If your vehicle has been considered a total loss in a car insurance claim, there are several steps you can take to keep your car insurance rates from skyrocketing out of control. Here are some factors worth considering if you’re currently dealing with a total loss or are looking for lower car insurance rates. A bad accident doesn’t have to mean the end of low car insurance rates for you.
First, shop for new car insurance by comparing car insurance rates from various companies. Use online car insurance quotes to compare rates for identical coverage. Ask for the same coverage each time you apply for a car insurance quote so that you are comparing apples with apples. If the online quote services do not ask about your driving record, then pick the companies with the lowest rates and call them directly for a car insurance quote based on your specific circumstances.
When shopping for a replacement car, get car insurance quotes on the cars you are considering before you buy them. You may be surprised to find once your new insurance rates are factored in, a sports car or fast SUV may be outrageously expensive. Find out which vehicles have the lowest insurance rates and make your purchasing decision wisely. Protect your driving record. If your car was totaled simply because it would cost too much to replace a few parts, make sure the insurance companies are not adding unnecessary driving penalties for your car insurance claim. Look for ways to augment your car insurance discounts. If you are still a college student, you may qualify for a good student discount. If your parents are willing to add you to their auto insurance policy, the multi-car discount may partially offset the rate increase generated by your car insurance claim. If you own a home or have a renter’s insurance policy, consider pooling your business with the same insurance company for a multiple-policy discount.
Another option is to apply for car insurance that offers low-mileage discounts based on your commuting distance to work and/or annual mileage. If you can carpool to work or school, or ride a bike or other alternative transportation, you may be able to achieve a significant savings on car insurance rates. Some states are now offering a “pay as you drive” program, or PAYD. A device in your car tracks your actual mileage and the dates and times that you travel. If you limit your mileage and avoid driving during high-risk times like late at night, you will be able to save money on car insurance rates and possibly upgrade your driver safety rating. Some savings can be as deep as 25% on car insurance rates.
