Due to the recession many people are cutting down on services like auto insurance to save money. Since vehicle insurance is important it is always advised to buy a policy that covers you adequately. There are many things you can do as a consumer to save money while buying insurance and this article will elaborate on five ways to lower your auto insurance premium.
Drive Less and Maintain a Low Mileage
Once of the factors that auto insurance companies consider before giving you a quote is the number of miles you drive each year. People who drive a lot are often offered high premiums since the chances of them getting into an accident are more. Also cars that are driven a lot are most likely to break down in the middle of the road. One of the other factors taken into consideration is the mileage you drive at. If you drive at a high speed then you are more likely to pay more as premium to insurance companies since driving fast can cause accidents. By keeping your mileage at or below 35 miles per hour for one year you will be eligible for a cheaper insurance along with low mileage discounts.
Drive an Affordable Car
Expensive cars like sports cars, luxury cars or two door cars usually cost car owners a lot more than the person bargained for since auto insurance companies charge high premiums for these cars. Insurance companies charge a high premium for these expensive cars since repairing them is costly and finding genuine spare parts is not easy. While buying a car you should look for a vehicle that is cheap to repair so that insurance companies offer you a low premium. You should also look for a car that is safe to drive and one that has basic security features. After getting your safe car you should consider getting a good theft alarm, automatic seatbelts and automatic air bags since insurance companies usually give better discounts to car owners whose insured vehicle has additional security features.
Remove High Risk Drivers from Your Policy
Auto insurance companies always advise policy holders to add family members to their policy but this is not a good idea especially if you are adding a high risk driver to your policy. Since a high risk driver is more likely to get into an accident or commit a major violation insurance companies charge these drivers a very high premium. If you have unknowingly added a high risk driver on to your policy then you should consider removing him from the list and getting him his own high risk insurance policy. If you have added your teenage child on to your policy then you should consider removing him from your policy and instead making him the primary driver of a cheaper car. This simple step can help you save up to 20% on vehicle insurance every year.
Opt for a Single Insurance Company
If other members in your house drive cars then you should consider opting for separate policies from the same insurance company. Most insurance companies offer discounts and group offers to people who insure all their family members with a single carrier. For additional discounts you should consider insuring your house from your car insurer provided he provides both services.