Automobile Insurance -- Things That Will Help You Save Much

A cheap rate can be achieved in a lot of ways. However, some of them could leave you slightly compromised. I don't usually support such options because they rubbish the main purpose of insurance in the first place. Therefore, I'll only show you tips that will also leave you adequately covered in spite of saving you much...

1. You are certainly paying too much if you've got collision and comprehensive coverage types for an old car that's not a classic. A car's Kelly Blue Book value at point of making claims (and not the price of the car when you bought it) is what affects what you'll get paid by your insurer. This shows that without respect to the amount you've spen on premiums and for how long you did, you will get absolutely nothing if the book says the car is worth nothing by the time you make a claim.

Therefore, stop wasting your money. If your car gets old, cut out collision and comprehensive coverage on it. You will be saving much that way.

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2. You can get a considerable discount if a child on your policy does not use the vehicle for a considerable length of time because he/she is is in college. If your kid is in college then you should discuss with your auto insurance agent about the possibility of getting this discount. I must point out, however, that a number of insurance companies don't offer this discount.

3. You might be able to reduce your rate if you re-evaluate your policy periodically. It is sad to note that a lot of people still pay for coverage points that made sense yesterday but no longer make sense today. How many policyholders, for example, remember to drop their daughters from their car insurance policies immediately they get married?

Does it occur to you that you might now be entitled to some discounts because of a number of changes in your personal details? It might also no longer be good advice to maintain some coverage types.

Therefore, do NOT fail to go through your auto insurance policy periodically. You might discover a few things that are no longer necessary and make savings when you drop them.

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4. A straightforward but effective way of reducing your premium is by authorizing an EFT (Electronic Funds Transfer). This process authorizes your bank to credit your insurer with your premium payments without any intervention from you until you stipulate to the contrary. This eliminates administrative costs like those incurred when sending payment notices. This is why this results in lower rates.

5. The longer you stick with the same insurer the more you stand to gain for two reasons: The long term discount and accident forgiveness. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.

Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. These are all incentives for you to stay with them for as long as possible.

Just bear in mind that some people will be better off if they switched to another insurer notwithstanding the many discounts given to long term policy holders.

Assuming your auto insurance premium is $2,500 and you are given a 5% discount when you stay for up to five years you'll pay $2,500 - (5% of $2,500 or $125) = $2,375.

However, bear in mind that your rates may be raised to reflect the effect of inflation. Within the course of these 3 years you would most likely get an insurance provider who'll give you a comparable auto insurance coverage or better for less than $2,000. Then it would be anything but wisdom to stay put because you want to qualify for a discount down the road knowing that the expected discount is less than savings you'll get immediately if you switch.

you will most likely pay less if you make out time to do extensive shopping since there are hundreds of insurers out there. Since the process of obtaining and comparing auto insurance quotes requires just minutes, I'll wonder why you will not do that now and get more affordable auto insurance rates right away.

6. There are useful extras and there are those that do nothing but just inflate your rate. A good example of the later is adding a towing service to your policy. Do you know that your credit card company might have already given you towing as an extra benefit?

Overall, you're better off using a third party towing service than placing it on your auto insurance policy.

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7. The internet makes the cost of doing business low. By extension, insurance providers spend less online and therefore give a massive discount of about 15% for those who buy their policy online.

Therefore, as much as you can, buy your auto insurance policy online.

Do your utmost to present your details truthfully. If you try to cheat you'll lose big time on the long run (Your insurer will be covered by the law if they cancel your policy on the grounds that you misrepresented facts).

If you choose to buy online, don't forget to do due diligence: Check with your state's department of insurance to ensure the company you're buying from is licensed to sell auto insurance in your state. Don't also fail to check their rating.
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