Low Cost Auto Insurance

Low cost or cheap auto insurance may sound appealing as long as it does not open one up to a myriad of possible scams. Anywhere from a fraudulent policy, to an insurance company who shuts their doors leaving you out in the cold or, worse the company or agent failed to get a state license. This state of affairs could leave you with a worthless policy and no coverage for you and your loved ones. So remember the old adage, “If it sounds too good to be true it probably is.” There are ways to reduce your insurance costs without increasing the risk of being taken advantage of.

Insurance Agents must be Licensed

The law requires all insurance agents to be licensed in the state where they market themselves as an insurance agent. So it behooves you to contact your state insurance department to run your potential agent’s license number and make sure he’s a legitimate insurance agent in your state. It’s usually written on their business card so just ask for one.

Make and Model of Vehicle

You’ll be amazed at the difference in the rates for cars in the same category and same sticker price at the dealers, when they are new. So, when buying a new vehicle simply add insurance rating, as part of the new vehicle equation. The other factor is used vehicles. They have already absorbed the vast depreciation which has occurred in the first few years of a vehicles life. This makes the rates more affordable. So a little planning can really position you for low cost auto insurance.

State Laws can have a Significant Impact on Required Coverage

Find out what the minimum auto insurance requirements are for your state. Is your state a no fault state or a tort state? Does your state require a driving class certification for young or old drivers? Does your state use credit scoring for discount rates? All of these answers can dramatically change your needed coverage and premiums.

Territory Statistics Can Change Your Risk Profile

The insurance carriers have tables which record the frequency of insurance claims in a particular area or zip code. If your neighbors are auto accident prone or love to file insurance claims, you could see a significant increase in your insurance premiums.

Insurance Ratings – Do Not Settle for Less than the Best

In this day and age it is best to rate the potential insurance company for financial solvency before securing the deal with your proverbial, John Hancock, The most popular company to use is A.M. Best Rating. You should not settle for anything less than an A rated company. There are many companies who are solid enough to achieve this rating so settling for less is an unnecessary risk.

In today’s economic climate, doing proper due diligence in selecting auto insurance could save you substantial financial hardship. Low Cost auto insurance can be seen in 2 ways. First, you could save on the premiums you pay up front. Second, and more important, a low cost auto insurance policy should save you substantially in the event of an accident or loss. A wise shopper will consider both sides before selecting a policy. The proper balance will provide you the coverage you need at a price you can afford.

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Finding an auto insurance company is not difficult, but finding the right auto insurance company can be challengling. Policy provisions vary from company to company, as do premium rates. When you are considering which auto insurance company to get coverage from, it pays to do some research to make sure that the company is a reputable one. You also want to ensure that your company has the assets to pay out a large claim, if that becomes necessary…
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