10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy can cost a few hundred dollars to a few thousand dollars a year. And the insurance rates you pay are hugely dependent on the insurance company or agent, your age, your car type, your driving record, and even the area you reside in!

You should never go without auto insurance though, despite the costs. Almost all the states require you to protect yourself with a minimum amount of liability coverage. Naturally, the bare minimum is not adequate enough for the average car owner. And as you add in additional coverage for your car, you realize that you will be paying a fairly large sum annually.

So, understanding auto insurance can actually help you to decide on a suitable insurance policy that won't vacuum clean your wallet! Here, we have gathered 10 of the best tips for lowering your auto insurance, by as much as 40%!

Always compare insurance policies. There are states which regulate auto insurance rates, but the insurance premiums can vary by hundreds of dollars for the exact same coverage. It is definitely worthwhile to shop around. The first thing you can do is to check with your state insurance department. They often provide information about the coverage you need, as well as sample rates from the biggest companies. You can also ask your friends or look up the yellow pages. Checking consumer guides and asking insurance agents can pay off as well. You can easily find out the price range for your insurance policy, as well as discover the lowest prices in town.

However, you should not be shopping based on price along. The insurance company should provide good service at the best price. Excellent personal service is available as well, and they provide added conveniences, although they cost a fair bit more. Ask the company how you can lower your costs, and also check their financial ratings. The rule of thumb is always to get three price quotes from three different companies, and pick the one with the best value.

It can also be a good idea to increase your deductibles. When you file a claim, the deductible is the amount you pay before the insurance company pays for the rest of the damage. A higher deductible on collision and comprehensive coverage can lead to a much lower premium. For example, increasing your deductible from $200 to $400 can reduce your premiums by up to 25%. However, you must ensure that you have the financial resources to handle the largest deductible when the time comes.

Remove certain types of coverage from your policy. Almost all the states require liability coverage for your car, but the rest of the coverage is probably dispensable. However, you do not want to be underinsured if you're in an accident, so it isn't advisable to remove all of your additional coverage. Optional coverage includes medical payments, uninsured motorist, collision, and comprehensive coverage.

Drop collision and comprehensive coverage for older cars. If you drive an older car that's worth less than $2,000, it's probably more cost-effective to drop collision and comprehensive coverage since you'll probably pay more for the coverage than you'll collect for a claim. You can find out the worth of your car by asking auto dealers and banks.

Make sure your credit report looks good. Car insurance companies often look at your credit history as there is a correlation between the risk to the company and your credit history. If you pay your bills on time and maintain a good credit history, you can enjoy lower insurance rates.

Drive less. Insurance companies often offer low-mileage discounts to motorists who drive less than a predetermined number of miles each year. You can use public transportation more often, car-pool with friends, and take the train or a plane instead of driving to another state. And you'll save on more than your coverage as you'll need to spend less on gasoline (of which prices are incredibly high).

Maintain a clean driving record. The company will give you a price break and you can save on your insurance policy after a specified period of a clean driving record. This means that you have no accidents, no serious driving violations etc, during this period of time. The simplest and surefire way to qualify for this discount is to drive carefully and defensively all the time.

Choose a low-profile car. Insurance rates vary among difference models of vehicles. Generally, sports cars and high-performance cars tend to cost more to insure, mainly because they represent more risk of theft and the drivers are often the people who drive more recklessly. Newer cars will cost more to repair or replace than older ones, so naturally they can more to insure. Low-risk vehicles include station wagons and sedans.

Ask about safety and security discounts. The insurance companies sometimes offer discounts on your insurance if your car is equipped with the following: anti-lock brakes, air bags, automatic seat belts, car alarms, tracking systems. These reduce the injury risk to you, as well as the chances of your car being vandalized or stolen.

Finally, ask about other discounts. You may receive a discount if you buy more than one type of insurance from the same company or if you insure multiple cars under the same policy or company. You may also receive discounts for taking a defensive driving course, staying with the same company for a few years, being a driver over 50, good-student discounts, and being an AAA member. If you already have adequate health insurance, you can also eliminate paying for duplicate medical coverage, thus lowering your personal injury protection costs by a substantial amount.

Pete Lance is the founder of http://www.USGasTracker.org, a premier company which helps the consumer save money on gasoline. Thousands of gas stations across the nation are tracked daily to guarantee the lowest prices on gasoline anywhere in the United States.

