10ways to lower your car insurance
The insurance rates you pay are highly dependent on the insurance company or agent, your age, your vehicle type, your driving history, and even the area you live in!
You should never go without car insurance, despite the costs. Almost all states require you to protect yourself with a minimum liability coverage. Of course, the minimum is not enough for the average car owner. And when you add extra coverage for your car, you know you'll be paying a fairly large amount annually.
So, understanding auto insurance can actually help you decide on a suitable insurance policy that won't vacuum your wallet! Here, we've rounded up 10 of the best tips for lowering your auto insurance, by up to 40%!
Always compare insurance policies. There are states that regulate auto insurance rates, but premiums can vary by hundreds of dollars for the exact same coverage. It is definitely worth shopping for. The first thing you can do is check with the state insurance department. They often provide information about the coverage you need, as well as sample rates from the largest companies. You can also ask your friends or search for the Yellow Pages. Reviewing consumer guides and asking insurance agents can pay off as well. You can easily find out the price range of your insurance policy, as well as discover the lowest prices in the city.
However, you should not shop based on price. The insurance company must provide good service at the best price. Excellent personalized service is also available, and offers additional amenities, although they cost a bit more. Ask the company how you can lower your costs, as well as check their financial ratings. The rule of thumb is to always get three quotes from three different companies, and choose the one with the best value.
It may also be a good idea to increase your discounts. When you file a claim, the deductible is the amount you pay before the insurance company pays for the rest of the damage. A higher collision deductible and comprehensive coverage can result in a much lower premium. For example, increasing the deductible from $200 to $400 can reduce insurance premiums by up to 25%. However, you must ensure that you have the financial resources to deal with the largest discount when the time comes.
Remove certain types of coverage from your policy. Almost all states require liability coverage for your car, but the rest of the coverage can probably be dispensed with. However, you don't want to be underinsured if you get into an accident, so removing your additional coverage entirely isn't recommended. Optional coverage includes medical, uninsured motorist, collision and comprehensive coverage payments.
Fall collision and comprehensive coverage for old cars. If you drive an older car that's under $2,000, dropping collision and comprehensive coverage is likely to be more cost-effective because you'll likely pay more for coverage than you'll collect in a claim. You can find out the value of your car by asking car dealers and banks.
Make sure your credit report looks good. Auto insurance companies often look at your credit history as there is a relationship between the company's risk and your credit history. If you pay your bills on time and maintain a good credit history, you can enjoy lower insurance rates.
have less. Insurance companies often offer reduced mileage discounts to motorists who drive fewer than a predetermined number of miles each year. You can use public transportation more often, carpool with friends, and take a train or plane instead of driving to another state. And you'll save more than your coverage as you'll need to spend less on gasoline (which is incredibly expensive).
Keep a clean driving record. The company will give you a price break and you can save on your insurance policy after a specified period of clean driving record. This means that you have no accidents, no serious driving offenses, etc., during this time period. The simplest surefire way to qualify for this opponent is to drive carefully and defend all the time.
Choose a low-end car. Insurance rates vary for different vehicle models. In general, sports cars and performance cars tend to increase the cost of insurance, mainly because they present a higher risk of theft and drivers are often the people who drive recklessly. Newer cars will cost more to repair or replace than older cars, so naturally they can be insured more. Low-risk vehicles include station wagons and sedans.
Ask about safety and security discounts. Insurance companies sometimes offer discounts on your insurance if your car is equipped with: anti-lock brakes, airbags, automatic seat belts, car alarms, and tracking systems. This reduces your risk of injury, as well as the chances of your vehicle being vandalized or stolen.
Finally, ask about other discounts. You may get a discount if you buy more than one type of insurance from the same company or if you insure multiple cars under the same policy or company. You may also get discounts for taking the defensive driving course, staying with the same company for a few years, being an over-50 driver, good student discounts, and being an AAA member. If you already have adequate health insurance, you can also eliminate paying for duplicate medical coverage, thus reducing your personal injury protection costs by a significant amount.
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