Don't assume that all insurance companies have the same prices. Insurance companies have certain guidelines imposed by the state they're in, but they have a lot of leeway to interpret their auto insurance rates. Because of your particular record, the car you drive and other variables, the cheapest car insurance for someone else, like your parents and neighbors, might not be the cheapest for you.
You can do a lot on your own to make you eligible for the cheapest auto insurance available and that doesn't mean call every agent in the book for a quote (that part comes later). The best way to get the cheapest auto insurance available is to be a good driver.
I know people who scoff at a single traffic ticket. That is, until they get their next insurance bill. One traffic ticket can cost you hundreds of dollars a year, for years to come. So if you like to put the pedal to the metal, back off. Or you'll find that that there are plenty of insurance companies that want you as a client at their new triple lousy driver rate.
You are eligible for the cheapest auto insurance if your carrier believes that you are a very low risk, or likelihood, of filing a claim. Filing claims means you are a greater risk and cost them more money. The good part about insurance companies is that if you save them money by never filing a claim or getting traffic tickets they can pass that saving on to you.
Make sure to update your insurance company every few years about things like family changes and how far you commute to work. As our situations change in life, our insurance coverage, and costs change along with them. Many companies will also give you a better deal if you bundle different types of insurance together, such as homeowners and automobile insurance.
Now you know what you can have, so shop around. Every company is different so it pays to obtain quotes from several different companies and see which is best for you. Ask about coverage discounts and how your rate could change with a different deductible. Safe drivers who rarely need to make claims can usually get by with a higher deductible rate. That way both you and the insurance company are betting on your good driving record.
So it's time to get to work now. A little research on the Internet might save you hundreds of dollars a year and automobile insurance premiums. They're probably not been a volunteer, the lower rates, unless you remind them to. There's plenty of information available today, so there's no excuse for overpaying for your car insurance anymore.
But maybe it's time you review your policy and compare it with what else might be out there that can save you substantial amounts of money this coming year.
Here are 10 tips that can help you make an informed decision as to whether you are paying too much for auto insurance:
Request higher deductibles.
Your auto insurance deductible is the amount you agree to pay upfront before your insurance company pays its share to repair your damages. Inquire about increasing your deductible from, say, $200 to $500 -- you might be surprised at how much you can save every year. In some cases, you could save between 15-30% on the cost of your collision and comprehensive coverage. If you increase your deductible to $1,000, you may be able to cut it even further -- perhaps by as much as could decrease that cost by at least 40 percent, or more.
Drop coverage you don't need.
Do you drive an old beater? Consider dropping collision and/or comprehensive coverage altogether. Who needs to pay a premium that is higher than the actual value of the car to begin with? So go online and check out how much your car is actually worth. You can do this at Edmunds.com.
Don't pay for double coverage for medical.
If you're already covered with a decent health, life and/or disability insurance policy, just buy the the minimum personal injury protection that your state requires.
Don't buy a car that thieves like to steal.
It's more expensive to insure a car that is popular with car thieves. You can check out the statistics for that at ConsumerAffairs.com. And while you're at it, don't buy a car that is expensive to repair.
Drive less.
Many insurance companies offer a ?low-mileage discount? to drivers who qualify. So if you can carpool to work, you might save on gas AND insurance. And not only that -- you'll sustain less wear and tear on your vehicle too. Lastly, many cities reserve an express lane on the freeway/interstate for carpoolers -- so you'll get to work faster, too. Call your insurer and find out whether you qualify.
Safety features can save you money, too.
Did you know that You can often get a discount if you own a car with automatic seat belts, anti-lock brakes and/or daytime running lights? Also, if you have an approved alarm system or other anti-theft device you can save money, too.
Put your teenager on your policy.
Don't put teens on their own policy -- it costs too much. And another thing about teens: if they keep decent grads and pass an approved drivers? training course, you can get a reduced rate for that as well. Lastly, if your teen goes to college more than 100 miles from home, they can qualify for further discounts -- if they leave their car at home.
Put all your family's vehicles with one insurance carrier.
Many insurance companies will be happy to take your premiums for more than one car at a time. And not only that -- if you buy homeowner's and/or life insurance too, you'll save even more.
Ask this simple question: "What other discounts should I know about?"
If you're older than 50 and/or retired, you might qualify for a discount through organizations like AARP; if you have no accidents or points on your record, you could qualify for a safe-driver discount; and/or if you're a longtime customer with your carrier, you could save some money that way.
Reconsider before paying extra for roadside assistance.
Here's the thing: getting towed might actually increase your premium and/or affect your eligibility for coverage. And adding insult to injury -- you might have had coverage through your credit card. Check it out. Sometimes having roadside assistance through an independent company might be the best deal of all.
Conclusion
So there you have it -- lots of ways to save on your auto insurance. Pick up the phone and check it out. After all, who wouldn't like to have an extra few hundred (or thousand) dollars to save or spend?
Both Rob Gormly & Ara Rubyan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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