How Can I Save Money on Auto Insurance?

prices can vary by hundreds of dollars depending on the company and the type of care that you drive, so that the obvious question is: How do I save some of that cash?
Tip number one: Shop around. Prices can vary considerably from company to company so it pays to shop around and see who can offer you the best deal. It’s important to choose a company that is financially stable; you can check the financial health of insurance companies with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings) and you may consult consumer magazines as well. However, price may not be the most important thing; make sure that you have the appropriate coverage as well, it makes no sense to save two dollars in premium and put at risk and additional twenty thousand in property coverage.
Tip number two: Before you buy a care, compare insurance costs. Car insurance premiums are based in part on the price of the vehicle, it’s overall safety record, the cost to repair the car, and the likelihood of theft of that particular car. You can get information regarding vehicle safety at the Insurance Institute for Highway Safety (www.iihs.org).
Tip number three: Ask for higher deductibles. The deductible is your part of the accident, and it should be obvious that the higher your part is the less the insurance company pays, and if the insurance company is going to pay less than they should charge less as well. You should always have enough money set aside so that you can easily pay for your deductible should an accident occur. Additionally, if you have the vehicle financed some banks restrict the deductible to a maximum amount of five hundred dollars.
Tip number four: Reduce coverage on older cars. If your car is older and worth less than three thousand dollars it may be cost effective to not purchase collision and comprehensive coverage.
Tip number five: Buy your homeowners and auto coverage from the same company. Most insurance companies that provide both home and coverage will provide a multi-policy discount. Additionally some insurance companies will reduce their rates for long-time customers. Another common discount is the multicar discount.
Tip number six: Maintain a good credit record. Insurance companies have begun using your credit information to establish a rate for auto insurance coverage, and it is true that the fewest number of claims are made by people that have a higher credit score; therefore, pay your bills on time, keep your balances low, and don’t obtain more credit than you need. Additionally, keep a close eye on your credit score and correct any errors promptly.
Tip number seven: Take advantage of low mileage discounts. If you don’t drive very much you should be rewarded for it, take a look at the Snapshot Discount from Progressive, other insurance companies will offer similar discounts, but they seem to be the most aggressively discounter out there now.
Tip number eight: Seek out other discounts. There are all kinds of discounts available and you should see how many you qualify for: paperless discount, good driver discount, good credit discount, low mileage discount, long-time customer discount, multi-policy discount, good student discount, distant student discount, multi-car discount, accident free discount, defensive driving course discount, antitheft discount, advanced quote discount, homeowners’ discount, and many more discounts; however, that being said, the key is the final price and not the discounts, some companies may be able to offer a lower price even if they have fewer discounts.


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