The advent of the internet has increased competition levels among car insurance companies.
Since people can now sit at home in their pyjamas and comfortably compare the best car insurance rates and coverages, auto insurance1 firms are now more than ever under pressure to offer competitive deals.
With the number of car insurance quotes online, you might, however, get confused on how to get the best deal.
Lucky for you though, here’s a comprehensive guide to help you save time, save money, and find the best car insurance quotes for your unique needs.
How to Get the Best Car Insurance Premiums
No one wants to spend a fortune on car insurance, but it isn’t always obvious how to get the best insurance premium2 rates.
Hundreds of insurance firms today, both small and established are vying for your business. Most have an eye-glazing assortment of policy choices and incredible premium deals, thus making it daunting to find the one that best suits your needs for a cheaper rate.
Well, here are five steps you need to take to ensure you get the best car insurance premium rates.
#01. Review Your Existing Policy and Assess Coverage
As you look through some of the car insurance quotes online, you first have to figure out the type of coverage that’s right for you.
If you’re looking to get a new policy to add on to your old one, you need to ensure that you meet your state’s minimum liability car insurance requirements.
If you just bought a car and are looking to find the cheapest car insurance possible you need to understand the type of policy you need and which one would be the most suitable for you.
The four primary forms of car insurance policies3 are:
- Liability car insurance – It safeguards others’ property damage and medical expenses
- Uninsured motorist coverage4– it covers the damages to your car if another driver causes an accident but doesn’t have insurance. If you suffer severe damage to your vehicle in an accident caused by an insured driver, you’ll have to cater for the repairs of the car if you don’t have this policy
- Underinsured motorist coverage – it provides you with financial protection for damages over what your standard insurance policy covers.
- Collision coverage – it helps cater to the expenses over the damage to your car in case of an accident. It only pays out up to the actual cash value of your car
- Comprehensive insurance – it covers the risk of theft or damage to your car due to natural causes like hailstorms, floods, fire, and vandalism. Like collision coverage, the policy pays out up to the amount the insurance firm values your vehicle.
You also to decide on the deductibles5 that make sense to your situation. One of the most reliable ways to save on car insurance is by raising your deductibles for collision and comprehensive insurance policies.
However, you need to keep in mind that if you have a claim, the deductible will be your out-of-pocket expense when repairing or replacing your vehicle. Thus, you need to ensure that you choose an amount that you can pay from savings.
#02. Gather Your Personal Information
When you know the type of policy you need, you then have to gather the following information to help you in requesting for a car insurance quote.
- Your name
- Driver license number
- Make and model of your vehicle
- Your vehicle’s colour
- Driving history, including accidents and driving violations
Tip: When comparing car insurance premium rates online, you need to ensure that you compare the quotes side by side. It saves you from having to give out the same information repeatedly and having to write down the quotes on your own.
#03. Compare Car Insurance Premium Rates from Various Firms
After you’ve gathered the information, now you can start collecting car insurance quotes online.
To do this, and to ensure that you get the best quotes and affordable insurance premiums, make sure that you request rates from more than five insurance firms.
You should also remember to compare the same coverage by using the same liability limits, deductibles and optional coverages.
You should also ensure that you follow up with potential auto insurance companies about any car insurance discount you might qualify for.
Motor insurance discounts mean that you’ll get lower insurance rates. There are discounts for those who:
- Bundle auto insurance with other policies like homeowner’s insurance
- Insure several cars with one policy
- If you’re a student, you could get a good student discount
- Have a clean driving record
- Settle their annual or six-month premiums at once
- Possess a vehicle with specific anti-theft and safety features. You might also get if you’re installed a telematics device
#04. Research Car Insurance Companies Before Purchasing A Policy
After doing all the necessary steps now, you can purchase a policy with the best premium rates.
However, you need to ensure that you conduct some due diligence on the insurance firms that offered you the most favourable insurance rates.
According to the National Association of Insurance Commissioners (NAIC)6, when you compare car insurance quotes, ensure that you:
- Check with an insurance rating service, to find a grade or rating for the specific firm and reliable analysis of its finances so you can feel confident that they can quickly settle a potential insurance claim
- Check to see if there any complaints regarding the firm
- Peruse through some customer reviews and feedback on the insurer’s Facebook and Twitter accounts
After you’re sure about the insurance firm, then you can contact them and start the process.
Who Has the Cheapest Car Insurance?
According to the 2020 lists of the top ten cheapest cars to insure, the Honda Odyssey is consistently ranked as the least costly to insure, closely followed by Jeep Wrangler, and the Honda CR-V.
When it comes to specific vehicles, the smaller cars like Toyota Prius and Nissan Versa tend to offer you cheap car insurance rates.
How Does One Compare Car Insurance Policies?
There are various steps you need to take to compare auto insurance policies to find the best value for the coverage you need.
These steps include:
- You first have to get an idea of what you can expect to pay
- You have to review your current policy and assess coverage carefully
- Gather your personal information including your driving record
- Start comparing some car insurance quotes from a variety of auto insurance firms. Ensure that you also follow up with potential insurers about any car insurance discounts you might qualify for
- Make sure that you research potential motor insurance companies before buying the policy you need – check if there are any complaints regarding the firm and check with an auto insurance rating service to see the firm’s popularity and ratings
How Should You Shop Online for Car Insurance?
Well, there are several steps that you need to take, which include:
- Finding a reliable and reputable source for car insurance online
- Drawing a substantial budget so that you don’t go overboard only to get expensive insurance premiums
- Ensuring that you do your due diligence before committing to a specific provider
- Deciding on the type of coverages that will best suit your requirements
- Ordering your driving record – it can be critical in your finding cheap car insurance premiums
- Shopping for auto insurance policies
- Researching the best motor insurance firms
- Picking the best carrier based on your research and enjoy going on those road trips without worrying about coverage
What Does Auto Insurance Quote Mean?
Car insurance quotes are the estimated amount your motor insurance will cost you and what goes into that amount.
The quotes factor in various variables like how much coverage you need, your driving history, age, vehicle brand, and driving activities.
According to statistics, out of ten million motorists on South African roads, 65% are uninsured, even today, many people choose to drive uninsured over picking a cheap car insurance policy.
So, to avoid financial risks, you need to ensure that you have peace of mind by getting the best car insurance policies. It’s also a good idea to learn how to take pictures for insurance companies.
As the experts say, it’s better to be safe than sorry. So, ensure that you look through some of the best car insurance quotes and get the policy with favourable rates today and you save and also enjoy your time coasting through the Johannesburg and Cape Town roads!