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| How to Reduce your Auto Insurance Premium |
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| March 11, 12:12 am |
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| How to Lower your Auto Insurance Rates?Shopping for low car insurance rates is the only way to save money on auto insurance.Auto insurance varies by town, city, zip code and state. To find the lowest rate quote on auto insurance, it pays to know your insurance coverages when requesting a quote. If you are currently insured, your auto insurance policy's declarations page contains all of the necessary coverage information required to request a quote. If you want to reduce the amount you pay for auto insurance, the simplest way is to shop around. Seems simple right? but you would be surprised by how many people overlook this and continue to pay high prices. Prices vary from company to company, so it pays to shop around. A great way to ensure you get a good deal is to complete insurance quote applications at multiple sites. You spend 5 minutes a piece filling out their quote application form, and within a few days you'll have a number of great quotes to consider. But don't shop by price alone. You want a company that answers your questions and handles claims fairly and efficiently. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they make available consumer complaint ratios by company. Before you buy a car, compare insurance costs.Before you buy a new or used car, check into insurance costs. Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include air bags, anti lock brakes, daytime running lights and anti theft devices. Some states require insurers to give discounts for cars equipped with air bags or anti lock brakes. Cars that are favorite targets for thieves cost more to insure.Following are some of the ways you can reduce insurance premiums Higher deductibles.Deductibles represent the amount of money you pay before your insurance policy kicks in. by requesting higher deductibles, you can lower your costs substantially.Reduce coverage on older cars.Sometimes it’s just not worth paying for these kinds of insurance, if your car is not worth that much to begin with. That’s because the amount you pay for the deductible plus the amount you pay for the insurance may not be more than the value of the car itself. An auto dealer or certain automotive magazines can help you determine the value of your auto.Buy a "lower profile" vehicle.Part of what determines the cost of insurance is the kind of vehicle you drive. Some are favorites for thieves. Some are more expensive to repair. Generally these vehicles will cost more to insure. It pays to do your research before you buy. If you're in your early 20's, with a few speeding tickets, and live in a large metropolitan city then you'll probably pay a higher average auto insurance premium regardless of automobile type.Buy your homeowners and auto coverage from the same insurer.Most insurers offer discounts to customers who combine their home and auto policies. Also you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long time customers. But shop around; you may save money buying from different insurance companies despite the multi policy discount.Defensive Driving course.Most insurance companies offer up to 10% off for drivers who volunteer to take a state approved defensive driving course. But before you sign up, check with your insurer. In some states, the discount applies only to drivers over certain age.Take advantage of low mileage discounts.Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who carpool vanpool or take mass transit instead of driving alone to work. It is not a "rideshare discount." Rather, it's simply a matter of mathematics: The less you drive, the less you should be paying for your insurance.Seek out safe driver discounts.Some Insurance Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also qualify for a cut if you have recently taken a defensive driving course.Location.Where you live plays a big part in how high or low your auto insurance premiums will be. Large metropolitan areas tend to have the highest premiums due to theft, the number of uninsured drivers on the road, traffic and more. Rural areas which do not typically have these problems will offer the lowest premiums based on location.Ask about group insurance.Some Insurance companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or other associations. Ask your employer and groups or clubs though which you belong.Inquire about other discounts.You may get a break on your insurance if you are over 50 or in some cases 55 and retired or if there is a young driver on the policy who is a good student, has taken a drivers education course or is at a college, generally at least 100 miles away.One last word, there’s more to this insurance game than saving money. In fact, while it’s nice to lower your insurance costs, it’s probably even more important to make sure you, your loved ones and your assets are covered adequately. It’s not a pleasant thought, but insurance is about worst case scenarios. It’s also about peace of mind knowing that you have the worst case scenarios covered. |
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