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Lower The Cost Of Your Car Insurance
By: Evan Smith
Buying auto insurance is an important part of your overall financial planning.
The auto insurance premium rate varies depending on the company and the type of
policy coverage you choose to have. Here are some guidelines to lower the cost.
Shop Around- Compare the costs by shopping around at least four to five
insurance companies and comparing the quotes. Take the help of your friends,
relatives and yellow pages. Your insurance company should offer fair price and
posses excellent service records. Check the financial ratings of the company as
it indicates the strength and stability of the company.
Ask for higher deductibles- Deductible is the amount of money that you pay
before making any claim for an accident. The collision and comprehensive
coverage are sold with the deductibles. Higher the deductibles lower will be the
premium rate. Increasing the deductible from $200 to $500 may reduce the cost by
15 to 30 percent.
Drop collision and comprehensive Coverage on older cars- If your car is worth
less than 10 times your premium in the current market, consider dropping the
collision and comprehensive coverage.
Buy auto coverage from your existing insurer- Buy insurance coverage from your
existing carrier. This may help you to reduce the cost. Sometimes low rates are
available for the longtime customers.
Avoid double health coverage- If you think that you have enough health
insurance, and then avoid health coverage with your auto policy. This will help
you to reduce the cost.
Maintain a good credit record- Insurers are using the credit history while
determining the price of insurance. Statistically, the lower your credit score,
the more you are likely to file claims. A person with a good credit score is
more likely to settle the accident without the support of the company. Try to
maintain a good credit record.
Discounts with low profile car- Cars that are expensive to repair or attractive
to thieves will have a higher rate. Consider buying a low profile or average car
as it your insurer might come up with discounts for such a car.
Take advantage of the low mileage discount- Obtain some discount on premiums by
driving less than the national average mileage recorded per year.
consult about group discount- Sometimes you can get some discounts on group
plans provided by your employer, or a business groups, or other associations.
Find out whether such a plan is available.
Seek Car Safety discount- Some insurers offer discount if you keep your car
equipped with air bag, anti-lock brakes, anti-theft devices, automatic seat
belts. Take advantage of this.
About the Author:
Evan T. Smith is a contributing author for http://www.ampminsure.org/ Find more insurance articles on http://www.ampminsure.org/community/ |
