Auto Insurance Cost ReductionSep 24, 2013
How to Save Money Without Losing Quality
Because of numerous factors and reasons the cost of auto insurance is high for all United States citizens, and there is no tendency of reduction of these figures. Still, good news for you will be the fact that there are some things you may do to minimize the burdens on your budget. Here is the dozen of tips following which you will save some cash.
1. Insure More Than One Driver/Car
In case you get an insurance quote from agency to insure only one vehicle, the cost of this may be a lot higher than if you insure several car and/or drivers through that very company. To get the discount you should ask your agent about the requirements and see whether you meet them. Basically, the drivers should live in the same house and be related somehow. Is they are not related, two drivers should own the vehicle together.
You may also get the discount if you are already a client of this particular company and own some of the policies.
2. Keep A Clean Record
It is obvious even for the child that the more accident and violations the person has, the more he or she will have to pay for the auto insurance. Keep it in mind and drive cautiously.
3. Take A Defensive Driving Course
As long as you master defensive driving or accident prevention course, most insurers will provide you with a discount. Make sure you ask your agent if it is significant for your insurer before you actually sign up for the course.
4. Shop Around
It makes sense to get the insurance quotes from different insurance companies every year to be sure that the cost of your insurance policy is the most adequate for you.
But still, cheap is not always a synonym to best insurance, insurer credit worthiness is as well important. Before the purchase check up the ratings of the company and learn well your contract to clarify all the points.
5. Take Mass Transit
when getting the insurance policy, you are usually issued a questionnaire that among others has the question about the miles your auto covers annually.
In case you use your vehicle to go to work and back home every day, you will surely pay more than the person who uses car to drive mile a day. If it possible, try using mass transit to rack up fewer miles.
6. Select Your Vehicle Carefully
Before purchasing the car think about the insurance rates that are closely connected with the type of vehicle you are driving. The age of the car is as well important, and the older the car is, the lower your premiums will be.
7. Consider Raising Your Deductibles
When you get your car insurance policy, you may either choose the deductible or just note the amount of money you would like to lay out before any accident happens. Depending on the policy, deductibles are usually $250-1000, and the lower is the deductible, the higher annual premiums you will get.
8. Improve Your Credit Rating
As we already said, driver’s record is important for counting up your premiums, but remember that your bad credit rating may seriously wind up the cost of car insurance policy for you.
Why person's credit rating is even considered? It is believed that those people who are able to keep their financials under control are more responsible drivers.
9. Pay Attention to Where You Live
No one really changes the place of living only because of auto insurance ratings, but if you actually move, your car insurance rates may really change, so learn more to save your money.
10. Drop Unnecessary Coverage
Giving up some of the coverage types has two sides, and no one may know when the accident may occur. Still, for some situations it will be wiser to, for example, drop collision coverage if your car is as old as the world. In such case the insurance company will total the car that costs $1000, and there is no need in coverage that costs you $500.
Before actual dropping the coverage talk to your financial advisor and your insurance agent.
11. Install Anti-Theft Devices
If you have the anti-theft device on your car installed, your annual premiums will get much lower. More specific information on the types of devices that may lower the premiums is obtainable for you from your insurance agent. Take your time and make the right decision without risking your security and assets.
12. Question Your Agent
Aside from the options noted above, there may be other ways to save our money. It is better for you to ask the insurance agent about the discounts they have for the moment. There is also a “good student” rate that takes into consideration your academic success. Ask first, and then make your choice.
The Bottom Line
The costs of auto insurance policies seem to increase from year to year, but there are a lot of ways for you to save dollars on your driving. Hopefully the list of tips above will help you with getting the best insurance at the adequate price.