Car insurance prices can seem radical at times, and you may feel as though you are stuck, with no way to lower the cost of your auto insurance. However, upon closer inspection, you'll find several ways to save on your auto insurance costs. Here are a few ways you may be able to put back a few bucks.
Don't purchase an insurance policy until you've shopped around. You should have the quotes and coverage information from at least three different companies. The idea of having car insurance is to provide you with the financial assistance you need should you have a claim, and you should be able to trust that the auto insurance company from which you decide to purchase your policy is secure in its own financial standings. This determination should go hand-in-hand with affordable rates. After all, what good is it to have the financial assistance of an insurance policy when you file a claim if you are paying too much for the policy in the first place?
Also, before you buy a car, check into the options you have that will help reduce the coverage costs. Insurance costs are partially based on the safety rating of the car you are driving. Sports cars increase insurance rates, while sedans with dual side airbags, antilock brakes, and security systems provide discounts on auto insurance rates. Check the internet for the list of cars most likely to be stolen; these will surely increase your insurance payments.
Change your coverage; use higher deductibles to decrease the premiums. Deductibles are the amount of money you must pay toward auto repairs prior to your insurance kicking in. The only caution involved in using a higher deductible is that you must have the money saved to cover the deductible should you need to file a claim. However, you can save quite a bit if you can do this. For example, changing your collision and comprehensive damage deductible from $200 to $500 can save you anywhere from 15-30% overall. Also, if your car is older, and you are no longer financing it, you could reduce the coverage. Most states do not require full coverage, only liability, on an older car. If your car is worth less than ten times the premium you are paying on it, you should consider reducing the insurance policy.
Seek other discounts from the auto insurance companies. Sometimes, purchasing multiple policies (for example, car and homeowner's insurance) from the same company will earn you a discount. Also, having multiple vehicles on a policy can reduce the premiums. Low mileage can reduce your insurance rates. Good credit records, excellent driving records, and defensive driving courses all help to reduce insurance costs. Also, if there is a young driver on your policy who is an excellent student, good grades can often be presented to insurance agents to reduce the price of your policy.
So don't feel stuck in a rut with high insurance rates. There are plenty of ways to reduce the premiums that the insurance companies are charging you for your coverage. Take the time to sit down and find ways to reduce your costs so that you can save money for more enjoyable things!
