How to avail cheap auto insurance without compromising on the coverage?

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Are you looking for ways to reduce the premiums on auto insurance? The following factors influence premium rates.

Drive safe and give up speeding: If you have been spending a lot of time with the traffic police, discussing speeding tickets and paying fines, be prepared to pay a lot more premium for your auto insurance too! The logic of the insurance companies is that you pay more for the risks you take! So if you like to take a lot of risks on the road and are slapped with a speeding ticket for jeopardizing the life of other auto insurance holders, then you might as well pay more! Some insurance companies also track down a policy holder’s speeding violations for up to three years. Hence your speeding records will earn you, higher insurance rates. It is also difficult to shake off the tag of erratic driving amongst insurance companies. Car insurance companies hike up insurance rates when a policy holder claims for accidents. The individual is thereby categorized as one who is also likely to have more accidents in the future, which is obviously not in the best interest of insurance company. So drive in your lane and watch your speed. If you still manage to get a speeding ticket, opt for a combination of deferral or driving course to scrape clean your record and to save money while renewing or purchasing a new policy!

Routine or exotic car model: Insurance rates vary according to the car model and making. Car models with less safety features have higher insurance rates as these are more difficult for the company to replace. On the other hand, a model with many safety features will charge a lower premium. Install car alarm, antilock brakes to get a lower premium. Choose a car (if you still have the option) that is a routine economy vehicle and ignore expensive models to get a cheaper auto insurance.

Location matters: If you reside in an area that has low crime rate, your insurance premium will be lower than a neighborhood having a high crime rate. The higher risk of car theft or damage in a neighborhood of high crime rate also pushes up the insurance premiums. So, plan before you relocate to another neighborhood.

Do not duplicate insurance- if you already have a medical insurance you can reduce the cover for personal injury. In the event of an accident your medical insurance cover should take care of you.