Auto Insurance 10 Ways to Lower Your Bill
- Get more than one rate quote. There are a host of web sites that allow you to make rate comparisons. Be careful that you have entered data that will result in a correct quote. Call company agents to be sure that you have a correct rate.
Ask independent agents how many companies they have rated your information with and ask for the rates and names of these companies. That will save you some time calling other companies.
- Go high on deductibles. If you are willing to increase your deductible, you can save between 25 to 40 percent on your comprehensive and collision cost. Be a good risk manager and consider the incident of loss due to where you live and how much you drive. It would be good to set aside some of the savings in case of a claim.
- Evaluate insurance cost before you buy your vehicle. The year, make and model can impact the cost of insurance. Over a period of time a certain vehicle can cost you a lot more to drive than other vehicles.
- Ask about low mileage discounts. If you drive one vehicle less than another be sure to request that mileage band for the low mileage vehicle.
- Ask about group discounts. Many companies offer discounts to policyholders who are members of organizations or professions such as veterans, engineers, state or federal workers. Remember every bit helps.
- Continue to ask for any other discounts. Companies have a host of discounts they offer to policyholders such as: automobile safety features, anti-theft devices, reduced rates for senior citizens, students with grade requirements and account discounts for other insurance coverage that you may have. Account discounts will have a great effect on your cost of insurance.
- Consider the cost of installment payments. Installment cost can be as high as $10 each! If you cannot afford to pay the full policy period, consider increased installment amounts to lower the frequency of installments.
- Consider the cost of comprehensive and/or collision on older cars. You could pay more in these premiums than the old car is worth. Even when using lower deductibles, multiply the cost of the insurance by 10. If you find out your old car is worth less than that, you are spending money unnecessarily.
- Impact of credit score. More and more companies are using credit score to determine rate. Be sure that you check your score on a timely basis so that there are no items on your credit history that do not belong to you.
- Finally, do not let your coverage lapse. It is not a great idea to get into an auto accident when your policy has lapsed; you also loose an important discount going forward for many years. Be sure to pay your bills on time or have automatic withdrawals from your account. If you are switching companies, be sure you have coverage with the new company before you cancel the old company.