Once you have identified two or three cars that you think you can afford and will fulfill your needs, call your current insurance (or a new insurance company) to compare premiums for the cars. Car insurance costs vary because of the safety record, repair costs and likelihood of theft as well as the price of the car.
Request higher deductibles. The deductible is the amount of money you have to fork over before your insurance policy comes to the rescue. By bumping your deductible up from $200 to $500, you could lower the cost of your collision and comprehensive coverage by 15 percent to 30 percent. By increasing it to $1,000, you could decrease that cost by at least 40 percent.
Factors That Impact Your Rates
In addition to the specific coverage options that you select, other factors that affect your auto insurance rates include the following:
- Deductible: This is the amount of money that you pay out of your own pocket if you get in an accident. The higher your deductible, the lower your insurance bill. In general, a deductible of at least $500 is worth considering, as damage to your vehicle that comes in at less than $500 can often be paid without filing an insurance claim.
- Demographics: People living in high-crime areas pay more than those living in low-crime areas.
- Claims: Accident-prone drivers pay more. If you want to keep your rates low, keep the number of claims that you file to a minimum.
- Moving Violations: Speeding and other moving violations all have a negative impact on your insurance bill. Obey the law to help keep your rates from rising.
- Vehicle Choice: Sports cars cost more to insure than sedans, and expensive cars cost more to insure than cheap ones do. Looking into the cost of insurance before you purchase that new car could help you save a bundle on your car insurance.
- Driving Habits: The number of miles that you drive, whether or not you use your car for work, and the distance between your home and work all play a role in determining your rates.
- Age: Younger, less experienced drivers have higher insurance rates.
- Gender: Men have higher rates than women.
- Theft Deterrent Systems: If you have an alarm on your car, you'll pay less to insure your vehicle.
- Safety Devices: Air bags and anti-lock brakes both work in your favor by keeping you safer and lowering your insurance bill.
- Accident Prevention Training: Some companies offer discounts if you take a driver's education training course.
- Multiple Policies: If you have more than one car and/or also have homeowner or renter's insurance, keep in mind that many insurance companies offer discounts based on the number of policies that you have with them.
- Payment Plan: Some insurance companies offer discounts based on your payment plan. Paying your entire yearly bill at one time, instead of in installments, may lead to a discount.
Make your car more secure.Motorists who make it tricky for thieves to steal their vehicle often pay less for
their car insurance. So fit your car with an approved alarm and immobilizer. If you have a more expensive car, the insurer might insist that you install a sophisticated tracking device.
Some insurance companies will charge you extra if your contract is paid monthly or quarterly. Look into a yearly term as one way to save some money on your premiums. The best cheap insurance may offer some significant discounts this way.
Most companies now use aspects of your credit to determine your rate. It is illegal for them to do this mid-term as long as your policy is continuous without any lapses, they can't use external info to change your rate. They can only use claim and ticket info. However, all newly added vehicles can be affected by credit. If you have good credit, this may be to your advantage. You are allowed to request that they re-check your score once per year. However, whatever the score is, you're stuck with it. If it comes back bad and it raises your rate: too bad. But, if you have a policy that was written when your credit wasn't so great, request that they check it again after things look better.
Conclusion
Shopping wisely can help you protect your health, your assets and your wallet, so put forth the effort to determine the type and amount of coverage that you need. Also make sure that you review and understand your policy before you sign on the dotted line. If you plan well, you'll be pleased with the results, should you ever find the need to put your policy to the test by making a claim.
Mohammad abubakar behlim a blog author http://besttipsandtricx.blogspot.com/
http://allabout4fun.blogspot.com/