Want to Reduce Your Auto Insurance Costs? Let Me Count the Ways!
Want to Reduce Your Auto Insurance Costs? Let Me Count
the Ways!
We all complain about the mounting cost of automobile
insurance. So what are our options to lower our auto insurance expense? Take a
look at the following list of opportunities to reduce your auto insurance.
1. Plan For And Include Auto Insurance Costs Into The
Cost Of your Auto Purchase
To begin with, buying a car is a significant initial
expense and auto insurance is a sizable subsequent expense in your ongoing cost
of ownership. You should always look into what your insurance costs are going
to be on any vehicle you consider buying.
2. Research Auto Insurance Rates On Different Makes
And Models Before Buying Your Car.
Insurers rate vehicles on a risk scale based on
statistics that cover a range of factors such as exposure to risk of injury or
theft, vandalism, flashy or sporty vehicles, cost, cost to fix, past claims
history, overall safety record, etc. The higher the risk, the higher the
insurance premium. Many insurers offer discounts for low-risk vehicles such as
sedans and station wagons. Check out this information with your state or
provincial insurance agencies before you to decide what car to buy.
3. Research And Get Quotes From Several Insurance
Agencies
Once you have decided on a make and model of car, the
best way to make sure you are getting the most affordable price for your auto
insurance policy is to do your research and compare, quotes. You should obtain
a number of quotes from different insurers as coverage costs from one insurer
to the next can vary by hundreds of dollars, and possibly thousands of dollars.
Get at least three price quotes. Call insurers directly or get online quotes.
Provide the same coverage, deductibles and limitations so you can compare
apples with apples. Nowadays, comparison sites do all the legwork for you and
provide competing rates side-by-side. Visit some of the sites advertised on my
website listed below.
4. Save Money By Raising Your Deductibles
You can reduce your insurance premium considerably by
increasing the deductible on the comprehensive and collision portion of your
insurance policy. However, keep in mind that in the event you have an accident
and file a claim, you will have to pay the deductible out of your own pocket.
So make sure you can afford to do that. You can save 10 percent or more by
increasing your deductible from say $500 to $1,000. If your claim is $2500 and
your deductible is $1,000, you will pay $1,000 and your insurance company will
pay $1500.
5. Save Money By Purchasing Home And Auto Insurance
From the Same Insurer
Purchasing your home and automobile insurance policies
with the same insurer may qualify you for a further discount, which may shave
up to another 10% on both policies. Most insurers offer this saving as an
incentive to get your home insurance business too.
.6 Save Money By Including All Vehicles Under The Same
Policy
Similarly, many insurers offer a multi-auto discounts
for those who insure more than one car on the same policy. You can save up to
10% by placing more than one vehicle under the same policy.
7. Save Money By Maintaining A Good Driving Record
Your driving record is a significant factor in
determining your insurance rate. If you have a clean driving record (without
accidents, traffic tickets, drunk driving convictions, etc.,) you may be eligible
for further discounts on your auto insurance policy. A bad driving record can
become very costly in terms of insurance premiums, as you may take three years
or more to wipe out past misdemeanors off your record.
8. Save Money By Maintaining A Good Credit Record
Insurers are increasingly using credit information to
price auto insurance policies. Developing and maintaining a solid credit
history can reduce your insurance costs. To protect your credit status, pay
your debts on time, don't get more credit than you need and keep your debt
balances as low as possible. Review your credit record often and ensure your
record remains accurate by getting errors corrected promptly.
9. Save By Asking For Low Mileage Discounts
If you are retired, semi-retired, car-pool or use
public transportation to go to work, and generally keep your annual car mileage
as low as possible you may be eligible for a low-mileage discount. The low
mileage limit is generally around 10k-12k miles per year depending on the state
or province you live in.
10. Research Other Discounts
Other discounts may be available if you meet certain
conditions. Examples may include age group, low mileage, occupation, if you
install an alarm or other safety devices in your car, taken a defensive driving
or drivers education course, are a member of an auto club, or loyal to the same
auto insurance company for a number of years. These discounts vary by insurer.
11. Inquire about Group Insurance
Some insurers may offer discounts to drivers who
obtain insurance through an employer provided group plan, through professional,
business and alumni groups, or trade associations. Ask your employer and check
with groups or clubs you are a member of to see if you are entitled to such
discounts.
12. Drop Collision Coverage On An Older Car
If your car is 10 years or older, you may want to
consider removing the collision coverage on your policy. Before you do this,
you need to weigh the cost of the collision coverage with the value of your car
and your chosen deductibles. For example, if you had a 12-year-old car that was
worth about $1,000, and your deductible was $1,000, that collision coverage is
worth zero. However, remember that you will have to bear the cost of repairs
directly out of your pocket should you get into an accident.
13. Take Defensive Driver Training Courses
Safer drivers pay lower insurance rates. Taking state
and/or insurer approved defensive driving courses in the past 3 years will get
you reduced auto insurance premiums.
14. Install Safety And Anti-Theft Devices In Your Car
Insurers may give you discounts on your auto insurance
if your car is equipped with one or more of the following options: Anti-lock
brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such
as car alarms and tracking systems may also get you a discount because they
reduce the chances of your car being stolen or vandalized.
15 Reduce Auto Insurance By Moving
If you move from urban big city traffic location to a
rural area with little crime and traffic congestion, your premium will
generally be lower. Of course, you would do this only if it is in keeping with
other life-style decision factors.
16. Where Do You Park Your Car?
If you park your car in a garage, you may be entitled
to a slight premium reduction. Cars parked in garages are less likely to be
stolen, vandalized, or struck by other vehicles.
17. Develop A Relationship With Your Insurer
If you have been with one insurer for a long time,
most will charge an existing client who has more than one recent claim less
than they would a new client in the same situation.
18. Keep Your Insurer Up To Date
Make sure your insurance company always has correct
and up-to-date information on file. For instance, if you relocate from an urban
to a suburban or rural area, your rates may go down.
The key to auto insurance savings is not the
discounts, but the final price. An insurer that offers few discounts may still
have a lower overall price. The discounts listed may not be available in all
states or provinces or from all insurance companies, so once again, it pays to
do your research as the savings are just too significant to lose!
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