Best Tricks to Lowering Your Insurance Rates

Best Tricks to Lowering Your   Insurance Rates

When shopping for cheaper insurance, do you get frustrated by the dozens of auto insurance providers? You’re not alone. You have so many options that it can turn into a burden to lower your rates.

It’s important to check auto insurance prices occasionally due to the fact that insurance prices change frequently. Even if you think you had the lowest quotes on coverage two years ago there may be better deals available now. Forget all the misinformation about auto insurance because you’re about to learn the fastest and easiest way to save on auto insurance.

This information will help educate you on how car insurance quotes work and some tips to save money. If you currently have a car insurance policy, you should be able to cut costs considerably using these methods. Vehicle owners only need an understanding of how to shop their coverage around over the internet.

Learn how to lower your auto insurance costs

Many different elements are taken into consideration when pricing auto insurance. A few of the factors are predictable like an MVR report, although some other factors are more transparent like your vehicle usage or how safe your car is. One of the most helpful ways to save on auto insurance is to to have a grasp of the rating factors that are used to determine the rates you pay for auto insurance. When consumers understand what influences your rates, this allows you to make good choices that could help you find cheaper rates.

The itemized list below are some of the major factors used by companies to determine premiums.

  • More traffic equals higher costs – Residing in less populated areas has it’s advantages when insuring your vehicles. Fewer drivers means fewer accidents in addition to lower liability claims People in densly populated areas tend to have much more traffic and a longer drive to work. The longer drive time translates into higher accident risk.
  • Older drivers pay less – Youthful drivers are statistically proven to be less responsible when behind the wheel so they pay higher auto insurance rates. Mature drivers are viewed as being more responsible, cause fewer claims and accidents and tend to be get fewer driving tickets.
  • High performance equals high premiums – The performance of the car you drive makes a significant difference in how high your rates are. The lowest premiums will normally be found when insuring smaller low performance passenger models, but other factors influence the final cost greatly.
  • Rates can drop if you have more than one policy – Most auto insurance companies will award better rates to people who have multiple policies with them such as combining an auto and homeowners policy. Discounts can add up to five, ten or even twenty percent. If you currently are using one company, you still need to shop around to make sure you are getting the best deal. Drivers may still save even more than the discount by buying auto insurance from a different company.
  • Alarm systems lower rates – Owning a car with an alarm system can help lower your rates. Theft prevention devices such as vehicle immobilizer systems, OnStar, and tracking devices like LoJack all aid in stopping auto theft and help lower rates.
  • Married drivers get better rates – Having a wife or husband may earn you lower rates compared to being single. Marriage usually means you are more mature and responsible it has been statistically shown that married couples file fewer claims.

Save a ton with these auto insurance discounts

Not many people think insurance is cheap, but you might already qualify for some discounts to cut the cost considerably. Some discounts apply automatically when you quote, but a few must be requested specifically in order for you to get them.

  • Senior Citizens – Mature drivers are able to get a slight reduction on a on coverage.
  • Auto/Home Discount – If you combine your home and auto policies and place coverage with the same company you may save over 10 percent off each policy depending on the company.
  • Discounts for New Vehicles – Putting insurance on a new car can save up to 30% because newer vehicles are generally safer.
  • Switch and Save Discount – Some companies give discounts for signing up before your current coverage expires. You could save around 10% when you .
  • Payment Discounts – If you pay your entire premium ahead of time instead of paying each month you can actually save on your bill.
  • Passenger Safety Discount – Factory options such as air bags and/or automatic seat belt systems could see savings of 20 to 30 percent.
  • Discounts for Federal Employees – Active or former government employment may reduce rates when you on coverage with a few auto insurance companies.
  • Sign Online – Many companies will give you a small discount for buying a policy and signing up on their website.

As a footnote on discounts, most discounts do not apply to the entire cost. Most cut the price of certain insurance coverages like liability and collision coverage. So even though you would think it’s possible to get free car insurance, insurance companies wouldn’t stay in business. car insurance

A few companies that have these benefits include:

Double check with each insurance company to apply every possible discount. Some credits may not apply to policies in every state. If you would like to see a list of insurance companies who offer auto insurance discounts, click here.

Switch companies and save? Really?

Consumers constantly see and hear ads that claim the best car insurance rates from the likes of GEICO, State Farm and Progressive. All the ads have a common claim that drivers will save a bundle just by switching your coverage.

But how can every company give you a lower rate? It’s all in the words they use.

Auto insurance companies have specific characteristics for the type of insured that earns them the highest profit. For instance, a profitable risk profile could possibly be a mature driver, carries full coverage, and drives a safe vehicle. Any new insured who fits those characteristics gets the lowest car insurance rates and will most likely save quite a bit of money when switching.

Consumers who don’t qualify for those standards will probably be forced to pay more expensive rates which results in the customer not purchasing. The ads state “customers who switch” not “everybody who quotes” can save as much as they claim. That’s the way insurance companies can confidently state the savings.

Because each company has a different risk profile, you should get as many as possible. It’s not possible to predict which insurance companies will have better premium rates than you’re paying now.

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And the best auto insurance company is…

As you prepare to switch companies, it’s not a good idea to sacrifice coverage to reduce premiums. In many cases, consumers will sacrifice comprehensive coverage or liability limits only to find out that the savings was not a smart move. Your goal should be to buy a smart amount of coverage at the best possible price, but don’t skip important coverages to save money.

Lower-priced auto insurance can be sourced online and also from your neighborhood agents, and you should be comparing both to have the best chance of lowering rates. There are still a few companies who do not offer the ability to get quotes online and these smaller companies only sell through independent insurance agencies.

Insureds change insurance companies for many reasons like not issuing a premium refund, being labeled a high risk driver, policy non-renewal or even denial of a claim. Regardless of your reason, finding a new company can be easy and end up saving you some money.