12 Car Insurance Cost-Cutters

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• 12 Car Insurance Cost-Cutters

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• 1. Insure Multiple Cars/Drivers
• If you obtain a quote from an auto insurance
  company to insure a single vehicle, you might end
  up obtaining a higher quote (per vehicle) than if
  you inquired about insuring several drivers
  and/or vehicles with that company. This is
  because insurance companies will offer what
  amounts to a bulk rate because they want your
  business, and under some circumstances, they are
  willing to give you a deal if it means you'll
  bring in more of it.
• To obtain a discount, ask your agent/insurance
  company to see if you qualify and get a quote.
  Generally speaking, multiple drivers must live at
  the same residence and be related by blood or by
  marriage. Two non-related people may also be able
  to obtain a discount however, they usually must
  jointly own the vehicle.

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• 2. Keep A Clean Record
• It should go without saying that the more
  accidents or moving violations an individual has,
  the more he or she will tend to pay in terms of
  annual premiums. For those unaware, points are
  typically assessed to a driver for moving
  violations. Generally speaking, more points can
  lead to higher insurance premiums (all else being
  equal).
• 3. Take A Defensive Driving Course
• Sometimes insurance companies will provide a
  discount for those that complete an approved
  defensive driving course. Also, sometimes a
  driver can reduce the number of points he or she
  has on his or her license by taking a defensive
  driving, accident prevention or other course.
• Make sure to directly ask your agent/insurance
  company about this discount before signing up for
  a class. After all, it's important that the
  effort being expended and the cost of the course
  will translate into a big enough insurance
  savings. It's also important that the driver sign
  up for an accredited course.

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• 4. Shop Around
• If your policy has just been renewed and the
  annual premium has gone up markedly, consider
  shopping around and obtaining quotes from
  competing companies. Also, every year or two it
  probably makes sense to obtain quotes from other
  companies just in case there is a lower rate out
  there.
• However, remember that cheap doesn't always mean
  good and going with the lower-priced company
  isn't always the wisest decision. That's because
  the insurer's credit worthiness should also be
  considered. After all, what good is a policy if
  the company doesn't have the wherewithal to pay
  an insurance claim? To run a check on a
  particular insurer, consider checking out a site
  that rates the financial strength of insurance
  companies (such as A.M. Best). Financial strength
  of your insurance company is importnant but, what
  your contract covers is also very important so,
  make sure you understand your insurnace contract.

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• 5. Take Mass Transit
• When you sign up for Cheap Car Insurance, the
  company will generally issue you a questionnaire.
  Among the questions it asks might be the number
  of miles you drive the insured automobile per
  year.
• If you use your vehicle to commute three hours to
  work every day, you will generally pay more in
  insurance premiums than someone who only drives
  one mile a day. If possible, try to use mass
  transit to rack up fewer miles, keeping in mind
  that you will usually have to decrease your
  mileage significantly before incurring a
  discount. Ask your agent/insurance company about
  the company's different mileage thresholds so
  your efforts won't be wasted.
• 6. Select Your Vehicle Carefully
• Buying a huge SUV may sound exciting, but
  insuring a 5,000-pound, top-of-the-line vehicle
  can be more expensive than insuring a small (but
  safe) lower-cost commuting car. Also, older cars
  are often cheaper to insure than their more
  modern counterparts. Again, speak with your
  agent/insurance company to find out the exact
  rates to insure the different vehicles you're
  considering before making a purchase. To learn
  more about choosing a cost-effective vehicle, see
  Wheels Of A Future Fortune.

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• 7. Consider Raising Your Deductibles
• When selecting Cheap Car Insurance, you can
  typically choose a deductible, or the amount of
  money you would have to lay out before insurance
  picks up the tab in the event of an accident,
  theft or other type of damage to the vehicle.
  Depending on the policy, deductibles typically
  range from 250 to 1,000. The catch is that,
  generally speaking, the lower the deductible, the
  higher the annual premium. Conversely, the higher
  the deductible is, the lower the premium. Ask
  your agent/insurance company how your premium
  might be affected if you raised your deductible.
  In some cases, it may make the annual premium
  better by several percent and put some money back
  in your pocket other times, the savings may be
  minimal.
• 8. Improve Your Credit Rating
• A driver's record is obviously a big factor in
  determining auto insurance costs. After all, it
  makes sense that a driver who has been in lots of
  accidents could cost the insurance company lots
  of money. However, folks are sometimes surprised
  to find that insurance companies may also
  consider credit ratings when determining
  insurance premiums.

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• 9. Pay Attention to Where You Live
• It's unlikely that you will move to a different
  location (i.e., state) simply because it has
  lower car insurance rates. However, when planning
  a move, the potential change in your car
  insurance rate is something that you will want to
  factor into your budget.
• 10. Drop Unnecessary Coverage
• Dropping certain types of coverage can be a
  slippery slope. After all, nobody can predict if
  or when an accident will occur. However, if an
  individual is driving an extremely old automobile
  that's on its last legs, it may make sense
  (depending on the cost, the individual's driving
  record and other factors) to drop collision
  coverage. The reason for this is that were the
  vehicle to be involved in an accident, the
  insurance company would likely total the car. If
  the value of the car is only 1,000 and the
  collision coverage costs 500 per year, it may
  not make sense to buy it.

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• 11. Install Anti-Theft Devices
• Individuals have the potential to lower their
  annual premiums, sometimes by as much as several
  percent, if they install anti-theft devices. Your
  agent or insurance company should be able to tell
  you specifically which devices, when installed,
  can lower premiums. Car alarms and LoJacks are
  two types of devices that you might want to
  inquire about. If your primary motivation for
  installing an anti-theft device is to lower your
  insurance premium, make sure to consider whether
  the cost of adding the device will result in a
  significant enough savings to be worth the
  trouble and expense.
• 12. Question Your Agent
• It's important to note that there may be other
  potential cost savings to be had in addition to
  the ones described in this article. In fact,
  that's why it often makes sense for you to speak
  directly with your agent or a representative of
  the insurance company to ask if there are any
  special discounts that the company offers for
  individuals such as military personnel or
  employees of a certain company.
• Source investopedia.com/articles/pf/08/car-
  insurance-costs.asp

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