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How to Lower Car Insurance Rates - Your Money Saving Guide

By Edited Nov 13, 2013 0 0
You Can Lower Your Car Insurance Rates

If you own a car, you'll not only spend for the increasing gas prices these days but also the insurance rates that you need to pay annually. It's important that you do your own research on how to reduce the costs on your auto insurance payments so that you can save your hard-earned money.

Moderately Challenging


    • 1

      Request for a multiple insurance discount. If you have more than one vehicle, this is something that you can talk about with your auto insurance provider. Call the agent who handles your home or renter's insurance because they may also offer you additional discount as a customer.

      Combining your auto and homeowner's coverage with the same company is a good way to receive additional discount and as a result, you can save more money. Never hesitate to ask for additional discounts when it comes to your car insurance because you may not know how much you could save just by talking to an agent.

    • 2

      Keep up a good driving record. The cleaner your record, the better your insurance rates. Insurance companies will usually check if you had been involved in accidents or had received some tickets. These are some factors that could create a bad impression on your insurance rates.

    • 3

      Drive less and save your hard-earned money. There are insurance companies that offer discount premiums from 8% to 30% if you drive fewer than 6,000-7,500 miles annually. You may check this with your insurer if they are offering this type of promotion.

      In order to receive an insurance credit, you could tell your auto insurance company that you're driving less to work since you had joined a carpool or constantly riding a public transportation. With the stiff competition these days, car insurance companies may even want to offer more for you especially if you're a loyal long-time customer.

    • 4

      Look for a price comparison website that has a reliable tool on how to reduce online car insurance. You can save a lot since they will let you view different offers from various companies when it comes to car insurance. All you need to do is research and have a list of all of them then you'll be surprised of the savings that you could get that may range from 50-70 percent in terms of payment reduction.

      Although savings could be higher, this will also depend on your personal situation including the car that you use. Other drivers try to lower their yearly premium by changing car insurance providers after they were able to compare how much they were able to save.

    • 5

      Find reliable websites that offer up-to-date consumer reviews so that you can look for an excellent insurance company. People who are contented and happy with their car insurance provider may write reviews online and this is a good way of finding some information too. Most of these popular car insurance companies can easily provide you a quote through their website, and has a good technical support.

      These insurance providers will usually ask for your zip code and some questions so that they can send your information to their agents located nearest to your area. Their agents will help you whatever you want to inquire about their services and discounts through fax, email or phone.

    • 6

      Discontinue the coverage on your old vehicle. If you have an old vehicle, you may want to consider cancelling the collision and comprehensive coverage since there is a possibility that you could pay more premiums compared to paying old car replacement. If you think that it may be best to save money to cover repairs for your old car rather than have it covered then go for it.

      Assess your car's value and decide if the annual coverage is worth paying for. You may also consider reducing or cancelling your collision and comprehensive insurance coverage if you're a safe driver without an outstanding loan. You need to balance things out by reviewing your collision and comprehensive insurance coverage prior to dropping it.

    • 7

      Verify your credit report because your credit history could affect your auto insurance premiums. Most auto insurance providers use an individual's credit information so that they can check if you were able to file a claim on an insurance policy. Take note that if you pay your bills late, there's a big possibility that you could pay higher premiums too. Keep up your good credit scores so that you'll earn lower insurance quotes

    • 8

      Call your insurance company and ask about other other additional discounts if you already have a high deductible. They may have discounts that can lower your insurance costs if you have more than one car insured to them, no moving violations and never had any accident in three years, have been a loyal and longtime customer and has a car with an anti-theft device with up-to-date and complete safety auto features.

      Some car insurance companies may even offer special discounts for older drivers including parents who are sending their children to college far away from home. You could save more money by just inquiring about these kinds of special discounts. These auto insurance companies would also offer discounts to students who are receiving very good grades including those drivers who are taking a defensive or driver training course.

      Other car insurance companies may also give a nonsmoker discount. This will entirely depend on your auto insurance provider but the more that they see you as a responsible person and a car owner, the bigger the chances that you can avail additional and special discounts from them.

Tips & Warnings

  • Inquire for special discounts if you have a profession that is not so risky compared to other types of jobs. There are well-known insurers that may offer 5-10 percent off your insurance if you'll qualify for such discount.

  • Raise your deductibles so that you can pay less premiums. By increasing your deductible from $300 to $500 then you could reduce the cost of collision and comprehensive coverage.

  • Volunteer or join civic or community organizations so that you could get more discounts. Spend your time helping other people in need and this can give you lots of benefits not only for the big possibility of a lowered car insurance rate.

  • Learn your own liability limits. Consider your situation, profession, age, assets, liabilities, and driving record before cutting your auto insurance coverage to the minimum that is allowed by your state.

  • Review everything with the auto insurance policy that you're dealing business with. Talk to your agent so that you'll be able to clarify anything and avail of their new offered savings.

  • Car insurance companies usually offer low mileage discount so check if you will qualify.

  • Check the services that you're covered because other car insurance companies will just sign you up automatically for additional services that you don't even need and it will cost you more on your annual premium.

  • If you want to shift to a different insurance company, be sure that there will be no discontinuity nor gaps in your plans so that it will not give you some hassles.



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