Auto insurance can be very expensive nowadays. A typical policy of insurance can run from a few hundred to a few thousands dollars per year. Insurance rates are highly dependent on many factors, including your age, vehicle type, driving record, as well as the location you live in.
Even though it may be expensive, you should not go without auto insurance. Nearly all states require that you have at least a certain amount of liability coverage. The minimum required coverage is not enough for most car owners. You will pay a lot more annually if you get additional coverage for your vehicle.
Understanding auto insurance can help you choose the right insurance policy for you. Here are 10 great tips to lower your auto insurance. You can save as much as 40%
Always compare different insurance policies. Although auto insurance rates can be regulated in some states, the premiums for similar coverage can vary by hundreds of thousands. It is worth shopping around. First, check with your state’s insurance department. You can often get information from them about your coverage and sample rates from the largest companies. Ask your friends and consult the yellow pages. You can also ask insurance agents or check consumer guides. It is easy to find out the cost range of your insurance policy and the lowest prices in the area.
You should not shop solely based on the price. You should get the best service and lowest price from your insurance company. You can also get excellent personal service. However, they may be more expensive. Ask the company about ways you can reduce your costs. Also, check their financial rating. It is a good rule of thumb to get three prices quotes from three companies and then choose the one that offers the most value.
You might also consider increasing your deductibles. The deductible, which is the amount you pay before insurance companies cover the rest of your damage, is what you must set when you file a claim. Higher deductibles on comprehensive and collision coverage may result in a lower premium. A $200 deductible can increase your premiums up to 25%. You must make sure that you have the financial means to pay the highest deductible.
Certain types of coverage can be removed from your policy. While most states require liability coverage, the rest of your coverage is likely not necessary. If you are involved in an accident, you don’t want your car to be covered underinsured. It is not recommended to drop any of your existing coverage. Additional coverage can include collision, medical payments, uninsured driver, and comprehensive.
For older cars, drop collision and comprehensive coverage. It’s more cost-effective to drop collision coverage if your car is less than $2,000 in value. Ask auto dealers or banks for the value of your vehicle.
Your credit score should be good. Car insurance companies will often examine your credit history because there is a correlation between your credit history and the company’s risk. Lower insurance rates can be obtained if you keep your payments on time and have good credit ratings.
Drive less. Low-mileage discounts can often be offered by insurance companies to drivers who drive less than a set number of miles annually. It is possible to use public transport more often, carpool with friends, or take the train, bus, or plane instead of driving to another country. You’ll also save more on your coverage because you will need less gasoline (whose prices are extremely high).
Keep a clean driving record. After a certain period of clean driving, the company will offer a price cut and help you save money on your insurance. This means you are free from any driving offenses, accidents, or other serious violations. Driving defensively and carefully is the best way to get this discount.
Choose a low-profile car. There are many different models of vehicles that have different insurance rates. In general, high-performance and sports cars are more expensive to insure. This is due to the higher risk of theft, and because the drivers tend to be more reckless. Older cars are more expensive to replace or repair, making them more costly to insure. Sedans and station wagons are considered low-risk.
Ask about safety or security discounts. If your vehicle is equipped with anti-lock brakes and air bags, auto seat belts, alarms, and tracking systems, insurance companies may offer discounts on your insurance. These devices reduce the risk of injury and can also help to prevent your car from being stolen or vandalized.
Ask about any other discounts. If you purchase more than one type or policy from the same company, or if multiple vehicles are covered by the same policy, you may be eligible for a discount. There are discounts available for drivers over 50, good-students, and taking defensive driving courses. You may also be able to eliminate the need for additional medical coverage if you have sufficient health insurance. This will allow you to lower your personal injury protection costs.
