Insuring your vehicle will protect the automobile, the passengers, driver and others on the road.
Car insurance premiums are dependent on several factors, some of which a motorist can change and others he or she cannot alter.
Things that can not be changed include the age of the driver, whether they're male or female, where the car is driven and the motor vehicle records that have already occurred.
There are several items that are controllable, however.
Here are some ways to save on your premiums: - Deductibles: The amount of a car insurance policy's deductible will have a large impact on the price of the policy.
A deductible is the amount that must be paid by the auto owner should a claim be filed.
For example, if a person's deductible was $500 and a collision occurred, they would be responsible for paying $500 of the total repair bill.
This is similar to a co-payment in health insurance.
If a person's current deductibles were $250 and they were willing to raise them to $500 or even $1,000, it would make a substantial reduction in their annual premium.
- Multiple vehicle discount: If your family has more than one vehicle to cover, using the same company for all autos will make each one eligible for the multiple car discount.
Ditto for other types of policies.
Using the same agent or firm for all of your insurance needs, including property, rental or fire coverage, will most likely result in some rate discounts.
- Comparison shop: There is a wide range of rates charged by various companies.
Make sure to shop around and get several estimates before making a decision.
There are brokers who will do the shopping around for you, for a fee.
If you don't have time to do some thorough research yourself, it may be worth it in the long run to pay a fee for a broker's help.
- Take a safety course: Many companies will offer a lower rate to their customers who are willing to take a drivers' safety course.
Many classes can be taken online over the internet.
Ask your agent to see if this is true for your situation.
- Good grades: If you or your kids are students, keeping a higher GPA (grade point average) will demonstrate responsibility, good character and habits.
High GPA's result in lower cost.
- Credit score: Believe it or not, a person's credit score will affect the cost of their premiums.
This is similar to the rationale used regarding good grades.
A lofty credit score demonstrates good habits, sound judgment and responsibility.
- Pay annually rather than monthly: Paying a lump sum once a year will result in lower prices.
Monthly payments may be easier but there will be a service charge attached for the convenience.
- Drive less expensive cars: That red sports car may be cool, but the premiums to insure it will be higher than coverage for an older sedan.
Car insurance can cost drivers less money if they follow these simple tips.