Ways and Tips on How to lower your Car auto insurance costs

Car insurance rates are on the rise across with the rise in the cost of vehicles, good to know that there are things you can do to minimize your expenses.

Ways and Tips on How to lower your Car auto insurance costs

You can checkout the following tips and chose the ones that can help you to lower your car insurance cost.

1. Before you buy a car, compare insurance costs

Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft.

Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety.


2. Insure Multiple drivers or vehicles

If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers and/or vehicles with that company.

Insurance companies will offer what amounts to a bulk rate because they want your business, and under some circumstances, they are willing to give you a deal if it means you'll bring in more of it.

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two non-related people may also be able to obtain a discount; however, they usually must jointly own the vehicle.

If one of your drivers is a teen, you can expect to pay more to insure them. But, if your child’s grades are a B average or above, you may be able to get a discount on their coverage.

These discounts can range from 6% to 20%, so be sure to show proof to your insurance agent that your teen is a good student.

Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm (e.g. homeowner's insurance). Check to see if such discounts are available and applicable.


3. Larger Cars Cost More

Buying a huge SUV may sound exciting, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost commuter car.

Some insurers will offer a discount if you buy a hybrid or alternative fuel vehicle. You can feel good about protecting the environment and save money on insurance at the same time. Find out the exact rates to insure the different vehicles you're considering before making a purchase.

4. Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.

5. Improve Your Credit Rating 

A driver's record is obviously a big factor in determining auto insurance costs. After all, it makes sense that a driver who has been in lots of accidents could cost the insurance company lots of money.

However, folks are sometimes surprised to find that insurance companies may also consider credit ratings when determining insurance premiums.

Why is a person's credit rating considered? “Many insurers use credit-based insurance scores,” says Michael Barry, senior vice president and head of media relations of the Insurance Information Institute.

“It’s a contentious issue in certain state houses…[but] insurers will say their studies show that if you’re responsible in your personal life, you're less likely to file claims.”

Regardless of whether that's true, be aware that your credit rating can be a factor in figuring insurance premiums and do your utmost to keep your credit rating high.
Ways and Tips on How to lower your Car auto insurance costs

6. Pay-As-You-Go Insurance

If you’re a safe, low-mileage driver, a usage-based insurance program may be available to you, such as Allstate’s Drivewise, Progressive’s Snapshot or State Farm’s Drive Safe & Save.

By signing up for these programs, you let your insurer track your driving in exchange for possible discounts, based on how much you drive, when you drive, and how well you drive.

If you drive less than 10,000 miles a year, you might be able to save money with this type of program.

7. Discounts for Anti-Theft Device

Individuals have the potential to lower their annual premiums, sometimes by as much as several percents, if they install anti-theft devices. 

Your insurance company should be able to tell you specifically which devices when installed, can lower premiums. Car alarms and LoJacks are two types of devices you might want to inquire about. 

If your primary motivation for installing an anti-theft device is to lower your insurance premium, consider whether the cost of adding the device will result in a significant enough savings to be worth the trouble and expense.

8. Use Mass Transit

When you sign up for insurance, the company will generally start with a questionnaire. Among the questions it asks might be the number of miles you drive the insured automobile per year.

If you use your vehicle to commute three hours to work every day, you will generally pay more in insurance premiums than someone who only drives one mile a day. 

If possible, try to use mass transit to rack up fewer miles, keeping in mind you will usually have to decrease your mileage significantly before incurring a discount. Ask your insurance company about the company's different mileage thresholds so your efforts won't be wasted.


Hope this article can help you to lower you car auto insurance if properly followed.
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