Purchasing car insurance is an vital part of overall financial planning, and it’s not something to be taken lightly when buying a new or used car. Your auto insurance premium rate will vary depending on the company and the type of policy coverage you choose to have.
Here are some guidelines to lower the cost of your auto insurance premium.
1. Shop Around- Take time and compare the costs of different policies by getting quotes from at least four to five insurance companies and comparing the quotes.
Ask your friends and relatives for advice and help, and check your yellow pages. Most insurance companies should offer you a fair price, especially in more populated areas of the country.
Check with your local Better Business Buraeu office to ask about the financial ratings of the company. The financial aspects of a company usually indicates its strength and stability.
2. Ask for higher deductibles- The deductible is the amount of money that you have to pay out of pocket before making any claims for an accident.
Collision and comprehensive coverage are sold with the deductibles. The higher the deductibles, the lower the premium rate will be.
Increasing the deductible from $200 to $500 may reduce the policy amount by 15 to 30 percent.
3. Drop collision and comprehensive Coverage on older cars- If your car is worth less than 10 times your premium in the current market, think about dropping your collision and comprehensive coverage.
4. Consider buying car insurance from your existing insurance carrier – Buy insurance coverage from your existing carrier. This may help you to reduce your overall cost. Sometimes, lower rates are available for the longtime customers. It doesn’t hurt to ask your present agent, if you have one.
5. Avoid double health coverage- If you believe that you have enough health insurance, then don’t get health coverage with your auto policy. Avoiding a doubling up of of the same covergae on different policies will help you to reduce the cost.
6. Maintain a good credit record- Insurers are using your credit history while determining the price of insurance. It’s been determined that the lower your credit score is, the more you are likely to file an accident claim.
A person with a good credit score is also more likely to settle the accident without the support of the company. Try to maintain a good credit record.
7. Try buying a less flashy car- Cars that are expensive to fix, or attractive to car thieves will have a higher rate than other cars you may considering if you’re prepapring to purchase a ne or used car.
Think about buying a low profile or average car. Your carrier may have discounts for “sleeper” cars.
Take advantage of the many ways you can save. After all, it’s about more money in your pocket, and less in your carrier’s.