Do you have many car insurance claims? If yes, you should do all you can to reduce them or even endeavor to file no claims at all. I bring this issue up because you can do something about lowering your auto insurance quote. Because the number of claims yo9u have is the single factor that influences the cost of your insurance premium, you need to clean up your record if possible. Let's say you have 5 years with no claims. Most companies will then give you an unbelievable discount of your premium, some of them even up to 75%! It goes without saying that this is the most powerful way to get less expensive or even cheap insurance.
How can an insurance company do this? Look at an insurance company as a big box of money dropped in by people who gets security in return. What the company does is simply to reallocate the money that is left when the payments for damages are deducted. People that have had a lot of claims, will pay a higher premium and thus get a higher car insurance quoted rate. But a safe driver that avoid claims, is rewarded with a lower one. Fair enough?
If you are new to insurance - or even if you have had insurance for some years, but still feel you lack the knowledge about it. - I would advise you to learn some of the basic auto insurance terminology, before you start to shop around. It can help you not only to get a lower cost insurance policy but also help you to make the correct coverage decisions for your needs. Let's do a little test: Do you need PIP coverage? What does PD coverage mean? What is BI coverage? Also, do not accept the first quote you get. If you ask an insurance company for a quote, you can be almost assured you'll get a better one from at least one other company.
Comprehensive marketing research the recent years has shown that prices for a new six-month policy with comparable coverage can vary greatly between different companies. And we are talking about spreads in rates of at least $500. So shop around...you''ll be glad you did.
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