How Smartly to Save Auto Insurance

How Smartly to Save Auto Insurance

If buying a automobile itself was not stressful enough settling on a yearly extravaganza of its insurance is definitely one. We know auto insurance is a necessity but it necessarily does not mean lump sum fixed cost that is emptying your pockets as well as pushing up your stress levels. You need to study the market and choose the correct insurance that saves your money and keeps your driving experience pleasant.

1.Pick a Suitable Car

While buying a car along with considering style, comfort, fuel features also do consider its insurance costs. For better details call up the car salesperson and find out about the insurance costs for the selected car. Popularly. cars in the mid-sized category like the sedan, mini-van, mini-SUV cars come with a better deal as they provide more safety and less prone to accidents. Furthermore, cars that belong to the higher end usually mean higher premium too as they are more prone to theft, more expensive, more speed and more accidents. So while buying the car if you are more conscious of the premium you will have to pay for it then you might end up choosing the model that will help you save on insurance costs.

2. Maintain a Healthy Credit Report

Paying all your bills timely reflects more than just your personal traits it appeals positively to the insurance companies for you. Auto insurance companies usually offer a better deal to people with a better credit score. For instance, the length of your credit history, paying your bills on-time, not carrying high balances on your credit cards etc reflect your personal responsibility and whether you are worth taking a risk on. Moreover, it has been noticed that if you have a high credit score, an excellent driving history, and zero claims on your record, you will qualify for low rates easily.

3. Increase Deductible

Deductible means the money you pay on an insurance claim before the company starts paying you. Higher deductible lowers your insurance premium because the insurance company’s costs are reduced by the amount of these deductibles. Actually, having a high deductible on your insurance implies you will claim less, which means you are a lower risk to the insurance company, and can therefore be charged lower rates. However, this also means that you need to keep that cost for the deductibles in case of an accident or breakdown, with yourself untouched safely tucked away in some bank account so that you can reach out for it immediately when in need.

4. Sound Driving Record

Your driving record obviously affects your premium all through Accidents and tickets add points to your driver’s license and raise your rates. Many critics have analysed that getting caught for not wearing a seat belt, speeding up to 14 mph over, tailgating, reckless driving will not be approved by the insurance companies and will raise your insurance costs as high as 10-15%.

5. See Around for the Best Deal

One of the biggest financial mistakes most people often do is not to check for more than three insurance quotes before finalizing on the one. Studying around the market before finalizing is necessary. Moreover, after the first few years you can always look outward for better deals. One of the most common misconceptions is that renewing your car insurance policy with the same provider will be the cheapest option but, while this might have been the case up to a certain point, let’s not forget that things are constantly changing. One of the very few positive aspects of the current times is that it requires businesses to be very competitive in order to remain in the game; as a result, many car insurance providers offer attractive discounts for new customers, making it quite profitable to sign up with them instead of renewing insurance with the current provider. You can use the Internet to compare and study available offers and pick the best one.

6. Look for Possible Discounts

There are various other factors, relating to gender, age, smoker or non smoker, profession etc that can get you a better mileage to find a cheaper rate. For instance, if you are holding a driver's license for a long period of time you might bargain a better insurance deal. Again, adding safety features like air bags, anti-theft systems or anti-lock brakes to your car helps you gain lower rates from insurance companies. Another factor that is often overlooked is mileage. The more you drive, the higher the risks of an accident, so if you only use your car occasionally you may be eligible for another discount. You can opt for car-pooling or public transport also. Also older cars attract lower insurance rates hence opting for a second hand car also might prove beneficial to save an extra dollar.

Whatever insurance you are opting for be careful to read the papers well, to understand what you are paying for. Before finalizing, consult the agent and your finance consultant’s fro best possible results.

Brianne is a writer/blogger. She loves writing, traveling and reading books. She contributes on Hydroxycut