Insurance experts say that the current economic environment warrants looking for less expensive auto insurance. Even with the average yearly insurance at its lowest level in more than a year, financial analysts point out that tougher economic times are ahead and more Americans are expected to lose their jobs in the coming months. As a result, a growing number of people are scaling back their expenses, auto insurance included.
Because car insurance is practically required by law in almost all states, with Wisconsin and New Hampshire the last ones, experts say that not having the proper insurance coverage can spell disaster for any car owner. If caught without insurance, motorists can end up paying hefty penalties, fines, or even risk going to jail. The stigma of driving uninsured can also get worse especially if it is recorded in the policyholder’s driving record. This can mean years of relatively expensive insurance.
Fortunately, there are ways for any motorists to slash insurance premiums. Most insurers provide substantial discounts for a variety of reasons. For instance, some motorists can get discounts simply for being a member of a particular organization or group. Federal government employees can get special discounts. Members of the armed forces can also ask for lower premiums. While affiliate discounts may not be that much, five percent at the most, they can help bring down the cost of insurance.
Having a relatively clean driving record can also help convince providers that a policyholder is less of a risk to himself or other drivers on the road. A spotless driving history can mean that a motorist is particularly cautious behind the wheel. It can also indicate that a car owner is responsible when it comes to driving.
A good credit history can also help slash rates, depending on the state a car owner resides in. Some states allow insurers to assess premiums based on the motorists’ credit ratings. Credit scores give providers a chance to assess how trustworthy their customers are when it comes to paying for insurance.
Motorists can also opt for defensive driving courses to get better rates. Most providers endorse certified driving programs for policyholders to enroll in. Because these classes help improve the driving skills of car owners, providers often give out special discounts.
Lastly, car owners can consider raising their deductibles to get lower rates. Increasing the deductible amounts to $1,000 can lower premiums by as much as 40 percent, experts say.