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7 Ways to Lower Your Auto Insurance Premium

Owning a vehicle is an expensive proposition when you consider just the sale price of an average new car. When you factor in the additional costs of fuel, oil changes, tire replacements, and general maintenance, auto ownership can begin to cut into a personal budget significantly. It is no wonder then that people are constantly looking for ways to save money on their auto insurance, which adds another significant cost element to the ownership of a vehicle. Fortunately, there are steps you can take to access auto insurance at the lowest possible rates from the best auto insurance companies.

1. Obtain a Quote for a New Policy

The greatest and the best way to save money on your automotive insurance is by getting a new quote often. When you have being with one insurance company for many months, they can keep charging you the same amount or higher amount at every 6-month mark. In actual facts, your insurance should be going down month after month especially for not having any accident. But auto insurance companies don’t really care, if you don’t care. It is always a good idea to contrast and compare your policy with something new. With new quote comparisons, you may find a lower rate, and you may even find opportunities to obtain low cost improvements to your existing policy. Why not get auto insurance quotes every months or every three months. It is free and you can do it online.

You can do this below. Enter your zip code to see how much you can save.

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2. You May Already Be Covered

Many states require that a general auto insurance policy provides Personal Injury Protection (PIP) coverage, while some states allow you to opt out of this coverage. If you are required to maintain the coverage, you are often presented with the option of increasing the limits for this coverage above the mandatory requirements. If your limits are higher than the PIP minimum, you may be paying more for insurance than you need to.

If you have a good health insurance policy, that policy will pay for medical expenses also. In most cases, when you are injured in an auto accident and you make a claim under PIP, your medical costs are paid by your auto insurer on a primary basis, and your health insurance will pay for the remaining costs once PIP limits are exhausted.

3. Seek Out Special Discounts

Discounts for auto insurance companies have gotten very competitive and insurers have found creative ways to offer many different types of premium reductions. Even companies with high auto insurance company ratings are offering a multitude of discounts.

One of the most commonly used discount relates to bundling. If you obtain your auto and homeowners insurance through the same company, they will usually offer a bundling discount. IFA auto insurance offers a lower rate if you opt to pay your full premium up front. Paying monthly or quarterly for your auto insurance will typically cost more with an auto insurance company.

Many clubs and organizations have worked out deals with auto insurance companies. If you are an active member of a club, find out if there are any discounts given to members of your organization. If not, find out what insurance company does offer such a discount.

If have gone accident free for a significant period, you may qualify for a good driver discount. Be sure to ask about this while shopping for your auto insurance policy.

4. Military Auto Insurance

If you are a member of the active military, or a veteran, be sure to notify your auto insurance agent. You may be able to take advantage of military auto insurance discounts. There are also discounts for emergency military deployments.

5. Drive the Right Car

Some cars cost more to insure than others will. Sports cars are viewed as higher risk vehicles due to their high speed and repair costs.

If you own a car that is known of high performance driving, or is considered a sports car, rates to insure that vehicle will be higher. This would encompass many two-door vehicles, as well as those cars that have large engines and sport suspension packages.

Vehicles that are more expensive will also cost more to insure. Foreign luxury cars in particular will have high insurance costs due to the higher cost of parts associated with their repair.

The least expensive cars to insure will include four-door sedans, mini-vans and certain SUVs.

6. Maintain Good Credit

Insurance companies recognize that people who have bad credit scores are likely to be bad drivers, and that they tend to cause more accidents caused by careless driving. Accordingly, many of these insurance companies have opted to use a credit score in their rating scheme in order to charge more to people who may be more likely to cause an accident based on their credit score. If you wish to get the lowest possible rates, make sure your credit history is in good shape.

7. Lower the Deductible

The deductible on your policy refers to an amount that you must pay toward the repair of your car before the insurance company will pay. The amount of the deductible can be set by you when you purchase the policy, and you can set it as high as you like. If you are looking to save money on your auto insurance, consider the highest deductible that you can reasonably afford. For many this may be as high as $500 or $1000. This can be a significant hit in the event of a claim, but you should try to maintain an emergency fund to pay this deductible in the event an accident so that you can keep your premiums low.

Filed in: Auto Insurance

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