By: Rosemary Carlson
All automobile owners would like to find a way to slash car insurance rates and get low rate car insurance. Auto insurance costs take a big chunk of our monthly paychecks. In some areas, costs are greater than in other areas, but all across the board, insurance premiums are high. Here are 10 tips to follow to try to slash even a few dollars per month off your auto insurance cost:
- Insure your car and house with the same company. Most insurance companies will give you a discount up to 10% if your cars and your home are all insured through them.
- Raise your deductible. Raising your deductible on your auto insurance policy is one of the best ways to substantially cut your insurance costs. Since collision insurance is such a large part of the cost, consider raising your collision deductible.
- Buy a car that insurance companies like. If you buy a Chevrolet Corvette or a Porsche, for example, you may not even be able to obtain car insurance, as they are considered racing and high-risk cars. Most of the popular sport utility vehicles, except for one of the smaller ones, are insured as trucks. As a result, insurance on these vehicles is considerably higher than on cars.
- Drive defensively. Your car insurance rates will often go up even if you are involved in an accident that isn't your fault. Companies usually offer discounts of about 5% if you have a clean driving record for three years and increase the discount to 10% if you have no accidents or violations during a five-year period.
- If you commute, join a car pool. If you are a member of a car pool and your insurance company knows you don't drive your own car to work every day, you may be eligible for a 15-20% discount.
- Handle teenage drivers responsibly.If you have a driver under age 25 in your household, do not list that driver as the principal driver for any car that you have insured. Young drivers, particularly men under 25, are subject to very high insurance rates especially if they are the principal driver. Good student and driver's education discounts can range from as low as 5% to as high as 25%.
- Have appropriate safety equipment in your car. Be sure and buy a car with the latest safety features. Many states offer discounts if your car has automatic seat belts, airbags or anti-lock brakes.
- Be sure your car is safe from theft. If you have a garage, tell your insurance company. Cars that are parked in a garage have a considerably lower rate of theft and your company may offer you a discount for this protection. Also inform you insurance company if you have an alarm system installed in your car.
- Inform your insurance company of your demographic group. If you are over 55, a single female in a one-driver household, an early retiree or even a non-smoker, tell your insurance company and your premium may drop.
- Shop around. Car insurance rates vary widely, sometimes even within the same geographic area. Get quotes from several companies before making a decision. Be sure and tell the companies if you think you qualify for any discounts.
Obtaining auto insurance is a big financial commitment. Follow these 10 tips and try to get the best deal possible. But, even though you want to lower your costs, go with a company that gives you adequate coverage and has a good record of paying claims.
