Top 7 Ways to Reduce Your Auto Insurance Costs

I’ve written other articles on how to shop around for Auto insurance in the past. My goal in this article is to go a little deeper into how you can reduce your Auto insurance. What follows are the top 7 things that you can do to hopefully reduce the cost of your insurance rates by a sizable amount.

1) The single most important thing that you can do to lower the cost of your auto insurance is simply to compare quotes from different insurance companies. At the minimum get three quotes, My personal preference is to get five quotes before I make a decision. You’ll be pleasantly surprised at how widely the prices vary between each provider. The easiest way to get a quote, free and very fast is to go online and use an insurance quote comparison site, sure beats calling the companies directly. I’ve included a link to one at the end of this article.

2) Ask about multi-coverage insurance. If you need to grab insurance for your house or health as well. You can negotiate a discount if you get them both at the same time. Kill two birds with one stone.

3) There are many discounts that the general public is not aware of but can be taken advantage of if you do your due diligence. These include “members of a professional organization” discounts, senior citizen discounts, student discounts, Auto insurance discounts through your employer, low-mileage discount, having taken a defensive driving course and even having certain safety features or theft devices installed in your car. The discounts are there you just need to ask about them.

4) If the reason you are shopping around is because your old policy is about to expire, you can often negotiate better terms with your insurance agent, they’ll often make some concessions in order to keep your business with them. Now I’m not inciting you to blackmail your provider, but more often than not they’ll go the extra mile if you threaten to go with another company at the end of your term.

5) Credit is king. Car insurance companies may run a report on your credit as a measure of how responsible you are with your payments. the higher your credit score, the better rates you will get. Therefore, you may consider bringing your credit score up a notch.

6) Although convenient, if you are strapped for cash you may want to forgo certain extras included in your premium such as towing services or loss of employment.

7) Stick with yearly policies instead of six-months policies. This is analogous to buying things at wholesale price so to speak and the more you get the less you’ll pay in this respect.

I’d like to conclude by saying that although price maybe a very important factor in deciding what kind of auto insurance to purchase, do not let it be your sole criteria. If you choose the wrong coverage and get into an accident,savings a few hundred bucks may not be worth the out of pocket expenses that you will incur. Do your research and compare quotes. You can start at this site and put everything i’ve wrote above into action and start saving today.