Getting auto insurance is an important part of your overall financial planning. The amount you pay for auto insurance depends on the company you choose and the type of coverage you want. Here are some tips to help you save money.
Shop Around: Get quotes from at least four or five different insurance companies and compare the prices. Use your friends, family, and the yellow pages to help you. Your insurance company should have good service records and fair prices. Check the company's financial ratings because they show how strong and stable the company is.
Ask for higher deductibles. A deductible is the amount of money you have to pay before you can make a claim for an accident. The deductibles are sold with the collision and full coverage. The premium rate will be lower the more you have to pay out of pocket. If the deductible goes from $200 to $500, the cost could go down by 15% to 30%.
Drop collision and comprehensive coverage on older cars. If your car is worth less than 10 times your premium on the current market, you might want to drop collision and comprehensive coverage.
Buy auto insurance from your current company. Buy insurance from your current company. This could help you cut down on costs. Customers who stay with a business for a long time can sometimes get lower rates.
Avoid having two kinds of health insurance. If you already have enough health insurance, don't add health insurance to your auto policy. You'll save money by doing this.
Keep your credit history in good shape. Insurance companies use credit history to figure out how much to charge for insurance. Statistics show that the more claims you make, the worse your credit score is. People with good credit are more likely to be able to settle the accident without the company's help. Try to keep your credit record clean.
Cars with a low profile get discounts. Cars that are hard to fix or are easy to steal will have a higher rate. You might want to buy a low-key or average car because your insurance company might give you a discount if you do.
Use the low mileage discount. You can get a discount on your premiums if you drive less than the average number of miles driven in the United States in a year.
Talk to someone about a group discount. Your employer, a business group, or another organisation may offer group plans with discounts. Find out if there is a plan like that.
Look for discounts for car safety. Some insurance companies will give you a discount if your car has air bags, anti-lock brakes, anti-theft devices, and automatic seat belts. Make the most of this.
