Affordable Car Insurance Policies Explained
Unlike other industries, the car insurance industry has the largest variations in product prices for a certain set of data provided to derive a quote. Meaning, even if you give the exact same information to 10 different car insurance companies, you will get prices that are wildly different. Sometimes to the differences can be as much as 50% from the most expensive to the most affordable car insurance.
The pricing of car insurance products should be based on the amount of risk that the insurance companies have to take up in offering an insurance policy to you. It therefore is a bit strange that the variance in prices can be so large between companies. This only goes to show the huge profit margins that insurance companies make on their products. It is because of this that we always recommend that clients be on the look out for car insurance policies that are affordable but still offer the level of coverage that they are comfortable with.
If you are looking for car insurance that you can afford quite easily, you have to be sure what type that you want. There are generally 3 ways in which a policy can be made affordable. The first and most obvious would be a reduction in the coverage thus an associated reduction in premiums as well. This can come in the form of reducing your comprehensive car insurance coverage to something of a mix between a 3rd party insurance policy mix or by reducing coverage for things that are quite unlikely to happen (e.g. ice-over coverage etc.). You can get this option from almost all car insurance providers and the prices for a reduced cover policy are quite similar, certainly nowhere as varying as a full coverage policy.
Another way to get your car insurance more affordable is to look out for budget or low priced car insurance companies. Because of the way in which these companies operate, it can be quite hard to find them as they have a very limited advertising budget. They are normally those small operations that are located in suburbs and only promote themselves in cheap advertising mediums like local community newspapers or even the bulletin boards in local shopping malls. Some of them also have internet portals such as 2Insure4Less.com.
- Slower quote system;
- Very competitive rates;
- Less choices of coverage
- Reliable pay-out.
The third way that you can get your car insurance policy more affordable is to look out for seasonal bargains that come car insurance companies give out on a yearly basis. Most of the time the bargains start coming in around the tax season so that they can pump up the books a bit with advertising and discount liabilities to the company to lower their taxes. Some of the time you can get a full level coverage policy at just a fraction of the price that you would normally pay.
Obtaining affordable car insurance isn’t hard. If anything it takes time as you shop around or wait for that opportune moment to get a quote. Generally, the best way to approach this is to get a list of all the companies that you want to get a quote from and slowly obtain quotes over the course of a few days. This should be enough time so you don’t get over-run by calls and also leave yourself enough time to do other things. Remember, the more quotes that you get, the better the chances are that you will get one that is very cheap.