Car Insurance -- Things That Will Enable You Save Considerably

There are a lot of options open to anyone who wants to enjoy affordable insurance. However, a number of them might leave you slightly compromised. However, in this article, I'll take you through several proven steps for paying less while you have adequate coverage....

1. If you keep collision and/or comprehensive for an old car that isn't a classic, then you are paying much more than is necessary. This is because you are reimbursed based on what is called the Kelly Blue Book value of your vehicle at the time you file a claim. So even if you've paid your premiums faithfully for several years but the Kelly Blue Book value shows your vehicle has zero value, you'll get nothing from the insurer and they'll be completely on the good side of the law.

So, stop wasting your hard-earned cash. Once your car gets old, discontinue collision and comprehensive coverage on it. This simple step will save you much and not compromise you in any way.

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2. You are eligible for a sizeable discount if a child on your policy doesn't drive the car for a protracted period because he/she is away at school. Don't miss this if your kid is in college. While you should try, you must bear in mind that this is not one of several traditional discounts that all insurers offer.

3. Reviewing your auto insurance policy periodically is one sure way you can reducing your rates. Change is unavoidable and goes on without notice but then we mustn't still bear the cost for matters that such changes have relieved us of. How about dropping your just-wedded daughter from your policy?

Does it occur to you that you might now be eligible for some discounts due to a number of changes in your life? It might as well no longer be in your best interest to retain some coverage types.

It would, as a matter of fact, help you a lot if you revisit your policy up to twice yearly. Finding even one thing that you no longer need on your policy and removing it will result in some savings.

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4. An easy but effective way of bringing down your premium is by authorizing an EFT (Electronic Funds Transfer). By doing this you authorize an insurance provider to automatically withdraw your premiums from your account at specified intervals. This reduces administrative costs like those involved in sending payment notices. Your rate is therefore reduced to reflect the lower cost of providing insurance to you.

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.

Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones.

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.

Let ussay, for example, that you will get a 5 percent (or $125) discount after your third year with an insurance company where you present auto insurance rate is $2,500.

However, due to inflation, insurance companies may have to re-adjust their rates to reflect those changes. But if you do routine shopping for auto insurance you'll almost always get an insurer within those years of waiting who'll give you a similar coverage at a lower rate. In this regard, it is of no value to continue because you want to get a discount much later when you can enjoy lower rates at the moment.

You'll most likely pay less if you take the time to do extensive shopping since there are hundreds of auto insurance companies around. You can only know if this is true in your case if you get and compare quotes from a good number of auto insurance carriers to see where your interest is better served..

6. Add-ons like towing raise your premium without giving you as much value as using a towing service. Have you checked to see if your credit card doesn't already offer this as added value?

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

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7. Running a business through the internet is a lot cheaper than a brick and mortar approach. Expect to save up to 15% (when compared to what you'll pay if you went to a physical office) if you get your quotes and buy your policy online.

This makes it obvious that you'll save a lot more if you buy online.

But do ensure you do NOT present false information. Insurers are mandated by law to cancel any policy once they can prove that the policy holder gave false details.

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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