And the insurance rates you pay are hugely dependent on the insurance company or agent, your age, vehicle type, your driving history and even the area where you live!
You should never go without auto insurance though, despite the costs. Almost all states require that you protect with a minimum amount of liability coverage. Naturally, the minimum is not adequate enough to own the vehicle average. And as you add additional coverage for your car, you realize you have to pay a considerable sum annually.
So, understanding auto insurance can actually help decide on a suitable insurance policy that no vacuum clean your wallet! Here, we found 10 of the best tips to reduce your auto insurance, up to 40%!
Always compare insurance policies. There are states which regulate auto insurance rates, but insurance premiums can vary by hundreds of dollars for the same exact coverage. It is definitely worth a shop around. The first thing you can do is check with your state insurance department. They often provide information on the coverage you need and sampling of large firms. You can also ask your friends or see the yellow pages. Checking consumer guides and asking insurance agents can pay well. You can easily find the price range of your insurance policy and find the lowest prices in town.
However, it should not be shopping based on price along. The insurance company should provide a good service at the best price. Excellent personal service is also available, and provide greater comfort, despite costing a little more fair. Ask the company how you can lower your costs, and also check their financial capacity. The golden rule is always to get three price quotes from three different companies and choose the one with the best value.
It may also be a good idea to increase your deductibles. When you file a claim, the deductible is the amount you pay before the insurance company pays the rest of the damage. A higher deductible on collision and comprehensive coverage can lead to a much lower premium. For example, increasing your deductible from $ 200 to $ 400 could reduce your premiums by up to 25%. However, you must ensure you have the financial resources to handle the largest deductible when the time comes.
The elimination of certain types of coverage your policy. Almost all states require liability coverage for your car, but the rest of the coverage is probably dispensable. However, not enough if you're in an accident, so it is not advisable to delete all of your additional coverage. Optional coverage includes medical expenses, uninsured motorist, collision and comprehensive coverage.
Drop collision and comprehensive coverage for older cars. If you drive an old car worth less than $ 2,000, is probably more profitable than the drop collision and comprehensive coverage since you probably will pay more for coverage you pay for a claim. You can find out the value of your car by asking auto dealers and banks.
Make sure your credit report looks good. The car insurance companies often look at your credit history as there is a correlation between the risk to the company and your credit history. If you pay your bills on time and maintaining a good credit history, you can enjoy lower insurance rates.
Drive less. Insurance companies often offer low mileage discounts to motorists who drive less than a certain number of miles each year. You can use public transport more often, car pool with friends and take a train or a plane instead of driving to another state. You save more than coverage, since it will have to spend less on gasoline (of which prices are incredibly high).
Maintain 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 a clean driving record. This means that you have no accidents, no serious driving violations etc, during this time period. The easiest and safest way to take advantage of this offer is to drive carefully and defensively all the time.
Choose a low-profile car. Insurance rates vary among difference models of vehicles. Generally, sports cars and high performance cars tend to cost more to insure, mainly because they represent a high risk of theft and drivers are often the people who drive more recklessly. Newer cars cost more to repair or replacement of old, so naturally they can more to insure. Low-risk vehicles include trucks and cars.
Ask about safety and security discounts. Insurance companies sometimes offer discounts on your insurance if your car is equipped with the following: anti-lock brakes, air bags, automatic seat belts, alarms, tracking systems. These reduce the risk of injury to you and the chances of your car being vandalized or stolen.
Finally, ask about other discounts. You can 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 receive discounts for taking a defensive driving course, staying with the same company for a few years, be a driver of 50 years, good student discounts, and be a member of the AAA. If you already have adequate health insurance, payment can also eliminate duplicate medical coverage, thus reducing the costs of personal injury protection for a substantial amount.
