Auto Insurance Savings Tips - Guaranteed Steps To Dirt Cheap Car Insurance Rates
1. Drive CarefullyOne easy way to make sure you pay less is being careful every time you're behind wheels Please, ensure that you make it a policy to NOT drive if you so much as sip any alcoholic beverage. If you're convicted for driving under the influence (DUI) you'll NOT see affordable rates for a very long time. While alcohol-related traffic offences have very immediate and serious repercussions… …speeding tickets will also affect your rates negatively if they pile up. So, if it's a violation of traffic laws, avoid it no matter how negligible it may seem at the time.
2. Maintain an excellent credit rating It might seem unfair to most people but your credit rating does affect you rate. A poor credit history will cost you in higher auto insurance rates For most insurers it shows a pattern they believe you are quite likely to repeat with them in premium defaults. This assumption of high risk makes such individuals attract very high rates in auto insurance and other insurance policies
3. Insure all your vehicles with the same insurer
You can reduce your rates by positioning yourself for a multi-vehicle discount. It is advisable to insure all your cars with the same insurer unless you get a much better rate for one of your cars with another insurer Doing some shopping and then comparing with what you'll get from a multi-vehicle discount is a good way to be sure if this serves your best interest. But that said; insuring more than one vehicle with the same carrier will always get you a nice discount.
4. Hold all your policies under one roof
Buying multiple policies from the same insurer is one smart way to reduce your premium. For example, buying auto insurance from the carrier that underwrites your home insurance policy. However, note that you may be better served if you buy your different policies from different carriers that offer the best rate for each policy. Do extensive comparison shopping with quotes sites. Compare what you will save if you go for a multi-policy discount with what you’ll save by going for individual carriers with the best rates. Make your choice only when you are sure of which is more beneficial.
5. Stay claims-free
Staying claims-free for three years and above will get you a discount. But bear in mind that NOT all insurers offer this discount. If your agent says they don't offer this discount let him or her know that you will switch to another insurer. Believe it or not, every insurer likes having people who stay claims free for this long as policy holders… …You shouldn't have any difficulty getting better rates with a host of other insurers. Most insurers will do all within their powers to ensure they don't lose you and this should lead to some compromise on their part.
6. Drop collision and comprehensive on old vehicles
You're certainly paying too much if you have collision and comprehensive coverage for an old car that is not a classic. Your car's Kelly Blue Book value at the time of a claim (and not the value of the car when you bought it) is what determines what you'll get from your insurer. This means that not minding how much you paid and for how long you did, you may get $500 if the book says it's only worth that much by the time you file a claim. Do the smart thing and take them off your car insurance policy. Doing this will save you much and not compromise you in any way.
7. Make your deductible as high as possible
The higher your deductible amount, the lower your premium will be. Therefore, it makes sense to choose a deductible that is as high as possible but always within easy reach for you. You are bound by law to contribute this amount. So go as high as you can but keep it within your reach.
8. Slash your mileage by every fair means
Drive as little as possible. It will lower your mileage and get you a low mileage discount. This applies more to those whose work and location make it easy for them to use the public transit system. Walk whenever possible. Apart from the fact that it is good for your health, it will also help keep your mileage down. Carpooling is another smart way of reducing your mileage.
9. Get and maintain high grades
It is a fact that young drivers attract very high rates. For those who fall within this age bracket, getting good grades at school will go a long way to help you get more affordable rates. There is a discount know as the Good Student Discount… This discount is for students who get A's or a minimum of B's. It attracts a discount of about 5 percent. This is so because insurance providers think there is a correlation between good grades and a young driver's behavior behind wheels Students who maintain excellent grades are generally considered more responsible and less prone to reckless driving.
10. Take refresher courses for the elderly
Are you a senior citizen? Then you can reduce your rate if you take courses designed for older drivers. You can reduce your monthly premium by as much as 10% once you pass any of such courses. To find out the finer details of how this works and how much you can save with your insurer, consult your agent.
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11. Ask for a retiree discount
Retirees are offered a special discount by a good number of insurance companies. You'll hardly drive as much as you used to do once you are retired thus lowering your mileage. A person's total mileage is a strong factor that determines how much they pay in premiums. So this discount is certainly not one any retired person should overlook. So it's a good thing to ask your agent. And, if your agent tells you they don't have this kind of discount, do your best to report the dramatic change in your mileage. Unless the change in your mileage isn't significant, you should shop for another insurer if you don't get a decent discount.
12. Install theft-deterrent devices
There are many anti-theft or theft-deterrent devices like alarm systems, automatic gas cut-off system and so on. The risk of theft is an important factor that goes a long way to determine your rate. And since these reduce such a risk, you'll attract a good discount if you have them installed… Thieves prefer unprotected cars.
