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Saving on Motor Vehicle Insurance


Saving on motor vehicle insurance has become easier with more and more Web sites offering free online quotes that you can have in as little as one minute.  By comparing these quotes, you can get the best deals based on the amount of coverage you require and rates.

Aside from this, you would need to know how insurance companies calculate motor vehicle insurance premiums.  Here are some ways to cut down on your premiums:

  1. Have a good credit score, or work hard to get a good credit score.  Insurance companies now give higher premiums on people with low credit scores because they are more likely to file claims rather than settling it themselves. 
  2. Keep your driving record clean.  A traffic ticket for a minor infraction could drive your premiums through the roof.  A minor accident could effectively double your premiums.  Show the insurance companies that you are a responsible defensive driver and you will be rewarded with lower insurance premiums.
  3. Have your motor vehicle insurance policy reviewed every year.  A less expensive car translates to lower insurance premiums.  That is why they would grant a red and flashy sports car a much higher premium than an old sedan.  The same is true for the same car year after year after year.  Because cars diminish in value every year, it makes good sense to have your policy reviewed every year so that your premiums would be reflecting the right market value for your car.
  4. Ask for a discount.  While it is true that insurance rates are about numbers and that haggling with your agent will be useless, they might be offering some discounts that you are eligible for but did not know about.  There is the “no claims” discount, which can lower your premiums by 10% if you have not made any claims on your car insurance for a period of three or four years.  If you are a student with good grades, you might qualify for some discounts as well. 
  5. Move closer to your workplace or arrange for a carpool.  This would effectively lessen the amount of time and distance you are driving on the road.  Not only is this great for the environment, but also for keeping your motor vehicle insurance premiums down.  It only makes sense that you have a lesser chance of getting into an accident if you are on the road less often.  Make sure you communicate this with your agent.