Auto insurance is a must for all motorists who wish to drive around legally in the US. Driving without valid insurance can get you into serious trouble, where your license may be suspended. So, it is important to obtain auto insurance if you wish to have a clean driving record.
However, there are a few important things that you need to know when you purchase auto insurance. Auto insurance is something that you should purchase, but not use. The whole aim is to ensure that you keep your claims history as clean as possible in order to keep the rates low. You should ideally file a claim only in case of a major accident where the losses are so huge that you can’t handle it.
Many people assume that purchasing an auto insurance policy is an expensive affair, but that is not true. If you follow a few simple tips you can save a huge sum of money on auto insurance.
- First of all keep your driving record squeaky clean. You must ensure that there are no speeding tickets, traffic violations, accidents etc.
- In case you have an insurance claim that is just a couple of hundred dollars over and above the deductible then don’t file a claim. Ideally, you should consider paying up the entire amount out of your pocket. Insurers have different rate hikes for at-fault accidents, and you could easily end up with an increase of 40% or even more.
- Even if you have towing coverage through your insurance provider, it will be considered as a claim in case you use it. So, you should purchase roadside assistance from somewhere else.
- Ensure that you never allow the auto insurance policy to lapse, as you will be looked at as higher risk.
- If you wish to keep the auto insurance low, you must also drive a model that is the cheapest to insure. For instance, you may choose a Honda Odyssey, Toyota Sienna, or a Chrysler Town & Country LX as these are the models that are the cheapest to insure.
- Shop around for auto insurance and obtain at least five to six quotes from various insurance providers. even if you don’t want to change your insurance provider, you may at least end up saving some money, when you shop around.
- If you have any chance where the driving habits in your family can get you discounts, and then do try to make use of that. In case you have a teenager who would be joining college, then you could get a lower rate as they will not be driving while they are away.
- In case you have switched jobs recently, then you have probably lowered your annual mileage as well. this might help in bringing the rate down.
- Living in a high-risk zone can increase the auto insurance rates significantly. However, that is something that you may or may not be able to change. The ZIP code you live in will make a lot of difference to your auto insurance rates as well.
