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Shop Around for
the Best Auto Insurance Quotes
Get several
auto insurance quotes
– at least three. Contact insurance companies, provide them information about
your car
and how much insurance you want and get their best offer. This is really easy
to do these days on the internet, but you can call insurance companies directly
to discuss special needs you may have. Remember the cheapest may not necessarily
be the best. Read the fine print. Use the internet again to find reviews of
the company and see if anyone has any complaints. You can also check with the
Better Business Bureau. So, do your shopping, and get your quotes.
Buy Your Auto Insurance Online
An auto insurance policy
purchased online carries a lower
overhead for the insurance companies so they typically pass the savings on to
you.
Think About the
Insurance Cost When Buying a Car
This is something
we rarely think about when buying that new car. Auto insurance on a sports car
is going to be higher than a sedan, and auto insurance on a high priced car is
going to be higher than a more moderately priced car. A good thing to do is to
consider the average monthly cost of the insurance as part of you car payment.
Is this how much you want to spend? Is this how much you can afford to spend?
Get an insurance quote of several possible cars you may purchase BEFORE you go
shopping so you know what to expect. Do you know someone who was thrilled when
they bought that sports car only to find out that they couldn’t afford the
insurance? Or, worse yet, they bought that high end car that is on the most stolen
car list,
and in a high crime area so they couldn’t even get insurance.
Buy As Much Coverage As You Can Afford
Choose the highest liability limits you can
afford. Higher limits mean there's more financial help for you if you’re
involved in an accident. Typically, the minimum amounts required by your state
aren't enough to fully protect you.
Consider If You
Need Collision or Comprehensive Coverage
Sometimes you can
consider not adding collision or comprehensive to your auto insurance policy. A
good rule of thumb is to multiply the annual insurance premium by 10, and
compare that figure with your car’s value. For example, if you're quoted a $1000
premium, and your car is worth less than $10,000, you may want to consider if
collision or comprehensive represents a good value. If you drop collision and/or
comprehensive coverage you may get a big savings.
Consider a
Higher Deductible
Most auto
insurance companies use deductibles (or excess charges) to keep policy costs
down. The amount of the deductible is paid by you before your auto
insurance policy pays anything. Request quotes with different levels of
deductibles to see how your quotes vary. Most internet quote forms contain a
box where you can specify preferred level of deductibles. For example, going
from $250 to $500 deductible can slash your insurance costs by 20% or more. Go
to $1000 and you save a lot of money.
Don’t just take
the highest deductible because it’s the lowest quote though. If anything should
happen and you need to make a claim, that deductible MUST be paid. Can you
afford that much at any time? Also, sometimes high deductibles mean you pay for
100% of the repair because its so high. Think this out and go after a quote for
a deductible that you can afford at all times. But remember, you must pay
the deductible if you need to make a claim.
Use the Same
Company for Multiple Insurances
Most insurance
companies give you a cost break if you buy multiple policies with the same
insurer. This may mean multiple auto insurance policies, or an auto policy along
with a homeowner or with a life policy. So, be sure to ask about multiple
policy discounts.
Put Low Mileage
on Your Car
If you work from
home or work close to your home, this is easy. If you think you’ll be putting
substantial mileage on your car, consider being in a car pool or use public
transportation. If you have multiple vehicles, use one for commuting to work
and one for leisure if you can. A low mileage discount can help out the cost of
your auto insurance.
Be a Good
Driver
A good driving
record always reduces your auto insurance costs. Although obvious, don't
speed, don't drive dangerously and don’t drive while under the influence and
you'll save money – not to mention prevent any mishaps. When you get a driving
violation, your insurance company is notified. They will then assign “points”
to your auto insurance policy. These point generally last for three years! So,
you got a speeding ticket, paid the fine – but you will keep on paying for three
more years with higher premiums. Some companies will even drop you. Once an
insurance policy drops you, it’s really hard to get insurance. And, if you do
get insured again, it will be at a much higher rate. So again, drive safely!
Get Safety and
Anti-Theft Devises
Cars that have safety devises
(side air bags, anti-lock brakes, seat belts in older cars) and proper restraints will get
you discounts on your auto insurance. Anti-theft devices will also reduce your
auto insurance cost, not to mention may prevent your car from being stolen.
Take a Driver
Training Course
Never thought of
this? The majority of states mandate discounts for those who have completed
approved driver improvement courses, mostly for
drivers over the age of 55.
This can be a really fun thing to do and save you money too – as much as 15% in
some states for drivers under the age of 25. Many companies give auto
insurance discounts to teen drivers who have passed an accredited young driver
safety program. And, some companies will lower the rate every 6 months
provided the driver's record remain clean.
Check Your Current Coverage
Double-check your current coverage. You may
have coverage on your current policy that you don't need anymore. For example,
if you've become a member of a motor club, you may find you don't need that
towing coverage. Get some current quotes and compare them with what you're
paying now. You may be able to reduce that policy rate.
Be A Good Student
Being a good student doesn't just mean a good start with your
future. Many insurance companies give discounts to students who are under 25 years of age and
maintain a 3.0 ("B") grade point average or better, and are enrolled full-time
in high school, community college, or university. This can be a
great help to those drivers who get hit with the highest car insurance rates.
But, don't lie on your application because after you buy your auto
insurance you’ll need to provide official documentation.
Student Living Away From Home
If you have a son or daughter on your auto insurance policy
and they are a student living away from home many car insurance agencies will
give you a discount. You'll need to provide documentation that they are
under 21 years of age and reside at a school, college, or other educational
institution located more than 100 miles from your cars' garaging address.
Single Parent Discount
In certain states, people
raising children alone may be eligible for auto insurance discounts. You can see
which auto insurance discounts are available in your state and find out
eligibility details when you get your auto insurance quote.
Occupational Discount
In some states,
policyholders who are currently employed in, or hold a license or degree in,
Education, Engineering, or Natural Science (including mathematics) can qualify
for auto insurance discounts from some insurance companies. Professionals in
these areas often don’t get paid nearly enough for the important work they do.
So, to help them save money insurance companies offer auto insurance discounts
to these hard-working individuals.
Pay In Full
These days most insurance companies allow you to choose from
several payment plan -monthly, quarterly and annually. Usually, if you opt
to pay the full annual amount you will receive a discount. And, sometimes
if you elect to have payments made via Electronic Funds Transfer (EFT) from your
account when due you will receive a little discount.
Group Insurance and Corporate Discounts
Members of the American Automobile Association (AAA) collectively save more than
$27 million annually on their auto insurance just by providing their membership
information when they purchase a policy. You may also be able to get a discount
through trade or professional associations that you belong to, or through your
employer's corporate benefits program. |
