When it comes to buying car insurance people have no idea what they are buying and what they should be buying. Do you know what your car insurance really covers? When was the last time you went out shopping for car insurance. We all just assume that we are getting the best price for our coverage, WRONG. Here is what I do and what you should probably do.
(1) be a safe driver and slow down on the road, avoid tickets. When you do get trapped in one of those traps and get a speeding ticket always always always fight it, PLEA-NON Guilty. Remember this is how cities, counties, and municipalities make money (and taxes of course). This will avoid those costly points on your driving record. If the choice is to pay a heavier fine for fewer points do it.
(2) shop till you drop for car insurance. You should be shopping for car insurance every 1-2 years, I do. Call around and get a few quotes. One thing to watch out for, make sure the insurance company is running a “soft hit” when they check your credit and not a “hard hit”. Even better if you already know your score let the insurance agent run with that and they will give you an estimate (which is what it always ends up being anyway).
(3) Know what you are buying. There are certain formulas I use to see what type of coverage I actually need. Insurance sales people are “sales people” and they love to up-sale. If you have a 10 year old car that is worth say $5,000 you probably do not need comprehensive and collision. What it covers is if you are at fault or an uninsured smuck hits you, you are covered. If someone hits you, their insurance will have to pay you. In this scenario all you really need is to be a safe driver and “liability insurance”, incase you hit someone else.
(4) Combine coverage car, home/renters, life, etc.
(5) Negotiate the final numbers. Play other insurance company against each other for the best rate, it can work.
Last year I switched from Liberty Mutual to NationWide and “I saved a bunch of money on my insurance”.