1. Shop Around
If you 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 2 it probably makes sense to obtain quotes from other companies just in case there is a lower rate out there.
2. Question your Agent
It's Important to note that there may be other potential cost saving to be had addition to the ones described in this article. In fact, that why it often makes sense for you to speak directly with your agent or a representative of the insurannce company to ask if there any special discount that the company offer for individuals such as militiary personel or employees of a certain company. The Insurance company may also offer a "good student" rate or some other special saving. You never know what sort of discount pricing might be available for your circumstanse, but unless you ask, you probably won't able to take advantage.
3. 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. Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm (ex. homeowner's insurance). Check with your agent/insurance company to see if such discounts are available and applicable.
4. Keep A Clean Record
It should go without saying that the more accident or moving violations an individual has, yhe more he or she will tend to pay in terms of annuals premium. For those unaware, point are typically assessed to a driver for moving violation. Generally speaking, more points can lead to higher insurance premium (all else being equal).
5. Improve Your Credit Rating
A Drivers Record is obviously a big factor in determinig auto insurance costs. After all, it makes sense that a driver who has been in lots of accident could cost the insurance company lots of money. However, folks are sometimes surprised to find that insurance companies may also consider credit rating when determinig insurance premium. Why is a person's credit rating considered? The theory is that individuals who keep their financial situations in ship-shape condition will tend to be more careful when it comes to driving. Regardless of whether that's true, be aware that your credit rating can be a factor in figuring insurance premiums and do utmost to your credit rating high.
6. 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. 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. Car Insurance
7. Take Mass Transit
When you sign up for 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.
8. 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 than their more modern counterparts. Again, speak with your agent/insurance company to find out the exact rates to insure different vehicle you're considering before making a purchase. To learn more about choosing a cost-effective vehicle, see Wheels Of a Future Fortune.
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 palnning a move, potential change in your car insurance rate is something that you will want to factor into your budget.
10. Consider Raising Your Deductibles
When selecting 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.
11. 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. In any case, before making any such decision, consider speaking with your financial advisor and your agent/insurance company. Remember, every situation is different and the decision is up to you.
12. 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.
13. The Bottom Line
The Price of Auto Insurance is likely to continue to rise in the future. However, there are many things you can do to reduce the sting and hopefuly these 12 tips will have you driveng in the right direction.