Who offers the Cheapest Auto Insurance Quotes?
Well, I know its totally surprising to see the upwealthy blog discussing ways to get the cheapest auto insurance in town.
But hey! who doesn’t like savings?
The good news is that if you are in Alabama, the cheapest auto insurance quote there starts from as low as $586 by Nationwide and $717 by ALFA, while Progressive starts from $750 and Statefarm will cost you $877.
But before we get into the rates, it is quite important to understand why some cars get a low rate, while others are charged exhorbitantly.
To determine a vehicle’s risk, auto insurers have to consider several facts like accidents, the cost of repairs, claim history and the regularity of car theft.
Car theft and Auto Insurance Quotes are Related
While common logic states that cars with the lowest cost of repairs should get the lowest auto insurance quotes, this logic does not hold good at all times.
For example, although Honda Accord and Honda Civic has some of the highest safety rating from IIHS, they also happen to be the most stolen cars in the country according to the National Insurance Crime Bureau. Both Honda Accord and Honda Civic are common cars and so for criminals to dispose off in the black market.
Trim level and car insurance rates
While buying a car we all get fooled by the additional features. In fact, it is so irresistable that many people (including me) end up spending more on the features than the actual car.
From the insurance point of view, adding more features to your new car will proportionately increase your insurance rates, too.
If you are driving a car with high-tech safety equipment like a BMW or a Range Rover, which will cost more to repair, the insurer will have to consider that when making your auto insurance quote.
This is also true if you are driving a car with a more powerful engine like a Dodge RAM or Porsche Boxter. The Auto Insurer will assume that you are at a greater risk for speeding and getting in an accident.
The Trick to Getting Lower Car Insurance Rates
If you are looking for a hack to bring your car insurance down by at least $200 per year then just go for a vehicle with a trim level that does not include extras like GPS systems, a power moonroof or a premium audio system.
By just opting for a trim level that is slightly low, you can get a huge savings on your auto insurance quotes.
Car manufacturers typically bundle many upgrades into various trim levels. The trim levels on its own offer great flexibility for the end user but it also hides the insurance levels beneath it.
A slight upgrade in trim level is hardly noticeable on the monthly level but it makes a large difference in your annual auto insurance bills.
For most cars, moving to a higher trim level may mean moving to a higher auto insurance rate as well. This becomes very marked when you are opting for an expensive car.
What do you think?
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