Posts tagged ‘insurance premiums’

The facts about getting the best rate on car insurance

Every year drivers make an important decision regarding their car insurance. They either switch their insurance carrier or make an adjustment to their coverage. There are several reasons people make these kinds of changes, but one reason stands out farther than others. Each year insurance premiums increases, and drivers are always looking for cheaper rates and better deals.

Knowing a little about the insurance company, before signing the contract can avoid disappointments and confusions in the future. Most insurance companies do not give true or accurate quotes, and when the payments are due, they are higher than the quoted price.
It is important to realize that insurance companies are businesses, and they are out to make money. Here are a few facts to note about insurance companies and how they work.• Your credit score affects how much you pay for your insurance. The higher your credit score the lower your payments will be. Although, they don’t use the same guidelines as bankers and lenders, nevertheless they still use a system. Improving your credit score can help reduce higher premiums.

• Shopping around for the best prices, before renewing your policy can save you hundreds of dollars per day. You don’t have to renew your policy with the same insurance company. Chances are if you start searching for cheaper insurance before your policy is up for renewal you might find a better deal. Some insurance companies do not have third party sellers, so they are able to give you the best coverage at the lowest rates.

• Beware of the fact that your insurance company can cancel your coverage at any time. They usually send out cancellation notices if you have made too many claim reports or have gotten too many tickets. There are other reasons why your company can cancel or choose not to renew their insurance policy.

• The majority of insurance companies will offer you a discount, if you choose to pay your premiums annually. Paying the entire premium in full at the time of purchase saves on monthly transaction fees and it eliminates monthly interest rates your carrier may charge.

Knowing how insurance companies work can save consumers a lot of money. It is always best to shop around at least 3 months before the policy renewal date for the cheapest car insurance quotes. Some insurance companies are cheaper on their down payments and higher with their premiums; just as some companies are lower with their premiums but charge a higher down payment. The ultimate decision of which insurance company to choose is up to the driver.