How You Can Get The Best Auto Insurance Rates |
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Greg James
28 December 2012
Car insurance is as much of a necessity as gasoline or regular maintenance. However, remember that not all auto insurance companies are the same. By brushing up on the subject of car insurance, you will be better equipped to get the best deal on the coverage you need.
To save extra money with your monthly insurance premium, drive fewer miles each year. Your premiums may go down if you report your low mileage to your insurance provider.
If you are looking for a cheaper insurance policy, then you may want to consider moving to a different city or even a different state. That is because premiums and policies differ by geographical regions. This is why going to another state for insurance may save you money.
When it comes time for your annual policy renewal, see if your driving habits have changed. Keep your information current. If you have a different job, you could save, if you drive less to get there.
Instead of paying your automobile insurance on a monthly basis, consider saving money by paying in 6 or 12 month increments. Your insurance agency adds monthly fees to your bill, usually around $5 every month. This money can add up quickly. It is also a time consuming task when taking into account your other bills. IF you have less payments you are better off.
If you want to get a better insurance rate, be sure to make sure you have the highest FICO score possible. Auto insurers will check your credit before pricing your policy. Insurance companies use credit scores as one of the factors in determining your rates, because studies have found a correlation between people with low credit scores and people who get into accidents. If you want to keep insurance low, make sure you have a good credit score.
If a vehicle is no longer in your possession, take it off your insurance policy immediately. Keeping insurance on a car you no longer own can cost you a significant amount of money.
You can find a statistic called the "consumer compliant ratio" on the insurers in your state. This is a percentage of claims that the agency agrees to fulfill.
Always consider the costs of insurance before purchasing a car. When you buy a safe car you will be more reputable. Sporty cars are generally not favored by insurance companies. When you buy your car, don't forget to incorporate this important expense.
There are a few companies out there that will reduce your premiums if you are a senior citizen and have taken a driving refresher course. It is great when you receive a 10% discount on car insurance.
If you are contemplating making after market additions to your car, have a conversation with your agent to see how these would be covered. For example, a gps system that cost you $500 may only be appraised as adding a value of $50 to your car. If your vehicle is stolen, you will lose that difference.
It may be tempting to remove your collision coverage in order to lower the price of your insurance premium, but if you cause an accident and have no such coverage, you will be held responsible for the entirety of your vehicle's repair bill. It can be a lot more difficult to fully repay a repair bill instead of paying a smaller premium.
If you want to lower your insurance premium, consider raising your deductibles. If your insurance deductibles are high, your rates may be lower as insurance companies believe that you will not file claims on smaller amounts. However, be aware that with a higher deductible, you have a higher out-of-pocket expense should you have a reason to file a claim.
You may be confused about how much coverage you need to carry. The figures can be confusing, and you may be left wondering how much is enough. In the event of an at-fault accident, you could be sued by the other party to cover their medical expenses. If your bodily injury liability is not adequate to cover these, then your personal assets are now exposed. In the long run, it really is best to stay on the safe side, and make sure you have enough coverage.
If issues with your driving record are raising your insurance premiums, then you may be able to take action to reduce your rate. For instance, some companies will lower rates if you are successful in completing a driving course after an accident or ticket. You could also see if your insurance company has a similar program to Progressive's, which allows drivers to have a computer chip installed into their car. This chip monitors your daily driving habits and reports them back to the insurance company. If you practice good driving habits, the insurance company will then lower your rate.
The price of insurance coverage varies from person to person. The variety of prices isn't just due to the type of car you drive or your particular situation. There are some people who always end up getting a better deal for the same policy. The trick to becoming one of the lucky ones is to learn the little tricks that make a huge difference in auto insurance rates.