for having an older car check to see if you need coverage to cover theft and fire etc. Try and get an estimate on the car’s current value at a dealer or body shop. Then decide how much you want to cover in your insurance.
Look over the different things included in your insurance. Is it necessary to pay extra for towing? It might be better to keep your car in good shape and also have the equipment, like a tow rope, just in case you break down and can get help from someone. Learn to change a wheel and check out the spare in your car so that it is full of air and is in good shape. Knowing a few basic skills in car maintenance will save you money. The same goes for having to rent a car. Check out what a rental car may cost and that you may need it for at least a week while your car is being repaired than check that against the total cost for paying for a rental in your coverage. Also don’t forget that all the extra equipment you put in like an expensive sound system and such like are not going to be completely covered in an insurance unless you specify that when ordering a policy. It might be better to have a great sound system at home and settle for a less attractive one in the car. This cuts down the incentive for anyone to break into your car to steal the stereo system.
Do not rush into choosing an insurance company because of a flashy advertisement or claims that they offer the best for the least. Use the Internet and get quotes from different companies. Try and figure out a limit on what you want to spend on the insurance and then ask to meet with an insurance agent and discuss the different options with the agent. As a potential customer the companies are eager for your business so use that to get a good deal. (more…)