13. Join an auto club
A good number of insurers will give you a discount if you join an auto club. Even if this discount is very small it's still some savings for you.
14. Get a discount for your affiliations
You can get discounts from a good number of insurers if you're part of associations especially the bigger ones. It makes sense for an auto insurer to give group discounts to an association that has a large membership. Bearing this in mind, you'll do well to check if there are discounts for any associations you're part of.
15. Get a discount for your college student
Does your child not use the car for a considerable period of time? Then you can get a discount for this. Take advantage of this if your child is in college. Just note that not all insurers offer this discount.
16. Avoid expensive vehicles
There are cars that cost much more to give adequate auto insurance coverage. It will help a lot if you ask your agent before choosing your next car. Don't buy a car that has a high theft rate and/or a poor crash rating. Also consider the cost of maintaining a car since it is also a factor that determines your rate. With diligence you can avoid buying a car that will make you pay much more in extra premiums over time.
17. Go for a safe vehicle
You'll pay less if you car has a higher safety rating. Opt for cars that have features that increase safety. You'll be eligible for a Safe Vehicle discount if your car has such features. Examples of these safety features are air bags, automatic seatbelt, ABS brakes and daytime running lights. Your agent can give you a list of features that will get you a discount with your insurance provider.
18. NOT driving your vehicle all year round?
Get Storage insurance Paying for a regular auto insurance policy on a vehicle that you get to use seasonally is a waste of money. However, NOT having any form on insurance on it is too risky. This is because it could be stolen or damaged while in storage. So what's the way out? Your best option is storage insurance: It's NOT legal for driving on but it will ensure that you are protected against any loss or damage that may occur while it is in storage.
19. Take advantage of group discounts
If you work for a large company you could enjoy a group discount. If you've not asked, do. Insurance companies offer large organizations some discounts in the belief that such would attract members of that organization. That would save them on customer acquisition.
20. Look for an insurer that favors your profession
All vocations are not equal -- At least from the auto insurance viewpoint. An attorney attracts more expensive rates than an engineer. The rationale for such concessions is that some vocations have been proven to be better risks. Ask your agent if your vocation is eligible for certain discounts. However, the discount you'll be given varies from company to company. Therefore, go comparison shopping to find out which insurer favors you most.
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21. Move to an area that represents a lower risk It is cheaper to insure a car if you live in a rural area It makes sense to live in a less congested area if it fits your circumstance This is because the risks of vandalism, theft or... Collision… …are far less
22. Periodic reviews can make a big difference You might be able to bring down your rate if you take time to review your policy from time to time. Change is inevitable and happens without our permission but then we must NOT pay for things that changes have relieved us of… How many people, for example, remember to remove their daughters from their policies immediately they get married? The changes in your life might have qualified you for certain discounts. It might also no longer be in your best interest to retain certain coverage types. It would, therefore, do you a world of good to review your policy yearly or twice yearly. Finding even one thing that you no longer need on your policy and dropping it will save you something reasonable.
23. Avoid policy lapse
Do your utmost to always ensure your policy does NOT lapse. You'll pay more expensive rates for a long time if this happens to you albeit by mistake. Don't allow this mistake while switching because that's one situation where this happens to a lot of people. One way to be certain you do NOT make this type of mistake is to let your old policy keep running until you've confirmed that the new one is fully operational. Many people are paying more than they should just because they made this mistake. So do take care that you don't become one of them.
24. Stop insuring broken vehicles
Do you have a car you've not driven in months? Do you have a broken car? Are you still paying premiums on such a car because you did NOT remember to remove it from your auto insurance policy? As simple as this looks a lot of people end up paying thousands in unnecessary premiums because they don't remember to remove such cars from their policies. Don't make this mistake!
25. Don’t pay monthly. Pay yearly
If you choose to pay your premiums monthly, you'll pay higher rates. True, paying monthly might be less stressful but it is also less affordable. If you work with banks you will agree with me that each check you process is regarded as a transaction which attracts charges. For 12 checks (that is, your monthly payments) you'll have a total of 12 transactions. This means that transaction fees would be 12 times more for those who make monthly payments. Besides, there are also administrative costs that come with the monthly payment option. A good example of such is the expense associated
with sending out payment notices. These and more are then added to your rate thereby making it higher than if you paid annually.
26. Authorize an EFT for your payments
A simple but effective way of lowering your rate is by authorizing an EFT (Electronic Funds Transfer). This just means your insurer withdraws your premiums automatically from your account at specified periods without mailing you payment notices. This saves your insurer in many ways such as removing the cost of mailing payment notices and the cost associated with processing checks. Your premium is therefore reduced in line with the lower cost of providing insurance to you.
