Auto Insurance Help For Me

Believe it or not, the television commercials are right; you probably can get cheaper auto insurance.  Going about it their way (trading your company for theirs), may not be the best way to go about it.  Here’s the bottom line.  These companies are in business to make money.  True, they do that by offering a valuable and needed service.  Still, the bottom line is still the bottom line.

A more independent approach is probably best.  Here is what to do.

1. Do Some Shopping Around
All insurance companies are not created equal.  Different companies have different offers and provide a variety of discounts.  It all depends on which company fits you and your circumstances best.

Now this may seem like a hassle.  But just think, if you spend a couple of hours comparing companies and getting rate quotes and you ended up saving $600, that’s like making $300 an hour.  I’d sure take that money.

2. Be a Bargain Hunter
It is all about discounts offered.  Discounts may be offered for all sorts of reasons.  Be sure to look for and ask about for which you may be eligible.  Discounts are offered for things like:
• being a member of a professional organization (like AAA)
• multiple cars under the same policy
• combining coverage (if you have your homeowners and car insurance with the same company)
• policy renewal, (have you been with the same company for several years and not had a claim?  They like you – think about it.)
• safe driving training (some companies even offer their own safe driver training courses)
• good grades (if you have a driving student at home)

3. Keep a good driving record
In the long run, one of the best ways to save money is to be the kind of driver that insurance companies like – a safe, law-abiding driver.  Consider your own driving habits.  Nothing motivates quite like money, and good driving habits could end up saving you hundreds, if not thousands, of dollars. The bottom line is that you have control over one of the biggest factors involved in lowering your car insurance rates.

4. Choose your car wisely
The cost of insurance isn’t one of the primary things we think about when we are shopping for a new (or new to us) vehicle.  But, it should come into our thinking at some point, because it will end up being a part of the financial equation.

Certain safety features (like anti lock brakes, airbags, and automatic seat belts) can qualify for lower insurance rates.  Some states even require it for certain features.  Also, if your car ranks high on the most stolen vehicle chart, the more it will cost to insure.

Just a couple of things to consider that do affect your financial bottom line with a vehicle.

5. Take on more risk
First of all, be careful here.  But this is one of the most dramatic ways to reduce costs.  There are two ways to accomplish this.  One, if you’re driving an older car, you could end up spending more to insure the car than it is actually worth.  If so, it’s likely time to drop the collision insurance.

And two, you may wish to raise your deductible.  A $500 deductible is pretty standard (that means you would pay the first $500 of any covered repair before your insurance begins to pay).  Raising the deductible to $1,000 could reduce the monthly premium by as much as 30%.