There are numerous steps that you can take to lower your automobile insurance rates. The most important is to just to drive safely over time, and just do it like grandmother was sitting in your passenger seat! The fact is that even one speeding ticket or very minor accident could raise your insurance premium. However, many people just can’t get themselves to drive slower, so there are other effective, pro-active ways to get help and save money on car insurance bills. Some of the methods include the following.
Shop for a new policy and continually get new quotes. Your current provider will often times not continue to offer you the best rate over the years, and shopping around every couple of years can save you money. Studies show, including a recent study of 100,000 individuals by Consumer Reports, that rates for comparable coverage can vary by more than $500 for six months' worth of coverage. Also, when looking for a new auto insurance policy, you need to get at least three quotes. Lastly, if you are considering switching your car insurance company, start shopping for a new policy well before your current policy comes up for renewal as many insurers will provide new customers with an "early shopping" discount of up to 12% that will help you save.
Raise your deductible. If you have a low $200 deductible on your car insurance policy, raising it to $500 could lower the cost you are paying for collision and comprehensive coverage by up to 30%. To save even more on your bills, raising your deductible to $1,000 could lower your premium by 40% or more. This should always be done for older cars as well.
You need to take advantage of all discounts. For example, did you know that many insurers will provide customers with a discount of up to 15% for your teenage drivers who have a B average or higher in school. Others include defensive driving. Some auto insurance companies will offer a 5% to 10% discount for policyholders who take a defensive driving course.
Additional examples of discounts include the combination concept, which can often knock 10% to 20% off your bills and premiums if you insure both your car(s) and your home with the same insurance company. Association and group discounts may also be available for if you are affiliated other associations, such as maybe you are in a military group, your alma matter may offer savings, or a professional organization. Be sure to ask for all discounts.
Discounts for Automobile Safety Features. This is becoming more common as technology continues to improve. Safety features on your automobile will also lower your car insurance payments. Topping the list of money saving safety features are antilock brakes. States such as New Jersey, Florida, and New York even encourage drivers to buy automobiles with antilock brakes by requiring car insurance companies to give discounts. Check to determine if the auto insurance company you are getting a quote from provides a discount for that or other safety features. Some examples of the other safety features you may get a discount for include automatic seat belts, car alarms, and airbags.
Understand what you are paying for. It is important to understand the different types and components of an auto or even motorcycle policy. If an owner does not understand what an insurance company is quoting them, they may buy unnecessary coverage and overpay. Knowledge is key to saving money. More auto insurance policy terms and conditions.
Auto Clubs and Professional Organizations. Are you one of those people who was about to pay $100 for a hotel room, and then you learn that an AAA discount saves you 15 percent on that room? So you end up paying $85 and are happy and proud. The car insurance business is very similar. Being a member of AAA, or other professional organizations, will almost always lower the auto insurance rates you pay. You need to check with your employer to see if there are any group insurance rates offered by your company. Check with your credit union and others. You can also ask the car insurance company representative when you inquire about the cost of the insurance policies.
Check and clean up your credit report. Whether you like it or not, your credit report and scores can impact whether a car insurance company is willing to insure you, and at what rate that insurance will cost. Somebody who has poor scores or generally pays their bills late could end up paying 30% to 40% more than somebody without those credit or payment problems.
There are many other money saving tips for car expenses. Find out how you can refinance your car loan (yes, your car loan!) and save hundreds or thousands of dollars over the life of the loan.
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