27. Drop your young driver from your policy Under-25 drivers get higher rates than any other age group. Worse still, if they are teenagers their auto insurance rates could be really high. Therefore, as much as possible, do not place such a driver on your own policy. You'll be made to pay very high rates if you do that. Sign an exclusion form that will allow your teen driver have his or her own policy. If a teen is keen on driving then they should be made responsible for at least the cost of their auto insurance. Teens who pay for their own auto insurance are more willing to take steps to bring it down. This, by extension, means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
28. Stay loyal and get discounts plus concessions Insurers give customers who have remained loyal a long term discount and accident forgiveness. Some insurers will give you up to 5% in discounts once you've been with them for up to three years while others will give you such a discount only when you've stayed for up to five. Most insurers will also NOT raise the rates of a long standing policy holder if they make just one claim. Insurers offer these as incentives to keep you with them since it serves them better too. But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer… Let's assume, that you are given a 5 percent (or $125) discount after your third year with an insurance company where your current auto insurance rate is $2,500. Also note that your rates may be raised to reflect the effect of inflation. But while you're at it, another insurer may be willing to give you a rate of $2,000 or less at the moment. Then it won't be wise to stay put because you want to qualify for a discount down the road considering that the expected discount is less than savings you'll get now if you change to another insurer. Believe it or not, most people can pay far less with another insurer if they'll only make out time to shop right. You can only know if this is true for your profile when you obtain and compare quotes from a good number of auto insurance companies to see where you'll gain more.
29. Don’t falsify your details Make sure you do NOT give false details when you complete your forms. Insurance fraud costs us all. It's been estimated that insurance fraud adds up to $1,500 to the average family's insurance premium annually. You can save us all this extra burden by representing your details truthfully. If you couldn't care less about the cost to everyone in general, don't forget that your insurer is free to cancel your policy on the grounds of false representation. You'll then lose in a very big way. Insurers increase your rates by a good margin once you've let your policy lapse or had it cancelled for reasons like this.
30. Don’t duplicate coverage! You might be duplicating coverage and paying more unnecessarily… …If you have a very good health insurance coverage and also an extensive personal injury protection (PIP) coverage on your car insurance policy. If it's possible in your state, eliminate PIP totally in such a situation. For the rest of us, keep it at the minimum stipulated by your state laws. Why should you pay higher rates that will NOT translate into more benefits?
31. Avoid unnecessary add-ons Add-ons like towing raise your premium without giving you as much value as using a towing service. Have you checked to see if your credit card doesn't already offer this as added value? Overall, you're better off using a third party towing service than placing it on your auto insurance policy.
32. Park only in safe places Don't make the mistake of parking your car in places where it won't be safe. By safe I mean places where the risks of theft, vandalism or accidental damage are very low. Parking your car in a garage will help you reduce your rate over time. And, lest I forget, if you drive out in the night do your best to have your car parked in a well-lit area. This will deter thieves.
33. Don’t file petty claims We told you something about staying claims-free in part one of this series… Stay claims-free for more than three years and most insurers will give you a special discount. But here’s what we didn’t tell you… It does not mean you might not have any reasons to make a claim but that you choose NOT to file one. Therefore, if it's a minor case, handle it on your own. That is, if what you'll gain from a No Claims discount outweighs it. This is particularly true for people who are just a few months or a year away from becoming eligible for the NO-claims bonus.
34. Be a woman or let her own it Statistically, women are safer drivers. Married couples can take advantage of this by having their cars insured in the lady's name with the man as the secondary driver. Although this might not go down well with some male folks, it will help reduce what your family pays for auto insurance.
35. Buy your policy online Running a business on the internet is a lot cheaper than a brick and mortar approach. Compared to buying offline from a brick and mortar business, you'll save up to 15% if you buy your auto insurance policy online. Therefore, as much as you can, buy your car insurance policy online. However, do your utmost to present your details truthfully. If you try to cheat you'll lose big time on the long run… Your insurer will be covered by the law if they cancel your policy on the grounds that you misrepresented facts. Don't also forget to confirm your preferred insurer's rating and standing with your state's department of insurance and other financial rating institutions. This is to ensure you don’t fall into the wrong hands.
36. Don’t include rental car coverage unless… Do not include rental car coverage in your auto insurance policy without confirming if your credit card offers such a benefit. More often than not, you'll discover that your credit card provider has already given you this coverage as added value. You'll simply avoid duplicating coverage if you check before you decide if it's necessary to still add rental car coverage to your policy. Furthermore, do you really need this coverage type if you have more than one car?
