If you have listened to the commercials for auto insurance, you would think that saving money on your car insurance is easy. It seems that every company says they can save you hundreds of dollars a year on your car insurance if you just switch to their company. Most people realize that not every company is going to be able to save more money than the others. The reality is that most insurance companies will charge similar rates for people to insure their cars. If switching companies is not the way to save money on your car insurance, then what can you do? The key to keeping the costs of your car insurance down is to understand how it works.

Required Insurance

Every state requires that the driver of a car have insurance. The only insurance that is required is a liability. The exact amounts of liability insurance that a driver must have will vary from state to state. The higher the amount you have to have, the higher you will pay. If you know what the minimum is in your state, you can purchase that much insurance. The insurance companies might try to sell you higher amounts, but you don’t have to get it and that will save you money.

If you are making payments on a car, you will have to have comprehensive insurance as well. Liability insurance pays for any damage that you do to someone or something else. Comprehensive coverage will pay for the fix the damage to your vehicle. As cars get older the need for comprehensive insurance decreases and you could save money by dropping this coverage.

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The Type of Car Matters

Different cars will be charged different rates. When you are considering buying a car contact your insurance company to find out how much the insurance on that vehicle will be. Luxury and expensive sports cars are expensive to insure because they are more expensive to repair and more likely to be stolen. Cheaper cars that are often bought by younger drivers are not cheap to insure either. The insurance industry thinks that the people who drive these entry level vehicles are riskier. Cars that are driven by the soccer moms of the world are often cheaper to insure because of the type of person who drives them and the fact that they are less likely to be stolen.

Know Your Credit Score

Most people are not aware of how insurance companies came up with this idea, but people who have poor credit have to pay more for their car insurance. If you do not know your credit score, find out what it is. There are many easy ways to improve your score in a short time and this can help you save a lot of money on your car insurance.

Pay for the way You Drive

There are devices that can be attached to your car that will monitor how you drive.  It will keep track of many things including the amount you drive, how fast you drive and other things that can show you are a safe driver. This will allow you to pay a rate based on your actual driving habits which may save you money.

If you really want to save money on your car insurance, don’t call a bunch of companies to see who has the best rate. Learn about how car insurance really works and figure out what you need. Pay for the insurance you need and not the insurance that the company wants to sell you.

 

Author Bio:

Dylan is an insurance professional who is writing articles on insurance and related topics. In this article he has discussed some necessary things that would help save money in car insurance. He suggests his readers to visit cheapcarinsurance.co.za for further information.