Insurance is something you should not compromise on. But, it is also something you should not pay more for. We’ll help you understand why insurance premiums increase and decrease and help you figure out how you can save money without compromising your coverage. We’ll also share tips on how to shop for the best insurance prices. Let’s start.

Coverage

First, begin by working out what kind of coverage you need. Look at your state’s minimum insurance requirements. The basic coverage they need is usually liability insurance. Make sure you understand what that means. It’ll help decide what policy limits to choose. The minimum stated limit is only a guideline; ideally, take a higher limit that’s at least equal to all your assets. You may also want additional coverage like comprehensive and collision. Consider these costs and their deductibles. The more you choose as a deductible, the lower your premium will be.

Insurers

Take some time and research which insurance company you’d like to go with. Choose according to reports of their financial strength. Also, check if and how they will use your credit score to work out your premium. Make sure you research several companies.

Call

Once you have a list of insurance companies, start calling and asking for quotes. Keep information, including your driver’s license, any claim details, and driving history, with you. Your current insurance company may also give you a letter for claims experience if needed. Remember to ask for the following discounts too: low mileage, winter storage, professional or university degree, occupational or association discounts, good driver, telematics, green car, anti-theft and safety devices, retiree, and student.

Study

Spend some time understanding how auto insurance policies work. More than that, understand how they will work for you. Search for information online to ensure you know what you’re paying for. Additionally, check out the “Frequently Asked Sections” of insurance company websites.

Claims

In case you ever need it, learn the claim filing process before you’re ever in an accident. Look up the FAQs online, so your process during this stressful time is smooth. Also, check whether the insurance company covers aftermarket parts.