Tips For Getting The Best Auto Insurance Rate Possible
Tips For Getting The Best Auto Insurance Rate Possible
If you are like most automobile owners, you have
probably shopped for auto insurance at least once in your lifetime. And like
most of those people, you may have wondered whether there was really anything
that you can do to lower the price of your insurance. Well, the good news for
you is that there are certain steps you can take to lower your auto insurance
premium. Some of the information provided in this article may seem obvious or
be viewed as common knowledge by some people, but we hope that you are able to
take away at least a couple pieces of information that will help you lower your
annual auto insurance premium. If you can, then we have accomplished our goal!
Auto insurance companies generally take into account
several factors when determining your rate, such as driving record,
geographical location, vehicle model, coverage limits, vehicle safety
features/anti-theft devices, operator discounts, prior insurance, and age. (And
in some states and with some companies--sex, marital status, where the vehicle
is kept at night, and credit score are also factors) While many of these
factors are difficult, if not impossible, to change, there are still some
relatively simply steps you can take to save money.
The 11 steps you can take to lower your auto insurance
premium are:
(Note: we have tried to list the steps from the most
obvious to the least obvious)
1.) Needless to say, try to avoid being involved in
accidents or receiving moving violations by driving defensively and obeying all
traffic laws--This is by far the most important way to reduce your auto
insurance premium (plus it is safe and smart!).
2.) If you already own a registered vehicle, make sure
to keep your insurance current, without a lapse in coverage, since many
insurance companies provide much better rates to individuals who already have
current insurance and have an established history of insurance coverage. Note:
If you have had a lapse in insurance on a registered vehicle, we recommend
getting insurance coverage as soon as possible and THEN do more shopping for
better rates. Since you will have re-established your insurance, you will now
be (PRESTO!) an insured motorist and most likely able to secure a better
insurance rate immediately with another company.
3.) If you have an anti-theft device on your vehicle,
make sure to let your insurance company know about it. If you do not have an
anti-theft device already installed, consider adding one if you have
comprehensive coverage on your vehicle. Insurance companies generally offer
discounts for anti-theft devices from 5% to 20%, or more, of your comprehensive
coverage premium, depending on the type of anti-theft device. Vehicle recovery
devices (e.g., Lo-Jack or On-Star) generally provide the biggest discount, with
automatic anti-theft devices (i.e., those that arm themselves) probably being
second on the list, and passive anti-theft devices (i.e., those that you must
arm) and window glass etching or ignition shut-off mechanisms probably
providing less of a discount. Of course, before installing an anti-theft device
you will probably want to compare the savings you will receive by adding it to
the total cost of installation. Depending on the cost of installation, it may
not be cost-effective to install it.
4.) Check with your insurer to find out whether they
offer discounts for attending a defensive driving course. These courses may
normally be taken by drivers of all ages. Discounts vary by state and from
company to company, but by paying a small fee and spending a few hours of your
time for a defensive driving course, you may be able to save yourself
approximately 5% to 10% or 15% of your TOTAL insurance premium. Note: If you
are over age 55, ask about a special "Mature Driving Course" or
"55-Alive Driving Course" discount. Also, if there are multiple
drivers on your policy, ask whether you can receive a larger discount if all of
you take the course--some companies will offer larger discounts, some won't,
but if you ask, you can at least decide which driver/s on your policy should
take the course to maximize your discount.
5.) For youthful operators (generally considered to be
drivers under the age of 25), make sure you ask the insurer what discounts they
may be eligible for. This may seem obvious, but it is amazing how many people
miss out on significant savings because they forget to ask about specific
discounts for younger drivers. Driver's Ed or Driver's Training and Good
Student discounts are the most common types of discounts for youthful
operators, but always ask if other discounts may apply.
6.) Always notify your insurance company when you have
changes that may be beneficial to you. For instance, if you were single and are
now married, make sure to let the insurer know. If you used to commute a far
distance to work, but now have a shorter commute or work out of your home or
are retired, you will most likely be eligible for a lower rate. If you used to
park your car in your driveway or on the street and now park it in an enclosed
or covered garage or shed, you may get a lower rate. As a basic rule of thumb,
if it seems to you that you are less of a risk due to some change in your life,
chances are your insurance company will think the same thing and give you a
lower rate.
