If you own a vehicle or if your household possesses a few vehicles, the car insurance could be a substantial burden on your monthly income. Since a car had become a must in the modern fast living, saving on car insurance would mean a lot to the monthly budget. With job cuts looming all around and wage freezes becoming the norm, saving as much as possible on car insurance is imperative. It is not too difficult to achieve substantial savings on car insurance if you understand and follow a few simple tips on this subject.
Clustering Your Insurances
Every person would necessarily have a life insurance, a home insurance, and car insurance. Further, majority of people also have health insurance in Hawaii. When these insurances are purchased from one insurance company by clustering them together, the insurance company would offer much better insurance rates and the premium on car insurance would be much lower. Further, insurance companies in Hawaii know very well that a healthy person would be a lower risk in an auto accident than a sick person. Submitting your health report along with your health insurance or life insurance would help you in saving money on your car insurance.
The average deductible for standard auto insurance is $500. You would be required to pay this amount when you make a claim after an auto accident. If you offer a higher deductible to the insurance company, the gesture would be appreciated and your car insurance rate would be proportionately reduced by the insurance company.
Auto insurance companies do take into account your credit rating and your debt to income ratio. If you improve your credit score and reduce your debt to income ratio, you would be in a far better position of negotiating a lower car insurance rate with the insurance company. This is not a one-day process. Even if these factors are against you at present and you are forced to accept a higher car insurance rate, you could work on these factors during the tenancy of the car insurance policy to improve on them. When your car insurance comes up for renewal, you would be able to persuade your insurance company that you had behaved responsibly and you deserve better car insurance rates.
Insurance companies consider fancy sports SUV vehicles and other such costly cars as high risk. The repair and replacement costs for such vehicles would naturally be quite high. Hence, the insurance companies would hike up the car insurance rates. Besides, when gas prices had been shooting up, what is the point in possessing these gas guzzlers? Purchase cars that give you good mileage and are not too costly. Insurance companies would understand that you are a responsible person and offer highly competitive rates.
Shop around with at least a dozen car insurance companies before you decide. You would understand the difference between their quotes and the reasons behind them, if you apply your mind. Then you would be well equipped to select the most appropriate one and prepare for a hard bargain with that insurance company for best car insurance rates.
