Struggling to pay premiums on your car insurance? Don't worry: most driver's can easily lower the cost of their insurance by making a handful of simple changes. All you need to know is how to navigate the insurance market to find better deals, and that's where we come in! The following tips will help you save huge sums of money while still selecting a policy that works for you:
A Surefire Path to Lower Premiums:
Depending on who sells you your insurance, you may qualify for a wide range of discounts that you didn't even know about, which can send your premiums through the floor.
There are three key ways to lower the cost of your car insurance:
1. Safer cars- If the vehicle you drive has improved safety features or does less damage to the environment, your insurer may be willing to offer you a discount. Important features include:
Hybrids
Seat belts that activate automatically
Airbags for the passenger seat
Alternative fuels
An anti-lock braking system
2. Safer drivers- If you've demonstrated that you are unlikely to get in an accident, insurance companies will give you a discount. The following behaviors will help you do this:
Having a B grade or better
Having a low-risk job
Ask your insurance company which jobs it considers low-risk
Passing a
Driving safely and avoiding accidents
Joining an auto club
Reducing the number of miles you drive each year
3. Combined policies- Companies that offer different kinds of insurance will reward clients who buy more than one policy, sometimes by loweirng their premiums by as much as 30%! If possible, consider buying auto, life, and homeowner's insurance from the same providers.
Comparing Deals
When comparing potential insurers, take into account the opportunities that each one offers for discounts. Some companies offer few such opportunities, while others provide you with lots of ways to pay less.
The best way to find policies that will both fit your needs and help you save money is to compare as many insurers as possible. If you fail to do this, you could overlook some great bargains. The three keys to comparison shopping are:
Asking an independent insurance agent (who can show you quotes from many different insurers)
Calling an agent from each insurer and discussing the company's policies directly
Comparing premiums online
While it's important to consider discounts, make sure to also take starting premiums, coverage, and all other aspects of your insurance agreement into account before choosing a provider.
Other Tips
Besides potential discounts, consider the following factors before deciding on a provider:
A.M. ratings- The better a company's rating, the more likely it is to reward your insurance claims fairly.
Comprehensive coverage- Make sure you fully understand the terms of your coverage before you accept a policy.
Speak to an auto insurance agent about the limits of different coverage agreements to be sure you have protection from likely accidents.
Make sure the policy you purchase provides you with the minimum amount of coverage required by law.
Customer service- Find a provider whose clients are generally happy with the way they are treated. Call the Insurance Department for your state or go online to compare different companies' customer service records.
Starting premiums- Discounts are great, but don't let them fool you into choosing a policy with unreasonably costly starting premiums. It's essential to take both original premiums and potential discounts into account when looking for a policy that meets your needs. Quotes vary wildly from one company to another.