7.) Check rates for higher Bodily Injury (BI) limits.
That's right, HIGHER limits! Believe it or not, it may be substantially cheaper
for you to have limits for BI coverage of 50/100 or 100/300 than it is to have
the state minimum coverage. One of the reasons for this odd phenomenon is that
insurance companies consider you to be less of a risk if you are the type of
individual who would be conscientious enough to have higher limits of BI
coverage. Insurance companies have shown statistically that drivers who have
higher BI limits are, overall, better risks and less likely to be involved in
accidents or losses. Therefore, you can insert yourself into this group of
drivers that is viewed more favorably by your company by carrying higher BI
limits. Note: If you currently carry lower BI limits, your insurance company
may not immediately rate for the change--you may have to wait until the next
renewal to see a price change, or, in some cases, you may have to increase your
BI limits and then shop for other insurance so that companies give you
"credit" for your higher limits.
8.) Consider taking full coverage off of that older
vehicle that is paid for. Many, many people carry full coverage on an
older-model vehicle they own that may only be worth a couple thousand dollars.
Even if they have a total loss of their vehicle, they may only receive a small
amount of money for their vehicle after the deductible is taken into account.
Yet, they may be paying several hundreds of dollars extra every year for full
coverage. To save money, compare what you would receive for your vehicle if you
had a total loss to what it costs to carry full coverage, and then make an
educated decision. Note: Taking full coverage off of an older vehicle probably
makes the most sense when the drivers of the vehicle have a good driving
record, since they are even less likely than the average person to have an
accident and file a claim.
9.) If your credit score has recently improved,
contact your insurance company to find out whether they will re-run your credit
score to possibly give you a lower rate. Most auto insurance companies now use
credit in one form or another to accurately rate a policy. Whatever your
personal opinion is of this practice, it is the standard method of operation
for most auto insurance companies. (Note: There are states that have made laws
against use of credit for auto insurance rating purposes. In these states, this
step will not help you.) Because your credit score is a MAJOR factor with some
companies, an improvement in your credit may save you a LOT of money, but only
if you request that they re-check it).
10.) Check on how much it would cost to add
comprehensive coverage, collision coverage, or both to your vehicle.
Surprisingly, some companies actually offer lower rates if you have
comprehensive, collision, or both, than they do for liability-only policies.
This is definitely counter-intuitve, but it is based on the same principle
mentioned above regarding higher BI limits--the insurance company may view you
more favorably (as far as risk is concerned) if you are an individual who would
at least carry more than the basic coverage on your automobile. So, when you
shop for quotes on a vehicle, you may want to check what the difference in
price would be between liaiblity coverage, liability plus comprehensive
coverage, and liability plus comprehensive and collision coverage.
11.) Lastly, periodically contact your insurance
company to see whether they may be able to place you with one of their
underwriting companies that is designed for "better" drivers
("better" according to your insurer's rating factors--they are not
judging your "goodness" or "character" for this!).
Normally, insurance companies (particularly the larger companies) have multiple
underwriting companies (subsidiary companies) that specialize in underwriting
different categories of drivers based on the company's risk assessment of you.
If you are not in the insurer's "best" underwriting company (reserved
for their "best" risks), you always have room for improvement with
that company, and by simply asking to be considered to be placed in one of the
underwriting companies for "better" drivers, you may be able to save
yourself a LOT of money over the years. Note: You may only have a real chance
of being placed in a better underwriting company if your driving record has
improved dramatically over the last couple or several years or if, in the
states where credit may be used, your credit score has improved. Either or both
of these improvements may give you leverage with the insurance company to
request that their underwriters review your policy for placement with a better
underwriting company.
We encourage you to visit our website
www.quotehippo.com to sign up for our Free monthly insurance newsletter and get
your Free quotes on Auto Insurance, Life Insurance, Home Insurance, Health
Insurance, Motorcycle Insurance, and Small Business Insurance. We now also
offer great quotes on Mortgage Loans and Auto Loans. Our slogan is
"Insurance & Loans Made Easy" and that is what we strive for.
Jika Anda menyukai Artikel di blog ini, Silahkan
klik disini untuk berlangganan gratis via email, Anda akan mendapat kiriman artikel setiap ada artikel yang terbit di Auto Insurance
0 comments:
Posting Komentar