37. Get more by paying less with an umbrella policy Reduce your Bodily injury liability coverage to the very minimum required by your state law and buy an umbrella policy instead. The more substantial your assets, they more this recommendation is true in your case. Just to ensure we all are on the same plate… …Bodily injury liability coverage takes care of passengers and the other driver in an accident that's caused by you. If this coverage type takes care of such liability issues, why is still recommended that you get an umbrella policy? The simple reason is that the liability coverage included in any car insurance policy is usually inadequate. This means that your personal assets will be taken if your liability coverage cannot handle the bills and damages incurred. However, there is hardly a law suit or liability issue that an umbrella policy won't take care of completely. You save on many ends with an umbrella policy… It helps you get lower rates, gives you superior liability coverage on auto related issues… …But still covers liability claims that may arise somewhere else, for example, your home. Price-wise, you get much more coverage per premium dollar with an umbrella policy... It could cost a 35 year old man in an area like New York City… …Around $300 extra to raise his bodily injury liability from $25,000/$50,000 to $100,000/$300,000 (The first amount in each pair shows the maximum amount that will be paid out to each injured person in an accident. The second amount shows the maximum that can be paid out per incident). However, with an umbrella policy, he'll spend less than that to get $1 million worth of coverage. And if he chooses to raise the coverage amount of his umbrella policy to $2 million dollars… …He'll have to pay only $75 more! But that’s NOT all… After the $2 million mark, he'll need to add only $50 to his rate per $1 million extra coverage amount. See? That's superior coverage for a lot less -- That's the advantage in adding an umbrella policy instead.
38. Become a defensive driver Defensive driving or any other special driving program approved by your insurer will get you discounts. The reason is simple: Defensive drivers are trained to drive safer. This is particularly important for high risk profiles. Being certified as a defensive driver will save a young driver thousands in premiums in a few years. Apart from the fact that this will help lower your rate, it will help keep you and others safer. Therefore, do your best to get trained in defensive driving from a recognized center. And, don't forget to tell your agent once you complete the course.
39. Ask your agents for all available discounts Take it upon yourself to ask your agent about all the discounts available to you with your preferred insurer. It is possible that your agent did not remember to tell you about some. You'll know only by telling your agent that you want to be sure you've been informed about every discount possible for your profile. You might be astonished at discounts you've not taken advantage of.
40. Make sure your VIN is accurate You might be overcharge if the VIN (vehicle identification number) of your car is entered incorrectly. While this might NOT be through any fault of yours, you might still get more expensive rates due to a mistake like this. Therefore, double check to ensure your vehicle's VIN is accurate on your car insurance policy. It's nothing complicated but could save you a lot of dollars.
41. Get married Although this may sound funny, you can bring down your rates by getting married. I know you won't get married just for this but when you do, it will save you a bit in auto insurance. It's commonsense that everyone becomes more stable and less reckless once they get married. This stability affects such a person for good when he/she is behind wheels. Insurers will tell you that their records show that married people make fewer claims. Furthermore, when they do make those claims, they usually cost less on the average than those by their unmarried counterparts.
42. Leave your car the way it was made! If you want to keep your rates down, do NOT "pimp your ride." Doing such reduces your car's safety and, therefore, warrants higher rates as far as your insurer is concerned. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
43. Don’t let your home cost you! It's easy to save a few hundred dollars on a home but lose thousands over the years on auto insurance because of its location. Also note that a neighborhood not too far away might fall under a lower crime zone than yours -- This affects rates. So check with your agent before you commit to a new home The truth is that most people don't think about this when they are about buying a home. But think about it…… If your new zip code adds up to $300 to your annual auto insurance rate… …How much would that amount to at the end of your 30-year mortgage?
44. Don’t be careless with your keys! If you must quickly get something inside, turn your car off, lock up and pocket your keys. Don't leave your car unlocked and running. This simple act makes it very easy for thieves. Every thief checks how easy a target is before making a move. It certainly doesn't get easier for a thief than an unlocked car with a running engine.
45. Be on your parent’s policy Using your parents' auto insurance policy is an option for you if you are an under-25. The fact that you are just of driving age means that your parents likely belong to a better risk age bracket. You have to bear in mind, though, that the vehicle must be registered in their name and you must be living with them if you want to take advantage of this option. If you do not like the idea of giving the car's ownership to them, and other stuff that may come with it, then you'll have to forget this option.
46. Opt for a "green" vehicle! The effects of global warming are real and the government is doing everything to mitigate its acceleration. So as an incentive to make the public buy vehicles that are friendly to the environment, many auto insurance carriers give cheaper car insurance rates to owners of such vehicles. Yes, you can't go out to buy a new vehicle just because you want cheaper rates but if you are in the market for a new car, note that going green will help you save on insurance.
47. Do extensive comparison shopping The difference in rate quotes from different insurers for the exact coverage type can range from a few dollars to over a thousand. There are a host of different insurers and the more thorough you are in getting a wide variety of rate quotes, the better your chances of making bigger savings. Take advantage of quotes sites and you will be able to compare quotes from multiple insurers at the same time.
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