Auto insurance – top ideas to reduce premium rates


Auto insurance is the most important requirement other than the driving license, to drive on the roads of USA. There are many insurance policies that can be chosen in the package depending upon the needs of the driver.  But regardless of the policy chosen, reducing the premium rates is on every policy holder’s mind. But cutting out on insurance policies because of the premium rates is not a wise idea. Buying the necessary policy is very important to be completely protected on the road. When the need comes, it saves a lot more money than paying low premiums monthly and having insufficient coverage.

There are many ideas to reduce premium rates by getting regular discounts on monthly premiums. Some of them require time and patience, but will benefit the policy holders in successfully bringing down the premium rates.


Driving safe on roads has its benefits in reducing premium rates as well. If the policy holders have a clean driving record for one complete year, the insurance company gives great discounts the following year on their premium rates. If the driver commits a traffic offense and gets a ticket, then the premium rates can go sky high until the driving record is clean again. This factor is completely under the control of driver, so it can be effectively used to get discounts on premium and get the coverage wanted.


Sometimes, updating the model of the car can earn discounts in the premium rates, because newer cars are safer cars according to insurance companies. Insurance companies maintain a list of cars that are considered safe on roads, and those that are considered unsafe. This list depends on the previous statistics of the performance of the cars, and the number of accidents that particular model was involved in. Before buying or updating the car, consulting the list of safe cars is a good idea to save some money on the premium rates.

Signing up:

Many insurance companies give discounts on premium rates as a sign up bonus. Signing up during the discount season or changing insurance companies during the discount season is a good idea to save some money. Also, reviewing the insurance policy once every year helps in making necessary changes and buying only the policy that is needed. Signing up in group insurance policies can earn extra discounts in terms of monthly premium for the entire group members. Insuring multiple cars together can be another way to save some money every month. Families can get policies together for their cars and get discounts for the policies of the entire family.

Cutting back on insurance can mean fewer premiums every month. But when it comes to shelling out the money in the unlikely event, a lot more goes out of the pocket that the money that is saved every month. Different insurance companies have different rules on deductible amounts. Checking with the insurance company is necessary because fewer premiums can mean higher deductibles. Deductible is the amount the goes from the pocket of the policy holder in the event of filing the claim, so choosing low deductibles over low premium rates is always wise.