10 Ways to Save Big on Auto Insurance
Auto insurance can make a big hole in your pocket. Insurance
premiums vary hugely between companies, agencies or agents,
brokers, and of course the make of the car you own and your
credit rating. To pay lower insurance you must:
1. Always maintain a good driving record.
2. Never accept the first estimate you receive. Be wise and
check comparisons of different insurance providers at your state
insurance department website or phone them. Their addresses and
contact numbers can be accessed from
http://www.consumeraction.gov/insurance.shtml the consumer
action website. Be sure to get competitive quotes from different
insurance providers. Contact providers that are strongly
recommended by people you know well. Keep your peace of mind by
checking the financial stability of the companies with rating
companies like A.M. Best (http://www.ambest.com/) as well as in
forums and blogs.
3. Complete a market survey well before you select a car make
and make a comparative table of insurance and other hidden
costs. Find out which features increase insurance premiums and
which ones reduce premiums. For example if parts of a certain
make are hard to find or expensive such cars will have huge
insurance premiums, similarly installation of anti-theft devices
or an extra brake system lowers insurance premiums. Many
questions are answered by the Insurance Institute for Highway
Safety at http://www.iihs.org/.
4. Choose to have higher deductibles this will reduce the burden
by at least 15-25%. But look at your finances first and
determine whether you can set aside US$ 200-US$1000 periodically
to create an emergency vehicle fund.
5. Consider availing the insurance from the same company that
has you covered for home, accident, or life. Many companies
offer concessions to clients who have more than one kind of
policy. Known as a multi-policy discount this could benefit you.
6. Most policies are based on your personal credit record.
Having an unshakeable credit history can lower costs. Pay bills
on time, don't avail too many loans, and be sure that credit
balances are as low as possible.
7. Avoid duplicating medical coverage. Find out whether
eliminating medical cover in auto insurance will reduce your
premiums or the personal injury protection costs. In some places
the reduction is as much as 40%. So, if you have adequate health
insurance you could weigh the pros and cons of eliminating this
in auto insurance.
8. Find out if insurance premiums are dependant on where you
stay. Sometimes staying in a rural community or suburbs as
against the city center could save you a bundle.
9. Take advantages of discounts like low risk career, low
mileage, taking public transport to work, car pooling, no
violations or accidents, taking defensive driving courses,
following safety rules and regulations, or having a child who
studies far away.
10. Use the reductions offered for insuring more than one car
belonging to the family. Many companies have special offers for
corporate organizations, club members, professional groups,
alumni groups, or clubs.
Make time to make a big saving. Check through all the parameters
and mark areas where a saving can be made. The market is
competitive and you can be the beneficiary.