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Insurance Overview: Ways To Save On Auto Insurance
By Molly's Brother | August 20, 2006
This is the fifth post in my “Insurance Overview” series.
In addition to knowing exactly what to look for when buying auto insurance, you should also know that there are ways to save money and reduce your premium. Below are some things you might think about when purchasing auto insurance:
When Buying a Car When shopping for a car, keep in mind that some cars are going to be more expensive to insure than others. If auto insurance premiums are a going to be a factor in your annual budget, then buy a lower profile car.
Comparison Shop When buying auto insurance, remember that the cost of similar policies can differ greatly from company to company. Research the policy you want and then compare specific quotes from at least three different insurance companies.
Keep A Good Credit Rating Your credit rating is one of the primary factors insurers use to set your premium. Be sure to keep your credit in check.
Low Mileage Discounts My commute drastically changed a year ago, but it didn’t dawn on me to call my insurance company for some time. The result was a sizeable decrease in my premium.
Pay Annually If you have the cash to pay your auto insurance annually, do it. For those of you who pay your premiums on a monthly basis, you’re being charged a transaction fee that, in the long run, adds nearly $100 to your insurance costs every year.
Use the Same Company You’ll receive a discount if your the same insurance company covers your home and your car.
Ask Your Agent Talk to your agent about other possible discounts that you may not know about. In addition to what I’ve already covered, here’s a checklist of other areas that might end up saving you money:
- air bags in your car
- anti-lock brakes
- good driver discount (meaning you haven’t been in an accident in 3+ years)
- completion of driver training/defensive driving courses
- good student discount
- anti-theft devices
- multiple car/multiple driver discounts
- discounts for drivers over 50
- …and there may be others your company offers: ask!
If you are interested in finding some more practical information about saving money on your car insurance, I suggest you read this great article at Bankrate.com.
Topics: Insurance, Personal Finance |