// This is an off topic rant and guide to getting cheap car insurance! //
I have been paying my car insurance premium for more than two decades now. But, somehow, I have never really understood as to how exactly car insurance premiums are calculated. I’ve been paying blindly, not knowing anything about how to find deals on auto insurance.
Well this Friday I decided it was time to stop being so ignorant. I did some googling and learned a lot!
Before, I used to often think that I was not a good bargain hunter and that was the reason for never getting a good ‘deal’ while buying an car insurance. Perhaps, my friends were better ‘negotiators’ and that was the reason that they were getting a good bargain every time.
Well it turns out that’s not the case. My friends or no better or worse negotiators than me. The only difference between us was that they would compare much more companies than me.
I would get a quote from 1-3 companies tops, while I just found out my friends would get 10+ quotes.
Basically more quotes = you getting cheap car insurance. Not rocket science!
I found a great site: autoinsurancemonkey.com. I put in my zip code and than got about 10 quotes for very cheap car insurance no deposit. Pretty amazing. I thought I would have to call 20+ insurance companies and talk to an agent to get a quote. I keep forgetting I’m living in the 21st century!
Here’s some stuff I learned
A lot of factors have a direct link with the car insurance premium you pay. The age of the driver and type of car are two major factors. A 21 year old driver will be required to pay much more premium for his sports car as compared to the premium which a 46 year old driver will be paying for his 4-door sedan. Driver history in terms of accidents will be another key factor.
Some other factors which may affect your car insurance premium include type of insurance cover required; make, model (or age) and value of your car; driver’s sex (since some companies offer a discount to women drivers); driver’s occupation; intended use of your car, namely business or pleasure; accessories fitted in the car and number of miles that you do each year.
If you want more coverage, something like full coverage car insurance: http://www.autoinsurancemonkey.com/how-to-get-cheap-full-coverage-auto-insurance/ your going to pay much higher premiums than if you get some basic coverage. I would always buy as much coverage as I could afford. Which makes no sense, since I’m driving a 13 year old car!
Less coverage is the smart thing to get sometimes.