Reducing Your Insurance Rates

By Author: Marcus Stalder
Total Articles: 491
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There is a wide range of solutions for cutting down insurance costs for a car owner, a large part of these solutions being very effective in reducing the premiums.

First of all, think about the reasons for paying higher rates than you can for having your car insured. There's a set of discounts each insurance provider offers their customers that you can take advantage of and start saving money. And by shopping for insurance coverage in the Internet you can get up to 25% lower rates than through insurance agents.

Besides, it's very important to avoid any extras and endorsements with your policy that you don't really need. It's crucial to know the contents and the structure of your policy in order to learn what exactly you are paying for. If there are any things you think are unnecessary you should exclude them from your policy.

When applying for a policy, make sure that you're providing exact information concerning your personal car usage in order to make sure that your insurance company charges you for the precise mileage and driving history that you have. As an example, in case you don't use your car much ...
... and go to your work by bus, you should definitely inform your potential insurance provider about that, and you are likely to take advantage of a low mileage discount.

The same applies to additional safety elements of the car including airbags, seat belts, anti-lock brakes, alarms and engine blockers that will raise the safety of your car and subsequently reduce your insurance rates. In case you don't have some or any of these devices installed in your car you should really consider doing so, however make sure to ask your insurance provider about any specific requirements on such devices before actually purchasing and installing them in your vehicle. It might turn out that some items aren't eligible for providing you a discount so it will be only a waste of time and money buying them without asking your provider.

You can also get cheap car insurance if you keep the car on a driveway or in the garage and tell your insurance provider about it. Having a special place for your car, instead of keeping it on the roadside, lowers the risk of it being damaged by another car passing or someone stealing it.

Certain insurance companies offer cheap car insurance options for drivers who have passed additional safe driving courses and tests, and have documented their efforts. If you do not have any claims for some time you can also opt for a special no-claims discount, many insurance providers have. Some companies even have accelerated no claims options that require less time to build up a substantial discount, so make sure to ask your insurance agent or broker about that.

But the most effective way to get cheap car insurance is of course shopping around. If you are satisfied with your current provider it doesn't mean that you are forced to stay with them all the time. Review your policy on a regular basis, compare quotes from different providers at least once a year and switch companies if you think another provider is more suitable for you than the current one.