Car Insurance- The Government Issues No Set Guide For Automotive Insurance Companies To Follow
28 November 2009
It is mandatory for you to buy an automotive insurance policy when you purchase a new or used vehicle. Anyone can find auto insurance. The hard part is finding the right amount of coverage for an affordable rate.
Your state will require you to carry a certain amount of auto insurance on your vehicle. This is known as the minimum amount you can have. This is not to say this is the best amount of coverage for you as that will have to be based on your own person needs. The government does not have a basic guideline that all automotive insurance companies must abide by.
Due to this, each insurance company sets their own rates as they want to for gaining profit. This is why your insurance rate can vary so much from one company to the next. Currently, it has come to the attention of many that the type of vehicle you drive will dramatically affect the quotes you will receive.
The less expensive a car is, the less your insurance premium will be since this will require them to pay out less if the car has to be replaced. The insurance companies will decide, on an individual basis, what your risk amount is. This will cause your premium to go up or down. If you have a brand new Corvette and you are 18 years old, your premium will be much higher than a 30 year old that drives a Honda.
Insurance companies have given a list of things that you can do to help reduce the amount of your insurance premium. Following these guidelines can help to save you some money when it comes to making sure you have the best coverage for you.
1.Replacing your expensive SUV with a less expensive car can make your payments much lower.
2.Keep a watch on the amount of miles you use within a year. The less miles you use, the less chance they assume you will be in an accident.
3.Whenever possible, ask your parents to add you to their existing policy if you are 25 years of age or younger. This will reduce the amount you will have to pay on a new policy.
4.If you are currently a student, they will offer you a discount for continually having good grades.
5.Having a security alarm, air bags, and anti-lock brake system on your car can dramatically reduce your premium.
6.Change your deductible to a higher amount. This will make the insurance company have less to pay when you file a claim. Keep in mind that this will be the amount you are required to pay before the insurance will kick in.
It is always recommended to speak with your automotive insurance agent to inquire of other discounts that might be available to you. Not all insurance companies will let you know upfront if you qualify for a discount. Asking is the only way you will get it.
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