| Ways to Lower Car Insurance |
| Written by Frank Mccain | |
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The best time to shop around for car insurance is before you buy a new or used car. Different cars come with different insurance costs that aren’t all associated with the make of the vehicle. It’s true that sporty cars come with higher insurance costs, especially when combined with other factors that can raise the rates of insurance premiums, like a young driver. The price of the car and the car’s safety rating are a couple of the factors that can influence the insurance rates.
Of course, there are a number of ways in which to drop the cost of your car insurance rates to a lower dollar figure, with probably the most obvious being to compare quotes from various companies and potentially switch insurance carriers. Prices can vary between companies. Some companies have insurance agents, others use insurance brokers who can provide quotes from numerous companies, and still other companies will sell directly to the customer over the internet or phone. Regardless, you can get pricing information via phone or online from most insurance providers. Keep in mind that cost isn’t everything, and you should check on the performance of the companies also. You can get information to compare between the performance of companies by checking with consumer reporting agencies, consumer rating companies, and The Better Business Bureau. Don’t hesitate to ask people who they insurance their car with and what they think of their insurance carrier. Even if after you already have your car, and even if you’re with a car insurance company that you want to stay with, there are still other ways to drop that monthly car insurance premium lower. One method to change your monthly premium is to adjust other parts of your insurance plan that will have an impact on your overall cost. You can ask your insurance company for higher deductibles. A higher deductible can significantly decrease your monthly premium. Of course, you should also keep in mind that a higher deductible also means more money would have to come out of your pocket before your insurance would start to pick up the costs, should you ever need to use your insurance for repairs if you do have an accident. Many people have family coverage plans with numerous cars covered under the same insurance plan. If you are one of these people, you can also reduce your monthly insurance premium costs by dropping some of your coverage options or raising your deductible only on older vehicles that you may not drive as often. Knowing what your car is worth is a big part of deciding if it would make sense for you to drop certain aspects of your insurance plan on particular family vehicles. Older cars may not be worth fixing if they are damaged and you can justify dropping certain coverage on them just because the cost of repairing the car would be as much, if not more than buying another older car. Some insurance companies offer price breaks or discounts for customers that cover more than just one asset through the company. For instance, if you have a house, you could chose to cover both your house and your car with the same insurance company which can potentially give you a price break on both insurance premiums. Multiple car insurance plans can also be combined into a family coverage plan that will give you price break benefits as well. Taking advantage of policy discounts that are available, like low mileage discounts or good driver discounts, is another way to cut some money off of your monthly premium rate. Low mileage discounts are designed to give you a price break if you drive a lower than average number of miles in a year’s time. If your vehicle is a second car, you live very close to your job or school, or if you often carpool with co-workers or other students, this discount might work out very well for you. The good driver discount is designed to reward drivers who have been accident free or ticket free for a particular period of time. Check with different companies to find out what types of discounts are included with their insurance plans. It may be beneficial for you to switch insurance companies with the potential of achieving one of these discount options in the next 6 months or year. Still other methods for finding ways to decrease your monthly insurance premium costs can include other types of discount plans or plan provisions available. Some insurance companies offer rates that are specific to membership in a particular group or other type of civic association. There may be plans offered through your employer or a professional association to which you belong. Still other companies will offer discounts to customers who have a AAA membership, who have taken a defensive driving class, or to young drivers who completed a driver’s education course. |
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