How To Lower The Cost Of Your Car Insurance

Buying auto insurance is an important part of your overall financial planning. The auto insurance premium rate varies depending on the company and the type of policy coverage you choose to have. Here are some guidelines to lower the cost.

Shop Around - Compare the costs by shopping around at least four to five insurance companies and comparing the quotes. Take the help of your friends, relatives and yellow pages. Your insurance company should offer you a fair price and posses excellent service records. Check the of the company and compare that with others as it indicates the stability of the company.

Ask for higher deductibles - Deductible is the amount of money that you pay before making any claim for an accident. The collision and comprehensive coverage are sold with the deductibles. Higher the deductibles lower will be the premium rate. For example, increasing the deductible from $200 to $500 may reduce the cost by 15 to 30 percent.

Drop collision and comprehensive coverage on older cars - If your car is worth less than 10 times your premium in the current market, consider dropping the collision and comprehensive coverage.

Buy auto coverage from your existing insurer - Buy insurance coverage from your existing carrier. This may help you to reduce the cost. Sometimes low rates are available for the longtime customers.

Avoid double health coverage - If you think that you have enough health insurance, then make sure that you avoid a health coverage with your auto policy. This will help you reduce the cost.

Maintain a good credit record - Insurers generally use one’s credit history while determining the price of insurance. Statistically, the lower your credit score, the more you are likely to file claims. A person with a good credit score is more likely to settle the accident without the support of the company. Try to maintain a good credit record.

Discounts with low profile car - Cars that are expensive to repair or attractive to thieves will have a higher rate. Consider buying a low profile or average car as this might lead to your insurer coming up with discounts for such a car.

Take advantage of the low mileage discount - Obtain some discount on premiums by driving less than the national average mileage recorded per year.

Consult about group discount - Sometimes you can get some discounts on group plans provided by your employer, or a business group, or may be other associations.Find out whether such a plan is available.

Seek Car Safety discount - Some insurers offer discount if you keep your car equipped with air bag, anti-lock brakes, anti-theft devices, automatic seat belts and so on. Take advantage of this.

Article Source: http://www.moneyarticlelibrary.com

Evan T. Smith is a contributing writer to the Insurance Community

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