Car insurance - it’s complicated, and we all know it. But that doesn’t mean we should bury our heads in the sand and hope that our cover is right for us.
The modern market is actually easier to navigate than in the past, so you just need to make a small amount of effort to take advantage of it.
With that in mind, here are the main points to remember when tackling the thorny issue of insuring your automobile today.
You can quickly and easily compare different car insurance quotes online
Platforms like CheapInsurance are ideal for comparing auto insurance quotes, allowing you to find a bargain in just a few minutes.
All you need to do is enter some personal information into a reputable comparison site, and quotes from a range of competing insurers will be compiled automatically.
Gone are the days when dealing with a broker took an age. All it takes is a laptop or a smartphone, and a small amount of your time.
The value of your vehicle is less important than you’d think
Most people assume that if you’ve got an expensive car, insurance premiums will be pricier than if you’re driving an old jalopy.
The truth is that the monetary value of a vehicle is just one piece of the insurance puzzle. Providers will look at all sorts of statistics to determine what to charge customers, and other elements are given more weight.
For example, choosing a brand new family car which is generally chosen by sensible, safe drivers will mean that insurance premiums are relatively low, since there will be less risk of the provider having to pay out.
On the other hand, going for a cheaper, older vehicle which has more power under the hood, and thus is more commonly chosen by drivers who push their luck, could land you with a costlier insurance package.
Your credit score can influence car insurance costs
Before you get car insurance quotes, you should check your credit score. This is because in most states, insurers are able to use it as a factor when calculating how much to charge customers for car cover.
Once again it’s the stats that are at play here, because data demonstrates people with better credit scores tend to be safer drivers. Your score can be hurt for all sorts of reasons, many of which can easily be rectified, so you could make savings on your car insurance by boosting your credit score.
Insurance policies cover the car, not the driver
Another rule of thumb is that unless your policy states otherwise, it’s the car that’s insured, and not you specifically as a driver.
What this means is that anyone else who uses your vehicle is covered, which can be a double edged sword. Your policy will pay out if they get in an accident, but you’ll be the one who has to face up to the increased premiums as a result.
Older drivers can pay more, not less
It’s true that younger drivers are the hardest hit in terms of auto insurance costs. However, there’s a point which we all reach when cover no longer gets cheaper as we age, but creeps upwards once more.
This is usually only a concern for the over-65s, and so long as you’ve got a clean record and a good driving history behind you, it won’t make much difference. All the same, if you need to plan for increased insurance costs as part of your retirement budget, this is one thing to watch out for.