Most people complain about the cost of their auto insurance--hardly surprising, given that a typical policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can you lower your premium and save yourself money?
If you own a car and drive it, going without insurance is generally not an option. In most states, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.
Specific ways to save money on auto insurance:
1. Shop around.
One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.
2. Increase your deductible.
For many people, raising the deductible on their is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.
3. Keep an eye on your credit report.
Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.
4. Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.
5. Don't use your car for business purposes.
Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes.
6. Drive more safely.
You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times.
7. Buy a low-profile car.
Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly. If you own such a vehicle, you will likely pay a higher premium than if you owned a station wagon, sedan, or other low-risk vehicle.
8. Move.
If you live in a rural community with little crime and traffic congestion, your premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. Granted, you shouldn't move just to cut your auto insurance costs. However, this may be one of many factors in your decision if you're thinking about relocating from the country to the city.
9. Keep your car in a garage.
Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction.
10. Have safety/anti-theft devices installed.
CYou may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized.
11. Inquire about multifamily/multipolicy discounts.
You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner's). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company.
12. Other discounts
Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.
Please note that this description/explanation is intended only as a guideline.
For more information about auto insurance please go to: Insurance.com
Author: Rob Sliver
Let Your Survey Write Your Business Plan Entrepreneurs are first taught to generate a business plan,
then during its creation discover what it is they are going
to offer and to whom. Marketing master,...
REST: The New Strategy for Business and Life Success No matter how many times you have vowed to change your harried ways, you still find yourself running behind, running out of time, running out of patience and ru...
Online Business Peace of Mind Is your online business disaster-proof? Online businesses face a unique set of challenges. Unlike our offline counterparts, we must worry about hackers, credit-...
Four Employee Behaviors That Can Kill Your Business I found it important to clarify for employees what "deal-breaker" behavior was at my company. These are the things I insisted would not be tolerated and would l...
Self Publishing At The Speed Of Thought Learn how easy it is to get your work in front of the masses these days. Whether you are interested in online or offline publishing of your work, this is a goo...
Online Joint Venture Ideas A joint venture is when two or more businesses join together
to work on a project for a set period of time. Doing online
joint ventures can increase your chan...
Fathers Day Origins and Inspiration While mothers have had their special day since 1914, fathers have only recently officially received the recognition they so richly deserve. Here are some though...
4 Dynamic Marketing Tactics Some of the simplest marketing tactics often produce the most profitable results. Here are 4 examples that have proven highly effective for any business.
Instant Credit Card Approval Online An instant credit card might be the best credit card online but that doesn't mean you can run to the nearest Wal-Mart and shop with it instantly. The bank or cr...
The Scoop on Stress and Exercise Stress is defined as a response by your body to any demand made upon it and a 'demand' means a change.
16 Tips to Looking + Feeling Great Do you want to improve the quality of your life? Do you want to look and feel better than you have in years - maybe better than you ever have before? Do you wan...
When to Have a Baby Shower When to have a baby shower is again a personal choice. It can be held anytime 4-6 weeks before or after the birth. Moreover, it can be held any day of the week ...
Hummingbirds Some tips and facts about attracting the fanscinating hummingbird to your yard.
Tripping On Mindfulness One of the ironies of mindfulness is that it's still possible to be forgetful, klutzy, or even distracted while doing our best to pay attention. Why? We are cho...
Table Structures For Top Search Engine Positioning So you have a beautiful website that you paid a pretty penny for and you are completely happy with it … except no one can find it. Many web designers do not und...
Print this page