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Lower Your Car Insurance Premiums
by: Samuel Beatson
Some Tips To Lower Your Auto Insurance Costs:
1. Get Multiple Quotes:
Find out what your State's requirements with respect to car insurance are.
Go to the National Association of Insurance Commissioners web site. Then choose
your state's website and click on it. You will the find complete information
about the coverage you need.
Now visit different car insurance websites. Click on the get a quote links.
Just key in your information and get quotes from at least 5 companies. Auto insurance
premiums vary greatly from one insurance company to another.
If you fail to understand some part of the policy then get the insurance agent
to explain it to you. Always read the fine print to understand what cover is
entitled to you and most important what cover you are EXCLUDED from.
2. Save Insurance Premium Money On Older Cars:
If you own car that's not worth much say less than two thousand dollars then
drop the collision/comprehensive coverage clauses on your car insurance cover.
If you car suffers extensive damage or is totaled then you will probably never
recover much in damages and it is most likely that you will pay more in car insurance
premiums for the extra cover.
Get you car valued for its fair market price either through a dealer or using
the Kelley Blue Book. Then decide if you need the collision or comprehensive
coverage for your older car.
Start putting away that extra premium amount you would have paid for the collision/comprehensive
cover for the older car in a savings account. You will probably get a head start
for that new car you are dreaming about!
3. Drop Duplicate Medical Coverage:
If you are already covered under other policies for medical insurance in case
of accident and are already paying a hefty premium on that then you eliminate
the duplicate medical coverage under your car insurance. But always ensure that
you are medical insurance covers you adequately for any car accident related
injuries. Only then ask for the dropping of this provision in your auto insurance
policy.
4. Buy A Car With A Low Profile:
Safe, low profile cars qualify for lower premiums. A high profile car means
more premiums. If auto insurance costs are high on your mind than choose a safe,
reliable car.
5.Low Mileage Qualifies For A Discount:
The lesser you drive the car the lesser your auto insurance costs. So consider
car pooling, using public transportation for long commutes to reduce your auto
insurance premiums.
6. Safety Features Qualify For Discount
Do you know the more number of safety features in your car qualify for more
discounts on your car insurance policy. Specifically, ask for these discounts
if not mentioned in your quote.
Also, many companies offer discounts if you install safety features in your
car like an active or passive auto anti-theft device in your car or if you etch
the vehicle identification number in the corners of your windows. Park your car
in a protected area. Always lock your car. Never leave packages or belongings
in sight in your car. Avoid known high-risk parking areas.
7. Ask About The Other Discounts:
Always ask about the other discounts that you might be entitled to. For example
having a 20 year accident free safety record could qualify you for a discount
on your auto insurance policy so always ask.
8. Ask About Area Based Car Insurance:
If you are considering a move from a highly congested area to a rural area
then your car insurance premiums may be considerably reduced based on the profile
of the area you moving into.
9.Ask For Higher Deductibles:
Deductibles are the amount you pay before you make your claim. Higher deductibles
on collision and comprehensive (fire and theft) coverage will substantially reduce
your costs.
10. A Clean Credit History Can Reduce Car Premiums:
Most of the insurance companies will check your credit history before granting
your application. A clean credit history and a reasonably clean driving record
represent a smaller risk for the insurance company and you may well qualify for
a preferred policy with lower premiums.
On the other hand those with bad credit histories may have problems in keeping
up car insurance payments and keep policies in force, also they have higher claims
to loss ratio so insurers will usually put them in higher premium bracket.
This article was posted on February 09, 2006
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