Auto insurance rates are rising all of the time, much to the displeasure of motorists everywhere. If you are one of the many people who is concerned about having to pay more and more money out to your insurance company to insure your motor vehicle then you need to look for effective ways to either reduce the money you spend or minimize the increases to your policy. Here we look at 12 ways to make your auto insurance experience not quite so stressful on your psyche and your bank account!
1: Insure more than one car and/or more than one driver at once
Insuring a single car can end up costing you more money at a given insurance company than can insuring more than one vehicle that you own at once. The same can be said for insuring drivers. In this instance the more the merrier! The reason for this is because most insurance providers will offer their customers a bulk rate to encourage more business to come their way.
To find out if you qualify for a deal or discount such as this ask your insurance company or the agent you deal with to find out if you qualify. From there you can obtain a quote and can decide if it is worthwhile for you. In most instances multiple drivers on a policy must reside at the same address and must either be related by marriage or be blood relatives. However there are exceptions to this rule.
2: Remain as squeaky clean as possible.
A clean driving record with as few moving violations, speeding tickets or accidents as possible will work in your favor. The more of these issues that you have on your record the higher will your annual premiums be. Everyone who drives has points on their record. Your points go up with every moving violation you encounter. In most cases the more points you have the more you will have to pay on your annual premiums.
3: Sign up for a defensive driving course.
There are plenty of insurance companies that look favorably upon those drivers that take the time to take an approved (in other words, accredited) defensive driving course. This can help to bring down your rates because it renders you less of a risk when you get in your car. As well there are cases in which such a course (or also an accident prevention course) can serve to reduce the number of points that have built up on the individual’s license.
Find out whether your insurance provider offers deal or discounts for such a course before you sign up for it. While this type of course is always good in terms of your driving education if it does not translate to savings on your insurance policy then it may not be worth it to you.
4: Browse and shop until you drop!
Just as you browse and shop for a new pair or shoes or a new computer, the same should be said for an auto insurance plan. You do not have to stay with an insurance company that charges you premiums that are too high. It is always a wise idea to obtain anywhere from two to three quotes from new companies every one or two years. Bear in mind however that the cheapest price does not always guarantee you the best deal. Be sure to find out about the credit worthiness of the insurer before you sign anything to seal the deal.
5: Take the bus or subway to work.
When you look for an auto insurance policy you will be asked if you will be driving your car to work or not. You will also be asked how many miles it takes to get back and forth to work. If it takes you two hours to commute per day then you will be charged more for mileage then if it takes you 20 minutes. If it is available to you one way to cut back on the money you are charged for mileage is to take the bus or the subway to work. However mileage thresholds are different for various companies. Before you invest in a bus pass find out if it is really worth your while.
6: Be very discriminating with your choice of a motor vehicle.
Not all vehicles cost the same to insure. For example a top-of-the-line SUV is big and maybe fun to drive but it will cost you a great deal more of your hard earned money to insure than will a small and safe car that cost less to purchase in the first place. In general older vehicles cost less to insure than newer ones. Discuss this with your insurance agent or insurance provider before you buy a vehicle.
7: Raise the amount of your deductible.
Most insurance plans allow you the opportunity to pick your own deductible. A deductible is the amount of money that you must present up front in the event of a car accident, theft or other kind of damage to the automobile before the insurance company will step in and do their part. Depending on the type of policy you choose deductibles generally range in price form the minimum of $250 to the maximum of $1,000.
What is important to bear in mind is that the lower your deductible is the higher will your yearly premiums be. The opposite is the case if you choose a high deductible. Find out from your insurance company if raising your deductible will result in substantial savings or not.
8: If need be, work on improving your credit score.
Your driver’s record plays a large part in determining the cost of your car insurance policy. The more problems you have had in regards to your driving record the more of a thorn in the side you will be to an insurance company and therefore you will be more expensive to insure.
What many drivers do not realize is that some insurance companies check the credit ratings of potential insurance holders before approving them. They may use this information to determine premiums. While this may not seem fair it is permitted by law. What this means for the person with less than stellar credit is that it is necessary to start putting honest effort into improving your credit rating. It may help you save some money in the long run!
9: Where you reside can influence insurance rates.
While most people do not choose a particular state or city to relocate to just because it boosts lower auto insurance rates this is something to think about if a move is in your near future. Insurance rates for motor vehicles vary from location to location and state to state. Bear this in mind when you are drawing up your budget for your new place of residence.
10: Get rid of coverage that is not required.
It can be a little frightening to drop any type of coverage you have on your auto insurance. However you should evaluate the coverage you have from time to time and see if there is anything you can trim off your policy to save you some money. For example, if you drive a very old car then it will save you some money to drop collision coverage on the vehicle.
Such things as your driving record and the cost of the automobile must also figure into your decision to do so. For instance, if your car only costs around $1,000 and you are paying $500 (or thereabouts) annually for collision coverage then dropping it will save you money that can be better used elsewhere. Discuss this with your insurance agent or financial advisor first though to be on the safe side.
11: Have anti-theft devices installed in your car.
Anti-theft devices are an excellent means of reducing your annual insurance premiums. You can lower the premiums by as much as several percent. Your insurance agent or insurance provider should be able to accurately tell you which anti-theft devices can reduce your auto insurance dollars. Two of these devices that are worth finding out about are car alarms and LoJacks. Take the time to decide if installing these devices will bring down your premiums enough to make them worth the cost of purchasing them and having them installed in your car.
12: Speak with your insurance agent about special savings.
There may be other hidden and potential savings that you are not aware of until you talk with your insurance agent and/or provider. Inquire about any special discounts that may be available to you such as for being an employee at a particular company, being in the military or being a student. You will not become aware of any special discounts or deals until you ask. There is no harm in doing that after all!
As auto insurance rates continue to soar finding ways to cut costs becomes essential for all motorists. The tips we have outlined here should help to keep your insurance costs as low as possible.
