1. Shop all around
Prices differ from company to company, and it is advisable to look for the best price. At least get three quotes. Contact the companies directly or search for details on the Internet. The insurance department of your state may offer comparisons of rates that major insurers charge.
You purchase insurance to safeguard your financial security and give you security. It is important to choose a financially solid insurance company. Check the financial health of insurance companies with rating companies such as AM ) and Standard & Poor’s and consult consumer magazines.
Request quotes from various types of insurers. Some offer insurance via their agents. They are branded the same that the insurer. They may also sell insurance through independent agents that offer policies from various insurance companies. Others do not use agents. Direct sales are made to customers by phone or on the Internet.
Do not shop solely on price. Ask your friends and family for their suggestions. Contact the local insurance office to inquire whether they have information about consumer complaints filed by companies. Select an agent or representative who is willing to address your concerns. Use the checklist on page 2 of the booklet to assist you in comparing insurance quotes.
2. Before you purchase a vehicle check out the insurance rates
Before purchasing a new or used vehicle be sure to check the cost of insurance. The cost of insurance for cars is determined by the cost of the vehicle, its costs to repair it as well as its overall safety record and the possibility of theft. Insurance companies often offer discounts on features that decrease the risk of theft or injury. To help you choose which vehicle to purchase you can find more information through the Insurance Institute for Highway Safety ).
3. Ask for higher deductibles
Deductibles are the amount you have to need to pay before your insurance starts to apply. By asking for higher deductibles you could reduce your expenses significantly. For instance, raising the deductible from $200 to $500 can reduce the collision and comprehensive insurance cost by 15-30 percent. If you choose to go with a $1,000 deductible, it could save you 40% or more. Before deciding on the higher deductible, make sure that you have enough funds saved to cover it in case you make the need to file a claim.
4. Reduce coverage for older vehicles
Think about dropping collision or comprehensive insurance on older vehicles. If the value of your car is lesser than 10 times its value purchase, the insurance might not be financially feasible. Banks and auto dealers will be able to tell you the value of vehicles. You can also search online for it on Kelley’s Blue Book ( ). Check your coverage every renewal time to ensure that your insurance requirements aren’t changing.
5. Get your homeowners and auto insurance from the same insurer.
Some insurance companies will give discounts when you purchase two or more kinds of insurance. It is possible to get an additional discount if you have more than one car insured through the same company. Certain insurance companies lower their costs for customers who have been with them for a long time. It is nevertheless advisable to compare rates! It is possible to save money by purchasing from multiple insurance companies in comparison to multipolicy discounts.
6. Maintain a clean credit score
Building a credit history can reduce the cost of insurance. The majority of insurers use credit data to determine the cost of automobile insurance. Studies show that those who manage their credit effectively have fewer claims. To ensure your credit standing make sure you pay your bills on time, avoid obtaining greater credit limits than what you require and keep your balances on credit at a minimum. Review your credit score regularly and make any corrections quickly to ensure your record is always up to date.
7. Benefit from low-mileage discounts
Certain companies offer discounts to drivers who travel a less than average amount of miles in a year. Discounts for low mileage may also be offered to those who car together for work.
8. Find out about group insurance.
Certain companies offer reduced rates for drivers who have insurance through a group insurance plan offered by their employers, via professional, business, or alumni organizations or other organizations. Contact your employer and inquire with the clubs or groups you are a part of for information on whether it is feasible.
9. Find other offers
Companies offer discounts for policyholders who haven’t been involved in any incidents or violations in their driving over some time. It is possible to get an additional discount if you enroll in a defensive driving course. If there’s an under-age driver in the policy who is a great student, who has taken the driver’s education course or is attending college without a vehicle You may also be eligible for a reduced rate.
If you are shopping around ask about discounts on the following:
- Antitheft Devices
- Auto and Homeowners coverage through the same company
- College Students are away from home
- Defensive Driving Courses
- Drivers Ed Courses
- Good Credit Record
- Higher deductibles
- Low Annual Mileage
- Long-Time Customer
- There are more than one car
- No Accidents in 3 Years
- No Moving Violations in 3 Years
- Students with good grades who are drivers
The discounts listed may not be available in all states, or from all insurance companies.