Tips On Lowering Your Insurance Costs

By Author: Marcus Stalder
Total Articles: 491
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A lot of car owners are bothered by the necessity to cut their expenses. Either due to the infamous financial crisis or simply because the family budget needs additional money, more and more drivers are looking for effective ways to lower their insurance costs. And while some choose the risky way of dropping their coverage to bare minimums and even going underinsured, others think of the legal possibilities of getting adequate coverage for a lower price. Fortunately for the latter, there are ways to get exactly what you need for a smaller amount of money. And if you're one of such drivers, the following tips will certainly help you get competitive auto insurance offers:

Shop around

This should be on top of your list no matter what you're buying: auto insurance or a new TV set. With the abundance of possibilities and countless sources of products and services many people tend to forget about the money saving opportunities comparison shopping can provide. And in case of auto insurance, this means getting as many quotes from different providers as possible. Do not get the very first policy you run across, take some ...
... time to study the market and get at least five quotes from different auto insurance companies in your area. This alone can help you save hundreds of dollars each year. So why leaving this possibility behind?

Get all the discounts you can opt for

Discounts aren't what you'll typically hear about from your auto insurance provider but this doesn't mean that they are nonexistent. Most providers simply don't advertise them unless if they want to attract new customers. In fact there are a lot of various discounts you can opt for. First of all, if you are a student, you may apply for a good student discount if your average is of B and higher. But you'll have to provide proof of your good average every semester. If you install additional safety features such as read air bags, additional seat belts, anti-theft devices and others then you may also get a discount. However, ask your insurance provider about specific add-ons first before installing. If your yearly mileage is not that high and you use your car only on occasion then you can opt for low mileage discount. Most auto insurance providers have a limit of 10,000 miles per year for the driver to qualify for this discount. Drivers who went to defensive and safe driving courses may also get a discount. Finally, making part of a local auto club can also have its benefits since often a membership in such a club provides discounts to its members.

Increase your deductible

This measure is effective but if used incorrectly may lead to serious financial discomfort. A deductible is the amount of money you have to pay out of own pocket before the insurance coverage kicks in. And the higher is this amount the lower are your premiums. The standard deductible is set to $250 and by increasing it to $500 you can get up to a 20% drop in your premiums. You can push your deductible up to $1000 and get even lower premiums. However, always make sure that you can afford the deductible you have chosen, otherwise there's no real sense in having auto insurance you are forced to enter in debts just to get coverage with. So set your deductible respectively.