By Pete Lance
Nowadays, auto insurance is really expensive. A typical
insurance policy can cost a few hundred dollars to a few
thousand dollars a year. And the insurance rates you pay are
hugely dependent on the insurance company or agent, your age,
your car type, your driving record, and even the area you
You should never go without auto insurance though, despite the
costs. Almost all the states require you to protect yourself
with a minimum amount of liability coverage. Naturally, the
bare minimum is not adequate enough for the average car owner.
And as you add in additional coverage for your car, you
that you will be paying a fairly large sum annually.
So, understanding auto insurance can actually help you to
decide on a suitable insurance policy that won't vacuum clean
your wallet! Here, we have gathered 10 of the best tips for
lowering your auto insurance, by as much as 40%!
Always compare insurance policies. There are states which
regulate auto insurance rates, but the insurance premiums can
vary by hundreds of dollars for the exact same coverage. It is
definitely worthwhile to shop around. The first thing you can
do is to check with your state insurance department. They
provide information about the coverage you need, as well as
sample rates from the biggest companies. You can also ask your
friends or look up the yellow pages. Checking consumer guides
and asking insurance agents can pay off as well. You can
find out the price range for your insurance policy, as well as
discover the lowest prices in town.
However, you should not be shopping based on price along. The
insurance company should provide good service at the best
price. Excellent personal service is available as well, and
they provide added conveniences, although they cost a fair bit
more. Ask the company how you can lower your costs, and also
check their financial ratings. The rule of thumb is always to
get three price quotes from three different companies, and
the one with the best value.
It can also be a good idea to increase your deductibles. When
you file a claim, the deductible is the amount you pay before
the insurance company pays for the rest of the damage. A
deductible on collision and comprehensive coverage can lead to
much lower premium. For example, increasing your deductible
$200 to $400 can reduce your premiums by up to 25%. However,
must ensure that you have the financial resources to handle
largest deductible when the time comes.
Remove certain types of coverage from your policy. Almost all
the states require liability coverage for your car, but the
rest of the coverage is probably dispensable. However, you do
not want to be underinsured if you're in an accident, so it
isn't advisable to remove all of your additional coverage.
Optional coverage includes medical payments, uninsured
motorist, collision, and comprehensive coverage.
Drop collision and comprehensive coverage for older cars. If
you drive an older car that's worth less than $2,000, it's
probably more cost-effective to drop collision and
comprehensive coverage since you'll probably pay more for the
coverage than you'll collect for a claim. You can find out the
worth of your car by asking auto dealers and banks.
Make sure your credit report looks good. Car insurance
companies often look at your credit history as there is a
correlation between the risk to the company and your credit
history. If you pay your bills on time and maintain a good
credit history, you can enjoy lower insurance rates.
Drive less. Insurance companies often offer low-mileage
discounts to motorists who drive less than a predetermined
number of miles each year. You can use public transportation
more often, car-pool with friends, and take the train or a
plane instead of driving to another state. And you'll save on
more than your coverage as you'll need to spend less on
gasoline (of which prices are incredibly high).
Maintain a clean driving record. The company will give you a
price break and you can save on your insurance policy after a
specified period of a clean driving record. This means that
have no accidents, no serious driving violations etc, during
this period of time. The simplest and surefire way to qualify
for this discount is to drive carefully and defensively all
Choose a low-profile car. Insurance rates vary among
models of vehicles. Generally, sports cars and
cars tend to cost more to insure, mainly because they
more risk of theft and the drivers are often the people who
drive more recklessly. Newer cars will cost more to repair or
replace than older ones, so naturally they can more to insure.
Low-risk vehicles include station wagons and sedans.
Ask about safety and security discounts. The insurance
companies sometimes offer discounts on your insurance if your
car is equipped with the following: anti-lock brakes, air
automatic seat belts, car alarms, tracking systems. These
the injury risk to you, as well as the chances of your car
vandalized or stolen.
Finally, ask about other discounts. You may receive a discount
if you buy more than one type of insurance from the same
company or if you insure multiple cars under the same policy
company. You may also receive discounts for taking a defensive
driving course, staying with the same company for a few years,
being a driver over 50, good-student discounts, and being an
AAA member. If you already have adequate health insurance, you
can also eliminate paying for duplicate medical coverage, thus
lowering your personal injury protection costs by a
About The Author: Pete Lance is the founder of
www.USGasTracker.org, a premier company which helps the
consumer save money on gasoline. Thousands of gas stations
across the nation are tracked daily to guarantee the lowest
prices on gasoline anywhere in the United States.Free daily
email with locations and prices.