Auto Insurance: Cutting costs, not corners

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Lauren Thomas, Negosentro | Nobody wants to spend more than they have to on auto insurance. In this day and age, the lowest monthly premium price is the grounds upon which many consumers choose an insurance provider. But at the end of the day, is this really the best strategy?

Studies show that the average driver will have to make a collision claim once every 18 years (about three times in their lives). For many of us, that means three major hikes in our insurance rates, which can impact monthly premiums to cost you far more in the long run. As it turns out, one of the most important things you can do to avoid being hosed by additional costs in the event of a collision is to choose a truly comprehensive policy. Above all, don’t cut corners by opting out of additional liability coverage, which can cost you hundreds in an accident that isn’t even your fault.

The team at Reviews.com recently released a guide to auto insurance that also suggests these tips for keeping rates as low as possible:

Shop around. It’s easy to get comfortable with your auto insurer — in fact they encourage it by offering small discounts for loyalty and the longevity of your policy. But one great way to keep your premiums down is by shopping around on a regular basis. This will ensure that you don’t miss out on a better insurance rate from a different company.Additionally, many auto insurers take part in price optimization, a strategy that utilizes consumer shopping information from your internet searches and uses it to determine how likely you are to switch providers. If your insurer thinks you’re at a high likelihood of staying, they may gamble to raise your rates in order to make the most money they can off of you. By comparing policies and rates online, you can work to make your browsing history reflect that they need to keep their rates low to retain you as a customer.

Stay safe. This is one of the most obvious, yet least-utilized strategies for keeping your insurance rates low. Regular everyday people can’t predict when they’ll get in an accident, so every time they engage in risky driving behaviors they put themselves at risk. By minimizing the amount of risky driving behavior you do, you minimize the opportunities to get in a collision (at least one where you’re at fault). You can start out by staying off the phone while in the car and abiding by typical rules of the road. Check out this article for additional safe driving tips.

Fix it yourself. Sometimes having an auto insurance policy can seem like a great way to get all of the little scratches and cosmetic damage on your car fixed while paying little out of pocket. But remember that insurers make the most money when they can hike up your policy premiums (i.e. right after you make a claim). To avoid these increases, take care of smaller car fixes yourself. Issues like broken side mirrors can be very easy to fix, and you’ll likely be able to them yourself faster than it would take an auto repair shop.

At the end of the day, auto insurance is an absolute necessity for all drivers. Be sure you have the right coverage to keep you and your loved ones safe in the event of an accident. For more information on keeping your rates low, check out the original article from Reviews.com here: https://www.reviews.com/auto-insurance/