How to save on Auto Insurance
There are some things you can do that will help to keep your auto insurance costs as low as possible. Insurance premiums are based upon risk factors, which is the likelihood that you will be involved in an accident.
When shopping for an auto insurance policy, it's always wise to ask your insurance agent about potential discounts on the cost of your auto policy. With so much competition among insurance providers, you can benefit from inquiring about the 5 things listed below to secure the best car insurance policy for your budget and your protection.
Ways to Lower Your Auto Insurance Premium
Insurance companies look upon the following things when determining the costs of a liability insurance policy:
Ask your agent about Auto Insurance Discounts. Many insurance companies offer discounts for members of the Armed forces and their families, students discounts for good grades (a grade of B or better), seniors, accident-free drivers and motorists who complete an approved driver safety class.
Compare auto insurance quotes from several providers before making a decision. Just know that each insurance company has their own underwriting guidelines and what is acceptable for one company may not be acceptable to another. Some companies are cheaper for different driving histories.
Your premium lowers as your deductible raises. In most cases, the higher your deductible, the lower the premium you will pay. Simply increase your deductible and pay for small losses yourself. This way you can cut your insurance premium costs and still be protected against large losses.
The cheapest car insurance is just enough coverage to meet your state's requirements.
Bundling means buying more than one kind of insurance from the same company. When you insure your vehicles with the same company or combine your auto policy with another policy from the same insurance company (like renter's or homeowner's insurance), you'll likely get a discount on your premium.
Good students pay less for automobile insurance. If you are a teenager and earning good grades in school, you may qualify for a discount. Ask your insurance agent. You may find that being an honor roll student saves you money on your car insurance.
Careful drivers pay less for insurance. If you have speeding tickets or accidents, your insurance costs will go up dramatically. Be a careful driver and save on insurance.
The car you drive can also affect your insurance rates. Insurance companies place certain kinds of cars in special risk categories. You should ask your insurance agent before making a car purchase to make sure you aren’t getting a car that will cost you extra for your liability insurance.
Completion of an approved driver training course can sometimes save you money on your insurance.
Always review your policy or contact your agent to identify the limitations and exclusions of your coverage.
