The gecko

You have seen them too. The commercials that promise that you can save hundreds of dollars by switching your car insurance. If it was true, wouldn’t people be switching all the time?

It is probably true that most people have probably stayed with the same auto insurance company since they purchased their first vehicle. Even through the years when they needed to update their policy, they just let their insurance company know they had a new model vehicle or added another driver to the policy.

And is probably also true that most of us are a bit lazy when it comes to looking for the best deal. Even if you are perfectly satisfied with your current insurer, it’s possible that you can find a low cost auto insurance company and reduce your current rates.

Several sites offer this service online. You can also contact an independent insurance agent and have them quote you with multiple companies. Insurers will gladly provide quotes to as many people as possible. The other side of this is, of course, that they can hand pick the drivers they actually want to insure.

Insurance companies change their rates all the time. And for the past several years, many insurers have been reducing their car insurance rates for the good drivers, the ones with good credit and insurance scores, and with a clean driving record. Many low cost auto insurance companies offer a discount to policyholders who haven’t made a claim in the last couple of years.

First thing to do:

If you already have an insurance, make sure you know what your policy covers and what your deductibles are. The more information that you have, the better prepared you will be to check if you get a good quote or not.

Check your credit report:

Yes, your credit will affect how much you pay in car insurance. Insurance companies in most states consider you a greater risk with a bad credit report. Get a copy and check for errors. This is an easy way to make sure that you do not overpay for your car insurance.

Get yourself a good vehicle:

A good and safe car will automatically lower your quote.

Consider your deductible:

The deductible is what you have to pay out of your own pocket before the insurance company will pay anything. If you get into an accident with $2,000 worth of damage and your deductible is $1,000, you would pay $1,000 and the auto insurance company would pay the other $1,000.

The higher deductible, the lower the cost for your insurance. But make sure you have your deductible available in the bank and that you can spare that money in case of an accident. Remember, accidents often happens when you least expect them.

Know your mileage:

If the mileage you drive your vehicle is lower than the average, you will probably qualify for a discount.

Demographics matter:

If you live in a high crime area or a location where there are many accidents or thefts, it will matter. Keep this in mind when you ask for a quote.

The result?

Sit down and look at the quotes. All of this probably took you more than 15 minutes. But maybe you got lucky. Maybe you got a better insurance for less..? Then we congratulate.