Four More Ways to Get Cheaper Insurance Rates


Would you believe me if I tell you that cheaper insurance rates is all about what you get rather than where to get your policy? It cannot be denied that cheap insurance policy is fairly limited in terms of coverage to compensate its premium. All insurance companies must be able to maintain their income and at the same time provide a feasible and realistic protection. You might have known that insurance companies would see your risk differently, hence, the differences in insurance quotations. But then again, they are still required to hold the same principle.

Obtaining a cheap car insurance policy will require evaluation on the type of coverage that you are looking for, and the amount you are willing to pay for such coverage. In light of this, we are going to discuss four factors that are known to influence the rates.

The type of vehicle you are insuring

Keep in mind that cheap insurance policies are only available for those vehicles considered as inexpensive. This means that it is almost impossible to use the cheap insurance coverage to protect your BMW or sports car. As the name implies, if you need cheap insurance, make sure that the vehicle you are ensuring is cheaply priced as well. While it is true that the age of your vehicle will affect the premiums, it is also possible that being a safe vehicle also yields the same results. For a vehicle to be considered us a safe one, do not forget to install safety devices such as steering wheel lock, side airbags, antilock brakes, etc. Also, do not forget to use a covered garage instead of using the streets as your parking lot.

Higher deductible

Another option to reduce your current insurance rates is to increase your deductible. If you do so, you are almost guaranteed to enjoy cheaper insurance premiums. In reality, you should only increase your deductible to a certain amount if you have at least three times of that amount in your bank account. This means that if you want to increase your car deductible to $1000, you must have at least $3000 safely tucked in. Keep in mind that no one really knows when accidents would happen. And, the fact that you are going to use your own money to pay for it, just make sure that this is a realistic and doable amount.

Pay it in full instead of monthly payments

If you have the option to pay for your insurance premiums in full, that would be great. Instead of paying on a monthly basis, if you do the former, you will be able to save as much as 20% off your insurance premium. Also, talk to your insurance company for other payment options that will give you similar price cuts. For instance, instead of paying for six staggered payments, if you pay it in three terms, you are going to get this much.

 Look for bargains

Lastly, we would like to encourage everybody to ask their insurance providers for bargains. If you have been a good customer for the past few years, do not hesitate to talk to your agent for some discount rates that your account may qualify. Nobody is going to be hurt if you telephone your insurer and air your concern.