As entrepreneurs and business professionals, we are always on the lookout for ways we can get the best deal. Whether you are a start-up novice or a seasoned professional, cutting down on monthly transportation expenses is a much-ignored way to maximize personal savings.
You already spend all day studying the market and finding the best ways your business can earn money. Why not apply some of those techniques to your search for car insurance? Check out these five tips. With these tools, you can go ahead and buy an insurance plan as a confident and informed consumer.
Understand Your Risk Profile
Insurance companies take a lot of factors into consideration when determining your risk profile. Your perceived level of risk determines how much you are going to have to pay for insurance each month. It is smart to have a general understanding of where you fit on the scale.
The insurance companies are going to take five significant indicators to assess what level of risk you pose to them as a client. When identifying your risk level for your own research purposes, answer these five questions:
How does your driving record look?
Have you been in many fender-benders? Do you have a lot of speeding tickets? The more you have in your history; the higher your premiums will be.
How long is your daily commute?
The more time you are on the road, the higher your risk.
What car do you drive?
A highly secure sedan or a fast and expensive sports car? The more expensive the mechanical repairs will be, the higher the premiums.
What’s your age again?
Studies show that drivers under 25 and over 65 are more likely to be in accidents.
How is your credit score?
Insurance companies will use your score to determine the financial risks that you present to them as a client.
Consider Buying a Practical Car
We know that you want that fancy all-black sports car, but going for something like an SUV may save you a lot of money on car insurance. Vehicles that have costly repair and maintenance expenses will drive up your premium.
Before buying a car, consider the price of the insurance.
Do Your Research
When you are looking for an adequate car insurance policy, get quotes from multiple companies. Insurance research is one of the most financially rewarding comparison shopping activities that you can do.
Some people tend to stay with a familiar company; perhaps their family has always had the same policy. It is better to branch out and see what other companies have to offer. You will be pleasantly surprised to see how much premiums can vary. Many online tools can help you compare quotes and find the best deal.
Keep an Eye on Your Credit
Some US states have made it illegal to consider someone’s credit score to decide insurance premiums, but many insurance companies will still look at it. To get a lower premium, focus first on improving your credit score.
Claim Discounts
That’s right. You can claim some substantial discounts for your auto insurance. Many car insurance companies reward discounts for safe driving and minimal claims. Other specials include a homeowner discount, a good student discount (when you’re studying for that MBA), a financial stability discount, a multi-car discount, and a multi-policy discount.
The Verdict
Shopping for car insurance does not have to be stressful. As a business professional, navigating rates and coverage will be a breeze. The best way to save money is to get involved in the process, and feeling confident in your understanding of the industry. There are plenty of tools available to help your research, and with these five tips, you are guaranteed to find the best plan for you.
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Interesting related articles:
- “What is Insurance?“
- “What is My Credit Score?”