The deductible is the amount of money a driver will need to pay on a claim before the insurance company begins paying the rest. If you are in a good situation financially, asking your insurance company to raise your deductible can lower your monthly payments and lead to cheap auto insurance rates. Depending on how high you are willing to raise your deductible, your insurance premiums could be lowered by 15-40 percent. It is recommended that a driver set aside money to pay a higher deductible in case they need to file a claim.
Do some analysis of your vehicle, mileage, and financial situation. If you have an older vehicle, comprehensive or collision coverage might not make sense financially, especially if it costs more than the value of the car. Do some research on the sale value of your car, and make sure you are not paying more for insurance than you'd receive for a claim if the car were totaled. This can lower your car insurance bill significantly.
When purchasing a car, take into account that some cars are more expensive to insure than others. One attribute that can affect a vehicles insurance cost is how often cars of that type are stolen or targeted with a radar gun. Models that are frequently stolen or pulled over are called "high-profile" cars, and are usually expensive or flashy. Other attributes that can affect cheap car insurance rates are safety features. Cars with airbags, automatic seat belts, antilock brakes and other safety features are cheaper to insure, and safer to drive! Insurers also take into account the repair costs of certain car models, so it is important to consider buying a car with cheap and easily available parts. Before purchasing any car, talk with your insurance agent so you won't be unpleasantly surprised by expensive insurance.
Many insurance companies offer multiple types of cheap insurance policies. They often offer discounts to policyholders who buy multiple policies from them for different things. If you have a homeowner's policy in place, consider asking the insurer if they offer auto insurance and provide discounts for buying both policies from them. This is a common discount and could save you significant money on both policies.
Consider your mileage over the past few years. If you just drive around town, and put few miles on your vehicle, you may qualify for a low-mileage discount. Many insurance companies will charge significantly less if a policyholder drives less than a set number of miles per year. Make sure to tell your insurance agent if you think you qualify for a low-mileage discount.
Many insurance companies offer discounts for safe drivers, and there are multiple ways to qualify for this discount. Insurance companies often take your driving record into account, and if you have a clean record (no violations, DUIs, accidents) you will be eligible for a discount. Drive carefully; if you acquire tickets or get in an accident, your rates will increase. If you complete a defensive driving course and provide proof of this to your insurer, you may be able to get a 5% to 10% discount. More and more insurance companies are now using "telematics" or "black boxes" which you can opt to have installed in your vehicle to monitor your driving habits. If you drive safely with one of these units installed, the insurance company will reduce the cost of your car insurance. It is not recommended to have these installed unless you are confident in your safe driving skills.
Insurance companies have statistical data that shows them what types of people get into accidents. One of the attributes they look at is occupation, and they know that people with certain jobs get into more accidents than others. Certain jobs, engineers, teachers and doctors, have a lower accident rate, and insurers may offer discounts to people with those professions. Make sure you keep your insurer up-to-date with regards to your occupation, and ask them if you are eligible for a discount.
If you are a member of a group, such as a credit union, AAA, alumni association or employee of certain companies, you may qualify for a discount from certain auto insurance companies. Some financial institutions make deals with insurance companies, offering them more customers in exchange for discounts. Check with your bank or credit union to see if they have any of these offers. AAA also has partnerships with many insurers; customers can save 15% by being a AAA member. Schools and companies may also have these types of offers, so check with any group you belong to and see if you can save money through them!
Statistics show that drivers with good credit records tend to make fewer insurance claims, so insurers often adjust prices based on credit scores. When insurance companies take credit reports into account, they usually place more importance on how consistently a driver pays their bills; as opposed to the overall debt that driver carries. States usage of credit-data varies, but sometimes a bad credit score can increase a driver's payment by as much as 40%. Obtain your credit report and learn how to improve your credit score, it can save you a lot of money.
Every insurance company is different, and just because your neighbor got a good deal from his doesn't mean it's the best company for you. When looking for a new policy, get at least three quotes. Insurance companies often specialize in policies for certain types of drivers, so make sure you find a company that caters to your needs. Direct agents often have the best deals for good drivers, but if you've had a recent accident a major provider might be a better option. Be wary of substandard companies; check their ratings with groups like A.M. Best or Standard & Poor's. There are also some useful online services that can help you find the best deals on car insurance. Shopping around can lead to great savings, and is worth the time.