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Maximize your auto insurance savings

A GUIDE TO FINDING THE CHEAPEST RATES

In these more difficult economic times, everyone wants to keep their auto insurance premium low. The process begins with understanding how insurers set the rates. They look at who you are. Everything is relevant. Your age will say something about how much foresight you have and how responsible you are. In this, the statistics confirm women make better drivers than men because they are law-abiding and follow safety rules. If you are a student, a good GPA says something about your willingness to learn how to drive well. Where you live and work says something about how many miles a day you will drive. In a way, these factors are not completely under your control. Those who are inexperienced and live in the wrong ZIP code neighborhood, will always pay more. The moral in the story so far is to compensate by working hard on your own track record.

The auto insurance industry puts you in a group based on how they expect you to drive. If you want to prove the insurers wrong, all you have to do is avoid picking up tickets and drive so safely you never make a claim. In this simple and direct way, you earn the lowest premium rates. Now add further savings through the discounts and decisions on the deductible. If you have more than one vehicle, there are discounts for placing them all with the same insurer. A further saving is available if you also insure your home. Most companies award discounts for fitting anti-theft devices and going through an approved defensive driving course. Contact the auto insurance companies to find out what discounts are on offer and whether you are eligible. As to the deductible, the higher the amount to agree to self-insure, the larger the discount. However, before you go down this route, do the math. Suppose lightning strick in the same place and you had two or more claims in the same year, could you find the cash to pay the deductibles?

The final question comes down to a simple choice. Some auto insurance companies offer a loyalty discount. The longer you stay, the more you save. Against this, balance the welcome bonus many companies offer if you transfer your policy to them. Always shop around, getting as many auto insurance quotes as possible. That way, you can find where you can make the most savings.

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