Cheers To Your Low Auto Insurance Rates


Majority of the American people, who need to work hard to earn a living, would be happy to hear about the things they can do to lower down their auto insurance rates.

The deregulation of the petroleum industry has not made any significant changes as to the lives of the average person but unexpectedly made few significant changes in auto insurance industry by having the insurance provider compete with each other to gain more customers.

As you may have noticed, many insurance companies send out brochures and info materials to their potential customers and at the same time offering their so-called cheapest insurance rates in town. While these rates may work for the selected few, this does not mean it will work for you too. Your coverage requirements may differ from that of your friends or neighbors, even if you own the same car model. Therefore, when purchasing for your auto insurance, the need to do some serious thinking should be exercised.

Things that affect the cost of your insurance policy.

The Value of your car. Because of the economic downturn, many people are forced to save their vehicles with duct tapes or bailing wires and continue to use them forever. If this car has been insured in the same company for 10 years now, you will definitely need to do “insurance checkup” to determine if you are not paying more than the car’s worth.  You can safely remove the collision and comprehensive insurance coverage (if you still have it) for practical purposes or if the value of your car is 10 times less than the annual cost of your policy.

Raising your deductible. Deductible is the money you pay before any claim is to be made. Raising your deductible will have a significant effect on your monthly or yearly insurance premiums. A $1,000 deductible is a good choice for law-abiding and safe drivers.

Auto Insurance Shopping. If you love shopping, then there is no reason you will not like auto insurance shopping as well. Thanks to the insurance deregulation and the internet, you can now get multiple insurance quotes from different companies, free of charge, in less than an hour.

Keep that driving record squeaky clean. There is no need to explain this part but by having a clean driving record will not only benefit yourself but also to the other drivers in your household. For instance, we already know that teenage drivers are considered as a high-risk driver and the common notion is to separate them and have their own policy. But some companies may actually reduce their rates if you piggyback your teen drivers to your own policy.  This is because of the fact that many insurance companies are interested to have a lifetime relationship with you and to the new driver.

Discounts for Low Mileage. Right now, only one insurer is testing the “per-mile” coverage insurance. This means that the driver under this coverage will only have to pay for the time he/she spent behind the wheel. However, this type of policy did not receive a wider appreciation, and if you are looking for ways to save money on low-mileage, you can opt to use the public transportation, bicycling or perhaps teleworking.

Planning to buy another vehicle. If you want to save on your insurance rates, stay away from expensive vehicles such as a sports car or SUV’s.