When deciding on an auto insurance company, your first impulse may be to simply look for the least expensive policy. But the insurance quote you receive will be based on many factors. You want to know all the ways to reduce cost while keeping adequate coverage. On the other hand, some choices that raise your cost may be wise ones in the long run.
The Internet is a great place to research auto insurance. All the major companies have websites. They give you quick and thorough information, even a quote on the coverage you have selected. Just put in the required information: make and model of your car, mileage per year, business or personal use, and so on. You will be asked for your location, your age, and possibly some other personal information. But you should never give your Social Security Number or other private information. The Internet is too riddled with scams and fake websites to entrust it with this.
In general, the Internet is very helpful in quickly researching what is available in auto insurance, but you are wise to contact a company by phone, or visit their local office, to complete the deal.
Here is one of the ways to save. Most insurers will give you a 10% reduction in premium if you bundle your auto and homeowner’s insurance together.
Another common deduction is if you drive less than 7,500 miles per year. This low mileage means you are exposed to risk less, and therefore expose the insurer to less risk. Be sure to claim this one if you can.
Theft prevention devices will almost always lower your premium. Again, these devices lower the insurer’s risk.
A great reduction available in most states is a 10% lowering of your rate after you take a safe driving course. These courses are widely available. One organization for seniors offers them at low or no cost. The 10% reduction lasts for three years, then you have to take the test again to renew it.
Almost any financial transaction is affected by your credit score. Auto insurance is no exception. It is all about risk. If you have a terrific record of paying your bills on time, the insurer sees little risk that you will pay your premiums on time.
A high deductible will lower your premium. But stop and think before you do this. It may mean a lot of out of pocket cost for you if you do eventually have an accident and need to file a claim.
These are some ways you may be able to reduce your auto insurance costs. You should take all the legitimate deductions you can, but without sacrificing the coverage you need.