Tips to Decrease Auto Insurance Premiums

by Joey Hudson

In many states, automobile insurance is not just an option but also, a requirement. Even if mandated by law and no longer a personal option, insurance is a good idea, but the expense can be overwhelming. Compare rates and plans available before picking the policy. Provider comparison is key to finding the appropriate policy for the least amount. Comparing as many quotes as possible will provide the best and most adequate coverage to meet your needs and driving style.

Your costs will depend on your driving record, the record of anyone else driving the car and how often you drive your car. The cost of your insurance will also be determined by the type of car that you drive. There are several methods on getting value on your automobile insurance costs.

Choose a car that is less likely to be a theft target - Cut down insurance costs by choosing a car that is less likely to be a target of car thieves. Newer models have anti-theft devices and safety features already installed. For older models, you may have to install an anti-theft system but doing so can cut down on your automobile insurance premium costs considerably.

Raise the deductible - The deductible is the amount that you have to pay out of pocket in case of an accident or theft. The higher the deductible, the lower the insurance premium. Most insurance companies will quote a low deductible as if they are betting on you getting into an accident. Bet on not getting into an accident, raise the deductible and lower your 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 academic grades - Teenagers or college students covered under your policy can help lower premiums by maintaining good academic standing. Most companies offer a lower premium for students who earn a "B" average, or better, and provide added incentive for kids to succeed academically. This could decrease the premium by hundreds of dollars annually.

Safe driver discounts - Avoiding moving violations for a year may qualify for a safe driver discount in some states. Other states may require two years without violations to qualify for the Safe Driver discounts. Keeping 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.

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