Let’s face it, the economy has taken a turn for the worse, and no matter when Wall Street analysts predict an economic u-turn, it can’t come soon enough for those of us on Main Street. Consumers tend to think twice before making new purchases in these tough economic times. One thing that savvy consumers should think about shopping for during tough economic times is auto insurance.
Many insiders believe that a recession is one of the best times to shop around for cheap auto insurance. “Insurance brokers are seeing less people walk through their doors looking for insurance, so they’re willing to reduce or eliminate the broker fees that they charge” says Melanie Montgomery, an insurance broker in California. Many have found this to be true, as many large insurance agencies have recently started advertising that they are no longer charging broker fees on new policies. For those of us in need of an insurance policy this could be the best time to start comparing rates from different companies that are offering these types of specials.
Another factor to consider when shopping for cheap car insurance these days is the amount of miles that you drive per year. If you’ve been laid off from work, you aren’t commuting everyday therefore your annual miles that you put on your car have gone down dramatically. If you were heading out to dinner twice a week when times where better, chances are you’re opting to dine in more often than out.
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This also affects the amount of miles driven annually. These are things that should be brought up when shopping for cheap auto insurance, as many companies will charge higher premiums for those who drive more annually than others. To get the lower rates for driving less miles you may have to provide proof that you don’t drive as much as you used to. Some documents that insurance companies accept as proof are service slips from oil changes or pictures of your odometer if you drive a newer model vehicle. Make sure to have these ready when you’re shopping for auto insurance.
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