10 Ways To Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typicalinsurance policy can cost a few hundred dollars to a fewthousand dollars a year. And the insurance rates you pay arehugely dependent on the insurance company or agent, your age,your car type, your driving record, and even the area you residein!You should never go without auto insurance though, despite thecosts. Almost all the states require you to protect yourselfwith a minimum amount of liability coverage. Naturally, the bareminimum is not adequate enough for the average car owner. And asyou add in additional coverage for your car, you realize thatyou will be paying a fairly large sum annually.So, understanding auto insurance can actually help you to decideon a suitable insurance policy that won't vacuum clean yourwallet! Here, we have gathered 10 of the best tips for loweringyour auto insurance, by as much as 40%!Always compare insurance policies. There are states whichregulate auto insurance rates, but the insurance premiums canvary by hundreds of dollars for the exact same coverage. It isdefinitely worthwhile to shop around. The first thing you can dois to check with your state insurance department. They oftenprovide information about the coverage you need, as well assample rates from the biggest companies. You can also ask yourfriends or look up the yellow pages. Checking consumer guidesand asking insurance agents can pay off as well. You can easilyfind out the price range for your insurance policy, as well asdiscover the lowest prices in town.However, you should not be shopping based on price along. Theinsurance company should provide good service at the best price.Excellent personal service is available as well, and theyprovide added conveniences, although they cost a fair bit more.Ask the company how you can lower your costs, and also checktheir financial ratings. The rule of thumb is always to getthree price quotes from three different companies, and pick theone with the best value.It can also be a good idea to increase your deductibles. Whenyou file a claim, the deductible is the amount you pay beforethe insurance company pays for the rest of the damage. A higherdeductible on collision and comprehensive coverage can lead to amuch lower premium. For example, increasing your deductible from$200 to $400 can reduce your premiums by up to 25%. However, youmust ensure that you have the financial resources to handle thelargest deductible when the time comes.Remove certain types of coverage from your policy. Almost allthe states require liability coverage for your car, but the restof the coverage is probably dispensable. However, you do notwant to be underinsured if you're in an accident, so it isn'tadvisable to remove all of your additional coverage. Optionalcoverage includes medical payments, uninsured motorist,collision, and comprehensive coverage.Drop collision and comprehensive coverage for older cars. If youdrive an older car that's worth less than $2,000, it's probablymore cost-effective to drop collision and comprehensive coveragesince you'll probably pay more for the coverage than you'llcollect for a claim. You can find out the worth of your car byasking auto dealers and banks.Make sure your credit report looks good. Car insurance companiesoften look at your credit history as there is a correlationbetween the risk to the company and your credit history. If youpay your bills on time and maintain a good credit history, youcan enjoy lower insurance rates.Drive less. Insurance companies often offer low-mileagediscounts to motorists who drive less than a predeterminednumber of miles each year. You can use public transportationmore often, car-pool with friends, and take the train or a planeinstead of driving to another state. And you'll save on morethan your coverage as you'll need to spend less on gasoline (ofwhich prices are incredibly high).Maintain a clean driving record. The company will give you aprice break and you can save on your insurance policy after aspecified period of a clean driving record. This means that youhave no accidents, no serious driving violations etc, duringthis period of time. The simplest and surefire way to qualifyfor this discount is to drive carefully and defensively all thetime.Choose a low-profile car. Insurance rates vary among differencemodels of vehicles. Generally, sports cars and high-performancecars tend to cost more to insure, mainly because they representmore risk of theft and the drivers are often the people whodrive more recklessly. Newer cars will cost more to repair orreplace than older ones, so naturally they can more to insure.Low-risk vehicles include station wagons and sedans.Ask about safety and security discounts. The insurance companiessometimes offer discounts on your insurance if your car isequipped with the following: anti-lock brakes, air bags,automatic seat belts, car alarms, tracking systems. These reducethe injury risk to you, as well as the chances of your car beingvandalized or stolen.Finally, ask about other discounts. You may receive a discountif you buy more than one type of insurance from the same companyor if you insure multiple cars under the same policy or company.You may also receive discounts for taking a defensive drivingcourse, staying with the same company for a few years, being adriver over 50, good-student discounts, and being an AAA member.If you already have adequate health insurance, you can alsoeliminate paying for duplicate medical coverage, thus loweringyour personal injury protection costs by a substantial amount.