---

Consequences of Late Insurance Payments

Did you realize that it could cost you more than a late fee when you make your insurance payments late? That's right, not only will you incur... Read More

California Catering Truck Insurance

Catering truck insuranceNot many agents/brokers write catering truck insurance as they don't have a contract with companies that will write that type of coverage. There's a certain... Read More

Family Health Insurance Plans - How to Find The Best Provider Online

Family health insurance plans typically need to offer more coverage than plans for an individual. Regular check-ups and occasional emergencies need to be covered, especially if you... Read More

Group Term Life Insurance and the Options Available

Group term life insurance is more affordable than individual life insurance policies because the costs to the insurer are lower. They have less paperwork to handle, and... Read More

Medical Bankrupticies: What You Can Do To Protect Yourself

First the bad news: about 2,000,000 personal bankruptcies each year are caused by unexpected medical expenses. Of all those people, 1,500,000 have (or had) health insurance before... Read More

Filing Homeowners Insurance Claim Forms: What Steps to Take

Filing a homeowners insurance claim can be done with ease if the proper procedures are followed correctly. Periodically reviewing your insurance policy and keeping up to date... Read More

Life Insurance: Who Needs It And How Much Do You Need?

Your friendly, neighborhood life insurance agent is most likely to answer this question with the word "everybody."The fact is, not everybody does need life insurance. If you... Read More

Do An Auto Insurance Comparison And Benefit From The Savings

It is very important to do an auto insurance comparison when you need insurance for your vehicle. Even if you are happy with the quote you get... Read More

Health Insurance Plans - Benefits to Different Plans & Providers

Health insurance plans vary in their coverage and prices. The more coverage offered, the higher the premiums. This doesn't mean that the lowest premium is the cheapest.... Read More

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance is an issue. With first time insurance costs running to several thousands of pounds in some instances,... Read More

Why Should I Go To A Life Insurance Broker?

A life insurance broker is a dedicated person that encourages and listens to the needs and wants of a person looking for life insurance. It doesn't matter... Read More

What is Car Insurance?

Car Insurance is compulsory in the UK. You are required by law to have a policy to cover your liability to other road users.The Road Traffic Act... Read More

Finding Fast Life Insurance

Since the widespread growth of internet usage and database building it's never been easier or quicker to find fast life insurance. There was a time not long... Read More

Life Insurance Leads, Insurance Leads, and the Online Lead Generation Business

I've long wanted to write an article about Internet Leads (Life Insurance Leads, Health Insurance Leads, Homeowner's Insurance Leads, etc) and why they are a waste of... Read More

Long Term Care Insurance How Much Should I Buy?

Long-term care insurance policies have a variety of features and it pays to shop around. It is quite easy in the final years of your life to... Read More

Life Insurance Information

Life insurance is a personal insurance plan designed to pay out a sum of money on the death of the policyholder. Life Insurance is an insurance that... Read More

Whole Life Insurance - Whole Life Insurance Information

The original purpose of life insurance was to provide for your family in the case of your death. While this purpose is still the most potent reason... Read More

Life Settlement Overview

A "Life Settlement" is a lump sum settlement paid to the owner of a life insurance policy by one of many funding sources in exchange for the... Read More

Hidden Ways to Cut Car Insurance

Consumers are countering rising gasoline prices and other vehicle operating costs by capitalizing on lower auto insurance rates, according to leading insurers.Auto policy costs and regulations vary... Read More

Saving on Auto Insurance: The Road to Reduction

The road to saving on auto insurance is something that every consumer travels at one time or another. And the quest is really not as difficult as... Read More

Do You Know What The 7 Home Insurance Plans Are?

Most people don't realize that there are 7 different homeowners insurance plans that insurance companies can offer. Each plan is different from the other 6 based on... Read More

Six Ways to Cut the Cost of Your Auto Insurance

Is your auto insurance bill $12000 a year or even higher? It's not unusual for auto insurance to cost this much these days. But it doesn't necessarily... Read More

Life Insurance Benefits

Life Insurance is a legal contract between you and a life insurance company with the purpose of providing an income to spouse, children or other beneficiaries in... Read More

10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy can cost a few hundred dollars to a few thousand dollars a year. And the insurance rates... Read More

Millions of Americans have No Life Insurance

Only 61% of adult Americans have life insurance (down from 70% in 1984).Only 41% of adult Americans have individual life insurance, many rely on group insurance leaving... Read More

Motor Vehicle Accident Insurance Claim Guide

This is a FREE Insurance Claim GuideYour "Motor Vehicle" can be a truck, car, motorcycle - - you name it! If it's powered by a motor and... Read More