Cracking a good deal when it comes to auto insurance is easy, once you know how it works. There are things your car insurer will keep you in the dark from, for their own benefit of course. Fortunately insurance premiums have hit a standstill, but that doesn’t mean you can’t still shave off a few dollars on your insurance premium!
Here are a few tips and tricks telling you how to:
Don’t settle for the first quote you get: Auto insurance companies are a dime a dozen; this plays out to the consumers’ benefit. You must get multiple quotes; some say five is a safe number. Always go directly to the company, cut out the middle-men and their hefty commissions which you pay for. A great way to do this is to go the website of a direct writer, and request for a quote. Compare all the quotes you receive and go for the best deal.
Discounts: Many auto insurance companies offer various discounts for students, retired people and at times even a Safety discount, which you can qualify for if your car has a specific set of safety features. If you haven’t changed your insurance provider in a few years, don’t forget to ask for a loyalty discount. Different companies offer different discounts, so don’t be afraid to ask the sales representative for details.
Never make a part payment on your premium: A premium paid in full is advantageous to both, the insurer and you. This helps you decrease on the total amount you pay by negating the need for installment fees. In fact another very good way to save a few dollars is to take a longer policy; your insurance company will appreciate this and offer you a lower premium.
Always drive safe: Auto insurance companies always dig into your past driving records to see if you have a history of bad or reckless driving. This also holds true if your friend crashes your car, it goes on the car’s permanent record, not his. Avoid tickets; a speeding ticket can affect your insurance premium for as many as 5 years!
Always terminate your old insurance policy: Many people presume that once their insurance tenure is over with the said insurance company, their policy lapses and is no longer valid. You need to specifically intimate your insurance company in writing that you wish to terminate your insurance with them as you are moving on to another insurance company.
Consider Insurance premiums when buying a new car: Most Americans don’t know this, but your auto insurance premium is calculated on various deciding factors. The car model you possess is one of these deciding factors, in fact its one of the most important! Auto insurance companies need to consider various factors when providing you a cover, many models of cars are far more popular among car thieves than others; for example a 1995 Honda Civic is notoriously infamous as one of a car thieves’ choice targets. Consult your Insurance provider on the premiums for all the cars your considering; remember the more expensive a car is, the higher its associated insurance premium will be.
Always update your insurer: If you have moved to a safer neighborhood, or installed certain safety features in your car, you should let your insurer know, this will definitely lead to a reduced premium. If you have a vehicle you don’t operate anymore, and don’t plan to for at least the next few years, drop it from your insurance plan. You’re still required in many states to get such a vehicle insured; although, what you can do is, register the vehicle as inoperable to avoid any penalties.