Money - Saving Tips

Shop Around

Auto insurance rates may dramatically for the same coverage. So shop around. Use comparative shopping sites that gives you several quotes by filling just out one easy form. Don't look for sites that give instant results. The selection of auto insurance companies on sites giving instant comparative quotes has many draw backs; result are limited to a few companies offering online real time quotes, usually with more higher rates. Results are questionable in accuracy and often changed by company during the underwriting process. Look for the site like www.QuotesAuction.com which provides quotes from a majority of the companies in your state and forces them to compete for your business. Remember - the service is free and you are under no obligation buy so be open to speak to a few agents, so that you can compare results.

Higher Deductibles

Deductibles is the amount you pay for loss or repair of your car before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%. Going to a $1,000 deductible can save you 40% or more.

Credit history

Good credit history coincides with fewer auto accidents compared to drivers with poor credit history. While the use of credit history in rating insurance is controversial, most companies are still using credit rating in calculating costs of your insurance. Keep a close look at your credit report. Use credit monitoring services that alerts you of new activities on your record. Identity theft is on the rise. Respond right away. Work with credit counseling and debt consolidation services to clear your history of delinquent unpaid debts and derogatory entries.

Good Driver Discount varies from state to state and company to company, ranging from 15% to 20%. Drivers with no more than two minor moving violation or one at fault accidents without bodily injury in three years may qualify in most states. If you have more than 2 tickets in the past 3 years, you may still qualify if taken traffic violation school or a defensive driving course.

Consider costs of insurance before buying a car

Your premium is based in part on the car's price, likelihood of theft, the cost to repair it, overall safety record, performance index and safety features. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include air bags, anti-lock brakes, daytime running lights and anti-theft devices. Some states require insurers to give discounts for cars equipped with air bags or anti-lock brakes. Cars that are favorite targets for thieves cost more to insure. Information that can help you decide what car to buy is available from the Insurance Institute for Highway Safety. Two doors, sport models, 4 weal drive vehicles are usually cost more to insure, especially if a young driver is listed on the policy.

Save your Policy Declaration pages for at least 5 years. Many companies give Persistency Discount for uninterrupted coverage. Declarations pages help to prove uninterrupted coverage. Do not allow break in liability coverage. If you are involved in an accident, while your liability insurance is not in force, your driver license can be suspended. This will cause you loss of Persistence Discount, substantial rates increase, and you will be required to file a proof of financial responsibility with DMV for three years in a row.