Is it worth buying the cheapest policy?

When shopping for car insurance or any service in this economy, we all tend to make our initial decisions based on the cost of the service. We gravitate toward the cheapest rates without weighing the value of the service against the cost. The only trouble with this mentality is that what saves money on the frontend will not necessarily offer the most value for the money overall.

How to Choose the Lowest Rates

If you want to get the lowest initial car insurance rate possible while giving keeping yourself and your pocketbook protected in the event of a catastrophe there are three questions to ask. First, what is the reputation of the company you’re considering? Second, what costs are covered in the event of an accident or other unforeseen event? The third question to consider-who does the insurance policy cover?

Don’t Let the Funny Advertisements Fool You

It’s impossible not to be taken in by entertaining commercials with funny animals or the reassuring voices of actors telling you that a particular insurance company “cares”. The trouble is that many insurance policy holders make their insurance decisions based on their favorite gimmick. Take the time to examine the specifics of the policy remembering that no one policy “has it all.” What policy has the best deductible for you and your family? Add-up the fees on the deductible features on your policy before making a final decision about who you will choose.

Know Your Vehicle

Hmm, which policy is best for me?

Hmm, which policy is best for me?

The kind of vehicle you own makes a significant difference in the availability of the insurance rates you are eligible to receive. How old is it? Most insurance companies calculate the value of a vehicle by the age. If you’ve had your car since 1999 and it has over 200,000 miles on it, the rate to insure it will be less than your spouse’s two year old car with 10,000 miles. The lower the value of the vehicle, the lower the rate is to insure it. If your vehicle has a lot of features, ask the insurance agent what kind of discounts you are eligible to receive. While antitheft mechanisms on your vehicle may not in fact deter criminals, most insurance companies give discounts to owners who are “responsible” enough to have them.

The Real Cost of Value

Affordable vehicle insurance policies that are worth holding are out there. Take your time before making the decision about who will hold your policy. Know who is insuring your vehicle, find-out what damages or incidents are covered, and understand how the policy affects you and your loved ones.

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