Car insurance is not only a necessity but also a mandatory requirement for motorists. At least, every motorist should have liability insurance coverage and other coverage to get protection for damage and injuries that occur in road use. However, insurance payments can be a burden for many motorists. Whereas having auto insurance is a legal requirement, you do not want to go bankrupt or become financially constrained because you do not carry insurance.
In addition, paying for the insurance should not put you in financial constraints. You need to have a piece of mind when you are paying for auto coverage. There are a number of ways you can lower your insurance costs and one is switching insurance carriers. If you have a shining credit report, changing insurance carrier may be a viable option as it may provide you with a cheaper coverage. However, if your credit report is tainted, it is advisable that you stick with your present insurance coverage company. Consumers who have bad credit usually pay more in insurance premiums to the tune of 20 to 50 percent when compared to those with good credit. Even before your switch, you need to know the reputation of that insurance firm. Attractive premium rates should not be the only consideration to influence you in making a choice to buy a policy with an insurance company.
The way in which the company handles claims is another issue. It does not make sense to pay cheap premiums in an insurance company that will hassle you when claims are placed. You may need to check your state logs complaints and see how different insurance companies have been varnished with complaints. High number of complaints should be a red flag to associate with that company. Insurance companies offer discounts to their loyal customers. This aspect brings out another point of sticking with your insurance company. While it is certain that switching carriers could save you money, on the other hand, it may be more advantageous to stick with your insurer. Some companies give loyalty discounts to those customers that have stayed for many years.
Other discounts may exists for customers who have maintained clean driving records, have cars with safety equipments like alarm system and airbags, or old drivers who complete safe-driving courses. Another way you may lower your insurance rates is by raising your deductable. However, you need to ensure that you only quote deductable that you can pay when you file a claim. Last but not least, you may need to drop some coverage especially if your car has covered high mileages. If you have a vehicle that is old or has covered a lot of mileages, you may need to do away with comprehensive and collision coverage. However, remember that you will not be covered if an accident occurs. If you maintain only liability coverage which is mandatory for motorist, it means that you are not covered for your own personal injuries, damage to your vehicle or theft. Because old cars are likely to breakdown easily, you need to consider some small coverage like towing and mechanical breakdown coverage that can offer you a piece of mind.
