What would you say to saving 10% on your auto insurance? 20%? How about 30%? No, this isn't a bad infomercial! This is a quick look at what it really takes to save big on your auto insurance and the five easy steps that are going to get you there.
Step 1: Take a look at your car. How insurance friendly is your car? Do you have anti-lock brakes? What about seat belts? And do you have a car alarm or an electronic GPS tracking system that would discourage would-be thieves from repossessing your car? Fuel switches? All of these things will shave at least 5-10%, maybe more, off of your auto insurance rates, saving you money in premiums at the same time you're saving your insurance provider money in claims.
When you're car's uber safe, everyone wins.
Step 2: How's your credit score? Believe it or not, insurance companies really do take a look at your credit score when they're figuring out your monthly premiums. You might be able to save big if they like what they see, so now's the time to get your bills paid off, your debts settled and your credit report cleaned up. There's nothing you'll do, ever, that won't be happy you've got an awesome credit score backing you up.
Step 3: Evaluate your insurance needs. How much auto insurance do you really need on your car? How high do your liability, collision and comprehensive policies really need to be? More importantly, how high a deductible can you pay for that coverage? You don't want to set your insurance levels so low that they won't be able to take care of you if something comes up, but setting them too high is going to be an unnecessary expense you really don't need.
Your deductible is going to be a key player in the quest for cheap auto insurance. The higher you can afford to go, the lower your premiums are going to be. Don't set those deductibles too high, however. Remember you're going to have to actually come up with that money the next time you're in an accident, and you want to make sure your deductibles aren't so high you're going to be left without wheels for months trying to scrap up the cash to get them fixed.
Step 4: Cut your mileage. The less time you spend on the roads the lower your chances are of having an accident, which means you're (statistically speaking) less likely to cost your auto insurance carrier an arm and a leg in claims each year. Hop public transportation, carpool or foot it to the office each day. Your lower mileage will send your insurance rates falling, and both your checkbook and the ozone layer will thank you.
Step 5: Shop around! You've done all the prep work you need to do to pave the way to fantastic auto insurance rates. Now all you have to do is contact the insurance companies operating in your area and let them know you're looking for an auto insurance quote. Then all you have to do is sit back and let competition take care of the rest.
