5 Tips for to Get Best Car Insurance Deals

There are dozens of car insurance companies competing for your attention. They all want to sell you auto insurance but very few of them are concerned about making sure you get the best car insurance deals possible. Your job is to collect quotes, compare them, and make sure you understand the differences. There are, however, a few things the auto insurance carriers won't tell you about the way they price your policies. Here are 5 tips to keep in mind as you search for new car insurance.

5. Repair Your Credit

Some carriers use your credit score to determine how much premium they will charge you. The better your credit, the lower your premium. Using credit to determine premium amounts is a relatively new practice so not all carriers do it and the ones who do won't always make it clear. Make sure your credit is in good repair and you'll likely get the best car insurance deals available.

4. Paying in Full Can Save You Money

If you've been saving for a new car or insurance policy you may have enough to pay your car insurance policy in full. If so, you may earn a significant discount for paying the policy in full at the beginning of the year. Some carriers charge installment fees for breaking up your payments, causing you to pay more money than you were actually quoted.

3. Tone Down Your Driving Habits

Most insurance carriers will increase your policy premium if you have an at-fault accident. They usually take the base rate (the rate they charge for liability coverage before discounts or surcharges) and increase that rate by 40%. Some insurance carriers simply raise your total rate after discounts and surcharges by 40%. Either way, 40% is a huge chunk of change so if you want to always receive the best car insurance deals you'll want to make sure you have a great driving record.

2. Make Sure You Know the Value of Your Car

Check the Kelley Blue Book to determine the value of your car before you purchase insurance. If your car is worth $1,000 you won't want to waste your money on comprehensive and collision coverage. If it's worth $20,000 and you have a loan you'll want both comprehensive and collision coverage as well as gap coverage to cover the difference between the value of your car and the amount you owe.

1.Don't Add an Unlicensed Teen to Your Policy

Some people would have you believe that you must add a teenager of driving age to your policy just because he's reached the driving age. Nothing could be further from the truth. Your rates will skyrocket if you add a teenage driver to your policy so there is no reason to waste your money adding a driver who can't actually drive. You don't need to add your teenager until he gets a license.