Auto Insurance Saving Tips
Responsible drivers everywhere want to save money on quality auto insurance. With insurance being a legal requirement for every vehicle owner in most parts of the United States, the amount you will be paying to cover your vehicle can vary. When an insurance company issues a rate, a multitude of factors are computed to determine the chance you are likely to make a claim. Driver, car and geography are ingredients in computing your payment amount. Though minimizing your insurance premiums with a low-cost policy could be an option, less expensive insurance agreements are often less and may not sufficiently cover your damages or losses.
Wanting to pay the least for a policy while maintaining quality coverage, the following are examples how you can reduce the total amount of your auto insurance premium:
The products and rates between insurance companies can differ. It is best to gather quotes from several providers to compare the coverage being offered prior to selecting your auto insurance company. Besides comparing rates, take note of the protection being provided by each entity. You should also take note of possible discounts. Bundling insurance products under a single company is one typical discount. If possible, you can combine home insurance or the coverage of a second vehicle with your policy for a lower overall rate than insuring items separately.
Maintain a Clean Driving Record
Common sense advice for gaining a low, affordable rate on auto insurance is to keep your driving record clean. Sometimes it is a matter of bad driving luck that you are disqualified from a better insurance rate but careful, law-biding behavior behind the wheel will often net the best premium amount.
As an extra measure to obtain a lower insurance rate, consider taking a defensive driving course. Several insurance companies offer discounts to drivers young and old who have completed a qualified defensive driving program. Defensive driving courses can vary in composition consisting of a multi-day classroom/in-vehicle sessions or courses that can be completed online. The amount of money that can be saved also differs depending on the insurance carrier and state.
Maintain a Higher Deductible
A deductible is the out-of-pocket expense an auto insurance policyholder is willing to spend in case of an accident. When considering an insurance policy, attempt to acquire the highest deductible amount you can afford. An added burden to the vehicle owner, agreeing to a higher deductible reduces the financial risk for the insurance company. A higher deductible will also reduce the chance of you making a claim for lower cost vehicle-related damage.
Consider Vehicle Crash and Theft Ratings
Insurance companies have been collecting data for years on the likelihood of your vehicle being lost or stolen. Under the NHTSA (National Highway Traffic Safety Administration) as well as the IIHS (Insurance Institute for Highway Safety), every popular modern vehicle sold in the United States is crash-tested for risk of occupant injury. Since some vehicles prove more desirable to thieves or more likely to be involved in an accident, rates are adjusted accordingly.
The type of vehicle as well as safety equipment found on a model is widely explored in calculating a rate. It is commonly assumed color of a vehicle is a determining factor for insurance premiums. In fact, color of a vehicle has no direct bearing on your quoted insurance rate.
Usage-Based Auto Insurance
A relatively new lower auto insurance rate tool is designed to charge a vehicle for real-world driving habits. Usage-based auto insurance relies on data such as speed, distance travelled and/or the time of day the driving is done to adjust premium payments. Most of the time, information is sent by a device provided by the insurance company the user connects to cars on-board diagnostic computer. For newer cars equipped with OnStar, several insurance companies offer discount based on your vehicles odometer information. The OnStar option does not require the addition of a transmitting device or an active subscription. It is possible for some drivers to save money if they drive shorter distances on a regular basis. Often companies offer a base discount for agreeing to the use of tracking technology on your vehicle.
Tracking driving habits, usage-based auto insurance can prove unsettling for some individuals concerned about personal privacy. Providing comfort to some motorists opting into the service, insurance companies have created various safeguards to prevent the misuse of collected information.