Auto Insurance Saving Tips
Many people feel they're paying too much for auto insurance. This is a quite sensitive subject especially in this time when every dollar counts. While some people feel that there's no way they can get around it, others are thinking about dropping auto insurance coverage altogether, though it's illegal in most states. But don't rush with falling to the extremes as there are perfectly legal ways you can lower your auto insurance costs. And if you manage to combine some of them, you will get a significant drop in your rates the next time you pay for your insurance.
So here are some of the most effective and easy-to-apply ways to lower your auto insurance premiums:
DROP COVERAGE YOU DON'T NEED
If you live in an area where floods aren't likely to occur it is evident that you don't need flood coverage, which costs you money. The same goes for any other potential hazards that you are very unlikely to encounter in the area where you drive your car most of the time. While having more coverage types on your policy may sound reasonable, it's definitely the cheapest way to go.
ADJUST YOUR COVERAGE AMOUNTS
Some types of coverage (such as liability coverage) are necessary and legally required by state authorities so there's no way you can drop them. But you may lower your coverage amounts to decrease the cost of your policy. However, take note that first of all there are state required minimum amounts of such coverage types and learning them is a must before you adjust your amounts. Having these amounts below the required minimums is likely to result in serious problems with authorities in case you have an accident or traffic violation. Make reasonable adjustments if there's space for them.
INCREASE YOUR DEDUCTIBLES
Deductibles are indirectly related to insurance rates, and if you have increased your deductibles your rates will drop respectively. So if your policy has deductibles of $250 it may be wise to push them up to $500 or even $1000. In such a case you are likely to get a 15-20% in final rates and it's quite a good saving opportunity.
MAKE YOUR CAR SAFER
Installing airbags, anti-lock brakes, additional seat belts will increase the safety of your vehicle and decrease the insurance rates. Make sure to report to your insurance broker or agent after improving your vehicle to get the discount you deserve. Installing anti-theft devices will also result in a decrease of your premiums, so think about that too!
GET YOUR DISCOUNTS
Some groups of people can opt for discounts their insurance companies can provide them with. For example, if you drive less than 10,000 miles per year you can opt for low mileage discount. If you're a good student, living more than 100 mile away from your home you can get a special discount too. Don't be ashamed about asking your insurance agent or broker about discount, maybe you are eligible for one and it will save you some money.
COMPARISON SHOPPING REALLY HELPS
The rule of comparison shopping applies to auto insurance just like to any other product. Before you apply for a policy make sure to get as much auto insurance quotes from different companies as possible and compare all of them. Sometimes the rates will vary significantly between companies for the same auto, so why should you get a costly policy when you can get a cheaper one? The best way to get auto insurance quotes is searching online. Our site provides free online auto insurance quotes to all users and you can even get the best deals according to state.