If you’ve ever been in a serious accident, where your vehicle is seriously damaged or even totaled, you can appreciate quality auto insurance coverage. The good news is car insurance doesn’t have to cost as much as you might think. If you suspect you’re currently paying too much, check out these tips on lowering your premiums.
The Vehicle You Drive
This is one of the biggest factors insurers use to determine rates. Newer and more exotic automobiles will simply cost more to insure. A $100,000 Mercedes convertible can cost 3X that of a used Honda Odyssey van. If you are looking for the cheapest rates possible, go for a slightly used vehicle with four doors and a four-cylinder engine. Don’t fall into the temptation of buying a new sports car or any vehicle over $30,000 if you want the cheapest premiums.
Raise Your Deductible
Some people just don’t know what deductible to get. They end up going for a low amount of $250 and in some cases even $100. This means your rates are going to be quite a bit higher. The easiest way to get a discount of 10% or more is by raising your deductible to $1,000 or even higher. You just need to make sure you have the deductible amount saved, in the unfortunate event you get into an accident and file a claim. Also, some agents will try and talk you out of doing this, but they probably have their own self-interest in mind, as in keeping a higher commission in place.
Bundle and Save
Did you know bundling can save you 10% or more? This means combining your home and auto insurance onto one policy. If you have more than one car and they are with different insurers, put them all onto one policy. Before you do this, check around for the best rates. There are sites like AccessInsuranceCompany.net that will help you find the lowest bundled rates. You can also just check rates for almost any make and model vehicle.
Compare at Least Five Quotes
Thanks to the internet, comparing auto insurance rates doesn’t have to be a hassle. You no longer need to spend hours on the phone calling up agents and brokers. In about five or six minutes you can apply for quotes from up 10 ten companies at one site. You can even use your smartphone or tablet device.
The important thing to remember is to compare as many rates as you can from both national and regional carriers. Some of the best deals for auto insurance can often be found by less glamorous regional companies, that don’t spend a fortune on advertising. In one recent Consumer Reports study, rates varied from the low end of $582 to $1,514 for the same car and coverage. That is almost a savings of $1,000 and shows why it’s so important to compare as many quotes as you can.
Watch Your Credit Score
More insurers are factoring in credit scores as a way of determining risk. The stats show that drivers with higher credit scores get in fewer accidents
and file fewer claims. They also are much less likely to commit insurance fraud. For these reasons, you can save 10% or more by maintaining a credit rating of above 650. If you are below this level, take action and raise your score. Look at your credit report for any false items that can be discharged, pay your bills on-time each month and pay down existing debt as fast as you can.
Drive Safely
It pays to be a safe and boring driver by way of cheaper insurance premiums. If you have not been in an at-fault accident that past five years, you could earn a big discount. Insurers love drivers who are safe, obey the traffic laws and don’t get into accidents. You could save 5% of more just by not getting any tickets or getting into any wrecks.
Pay Your Premium in Full
If you need the absolutely cheapest car insurance possible, then do not opt for monthly installment payments. If you can afford it, pay your auto insurance premium in full at once. This simple tip will save you about 2%. It will also be one less monthly bill you need to worry about.
Get All the Discounts You Can
Everyone loves a discount. Almost all car insurance providers have a bunch of discounts you can take advantage of. Chances are you will qualify for one or more. Each carrier is different and thus some may or may not offer certain discounts. Here are a few of the most popular discounts.
- Safe Driver
- Bundling Auto and Home Insurance
- Accident Free Driver
- Good Student (GPA or Grade Point Average above 3.5)
- Multi-Vehicle Discount
- Telematic Discount
- Teacher
- Paperless Billing Discount
- Advanced Safety Features like Surround Air-Bags and GPS Based Theft System Discounts
Now that you know the inside secrets on getting cheaper car insurance, get a quote and lower your premium.
