Car Insurance Rate - Don't Pay Too Much

No matter who you ask, everyone feels their car insurance rates are too high.

With the cost of repairing newer vehicles car insurance rates have skyrocketed. Which means that a lot of people (especially people with bad credit) are dropping their insurance altogether. That’s of course the wrong solution. If you think you have problems now they will quadruple if you have even a little fender bender. In California where I lived for 30+ years the state would confiscate your car!

Here’s Some Ways You Might Be Able To Get A Better Car Insurance Rate:

Fix Your Credit:

Did you know that a portion of your car insurance rates are based on your credit score?

Pull your credit and see what your score is. If your score is below 620 then you need to work on getting it higher.

1. Write the bureaus and ask for them to eliminate things that are inaccurate
2. If you have something REALLY wrong then contact a credit attorney and pay an affordable monthly fee to fix your credit

Know The Minimum Car Insurance Coverage That Is Required By Your State:

Most states will require some type of minimum coverage so ask the broker what your state’s minimum requirements are.

For instance in Alabama the minimum requirement is only $20,000 for bodily injury for one person and $40,000 for all people, and $10,000 for property damage.

But be careful! If you hit someone driving a $40,000 vehicle causing $20,000 damage and your insurance only pays $10,000 guess who’s going to pay the difference?

If you MUST, get the least amount you have to, but if you can afford a more then we recommend you do it.

Comprehensive And Collision Coverage:

This is the amount of coverage on YOUR vehicle. If your car is 10 years old or older you don’t need it.

Most cars 10 years or older are only worth $2,000 to $4,000. So covering it for up to $10,000 in damage is foolish. You won’t get that much if the car is totaled so concentrate on bumping up the amount of coverage for the OTHER driver’s vehicle and for bodily injury. These are what can impact you most if you are in an accident.

Coverage Your MUST Have:

Uninsured or under insured coverage. There are so many people on the road today with no car insurance, if you are hit by one of them you have two choices. Pay the bills yourself and sue them in court (good luck with that), or use your uninsured motorist insurance to get your car repaired and pay your medical bills. So even if you are trying to get the cheapest car insurance rate possible, try to budget for uninsured coverage.

A Final Way to Save Money On Your Car Insurance Rate:

Shop online and don’t necessarily go with a major insurer. Who do you think pays for all those ads you see on TV? YOU DO. Through higher car insurance rates. Take a look at our selection of auto insurance providers.