So, do you feel that you are paying exorbitant rates as premium for your auto insurance? If you feel so, then follow these simple suggestions that can add a few savings to your pockets.
The first step to be taken by you is to shop around for the best possible insurance coverage you can get for the money. Gather quotes from various sources and make a comparison to know that the coverage you receive is the best for the available rate. Also, check on the time taken by the insurance company to process the claim, along with the financial stability of the insurance company. These companies have to be effective and efficient in dealing with your claims.
Typically, when you submit a claim the deductible is the amount paid by you before the insurer pays the remaining balance. Always go for a higher insurance deductible as the higher the collision and comprehensive deductibles, the lower is the auto insurance premium. It has been found that the savings you can make by increasing the deductible from $250 to $1,000 can be hundreds of dollars off your insurance premium. Identify the maximum deductible that can be payable by you before purchasing the insurance for saving money.
It may be sometimes feasible to remove or reduce the coverage on older vehicles. For a car worth $1,000, having a deductible of $1,000 may not be a profitable proposition. Compare and weigh the value of the car and the chosen deductibles to reap maximum savings.
Always take up the initiative to inquire about the discounts available. Depending on the insurer, where you live and whether you meet eligibility, etc. the amount of discount can vary. Some of the common discounts that can be taken advantage of by you are:
- Multi-vehicle discount available on multiple vehicles insured with the same insurer.
- Multi-line discount available for insuring home and auto with same insurer.
- Good driver discount to those who enjoy clean driving record for a long time
- Good student discount for students with good grades.
- Safe driver discount for those who have taken and passed an accredited driver safety course.
- Anti-theft discount for vehicles with certain anti-theft devices.
- Safe vehicle discount for cars with additional safety features.
- Retiree discount for those aged around 50 or 55.
- Low mileage discount for cars not driven often.
- Occupational discount for those working in a certain line of business or possess certain degree.
- Auto club discount for those who is a member of an auto club, like AAA.
- Association discount for those belonging to certain associations, like alma mater, and
- Away-at-school discount if your child is attending school out of town.
- If you are to buy a new car, purchase one with lower theft rates and repair costs as it brings the car under low risk category.
Above all, strive to maintain a clean driving record as tickets and at-fault accidents affect your insurance rates for years.