Tips to Decrease Auto Insurance Premiums

by Joey Hudson

In many states, automobile insurance is not just an option; but, a requirement. Even if mandated by law, automobile insurance is a good idea. To get the best coverage for your money, provider comparison is key to finding the appropriate policy for the least amount. Comparing as many quotes as possible will provide the best coverage for your money.

Annual costs will depend on driving record, the records of additional drivers, frequency of use and mileage incurred annually. The cost will also be determined by the make and model of the vehicle being insured. There are several methods for finding the best value on your automobile coverage.

Choose a vehicle that is not likely to be the target of car thieves -Some cars are a target for theft. You can cut down on your automobile insurance if you choose a car that is not one that is an obvious target. If you do have a car that is a target for theft, installing an anti-theft system can cut down on your automobile insurance premium costs considerably.

Increase the deductible – The deductible is the amount paid out of pocket in following an accident or theft. The higher the deductible, the lower the insurance premium. Insurance companies tend to quote lower deductibles while banking on the auto being involved in an accident. As a driver you know your liability. Increasing the deductible will lower monthly premium costs.

Pay yearly – If you pay for your insurance on a yearly basis, instead of monthly or quarterly, you can usually get a discount. There is usually a fee associated with paying for the automobile insurance on a monthly basis. Paying yearly can save you about $100 a year.

Good grades – If you have teenagers or college students driving your car, your rates can be lowered if they have good grades. Most companies will offer a lower premium rate for students who earn a “B” average or better. This is yet another incentive for your kids to get good grades in school as it can save you hundreds of dollars a year.

Avail of safe driver discounts – Avoid moving violations for a year and this may qualify you for a safe driver discount in some states. In other states, two years without violations is required to qualify for the Safe Driver discounts. Maintaining a clean driving record can save hundreds of dollars in premiums on an annual auto insurance coverage.

Eliminate unnecessary collision coverage – If your car is only worth a few thousand dollars, consider eliminating collision coverage. When a car is stolen or is involved in an accident, the cost of replacement of the car will not be covered. This can be well worth it if the car is of low value. Know your liability and safety record when choosing to add collision coverage to the policy.

About the Author: