When you are shopping for car insurance, you are probably trying to find the best coverage possible at the lowest price. There are certain factors which are a crucial part of how an insurance company calculates your premium. These factors include gender, age, and prior claim record. While these factors are hard to change, there are some steps you can take to help lower your insurance premium. Try following these lower auto insurance rates tips.
- Get several quotes. Each insurance company is different and may use different factors to calculate your premium. Shop around, using the same criteria such as coverage, number of vehicles, etc., and get several quotes. If you would like to get quotes from the low-priced carriers, visit the National Association of Insurance Commissioners website and look at their list. There are also several independent websites which will help you get several quotes for auto insurance coverage.
- Get estimates beforehand. Before you buy your vehicle, get an idea of what insurance costs will be for this vehicle. take the year, make and model of the car you are considering and visit a few online sites for insurance quotes. Generally, the older and more modest cars will be less expensive than the newer, sporty models. However, you may still find big differences in rates between insurance companies, so it is a good idea to get quotes from several. If you are considering several different models, get quotes for each so you can do a good comparison before you buy.
- Raising your deductibles can also help lower your premiums. If you can handle a $1,000 deductible, yu can realize savings from between 25 and 40 percent on your premium. Just remember to set aside the funds you will need to pay this deductible should you have a claim.
- If you car is older, get rid of the comprehensive and collision insurance. If you are still paying for collision and comprehensive coverage on a car older than ten years, you may be overpaying. To help you decide, take the amount you are paying for both comprehensive and collision insurance and then multiply it by ten. If your car is worth less than the total, you can eliminate the coverage.
- Take care of your credit score because almost every insurance company uses a customer’s credit score in their calculations. The only states which do not allow this are Hawaii, California, and Massachusetts, so if you live anywhere else, chances are your credit score will play a role in calculating your premium.
- If you do not drive many miles annually, ask the insurance companies about a low-mileage discount. This may be a good way to get a lower premium.
- Ask about other discounts such as anti-theft devices, multiple car discounts, good student discounts and if there is a discount for bundling home and car insurance together.
- Try not to let your coverage lapse. It is almost always more expensive to start over than to transfer from one company to another.
Following these lower auto insurance rates tips can help you find the best insurance coverage for the best price. Just be sure to shop around so you have options.