Though you cannot always save on car insurance like some companies promise, still it is usually possible to reduce the amount you are paying if you just look around a bit.
Get price quotes from more than one company. That’s because each insurance company not only has different rates, but also has different ways of calculating your premium. So you need to make sure, when you shop, that you are comparing similar coverage.
The following four areas are things to consider if you want to save money on your auto insurance:
1. Combine Policies – Often you can get the best deal from the same company that insures you in other areas. Check with your homeowner insurer, for example, or your life insurer (assuming they also offer car insurance). They may have preferred rates for current customers. They may also give you a lower rate because you are a long term customer.
2. Associations – Some organizations and groups offer opportunities for special auto insurance rates. For example, the Automobile Association of America is an association that saves its members millions every year on auto insurance. You might also check other associations that you belong to including professional organizations, alumni groups, companies and clubs. Often these organizations offer special discounts with certain insurance companies, obtained through group rates.
3. Behavioral Discounts – Many insurance companies offer special rates for “good behavior.” This might include factors such as a good driving records, and/or low accident rates. Further afield it might also include students with good grades and people that have taken drivers training courses. Every insurance company has a different idea of what constitutes “good behavior” and how that might affect their insurance rates. Be sure to ask what good behavior discounts your company offers.
4. Small Insurance Companies – sometimes small insurance companies offer lower rates to certain groups of people or to people living in a certain areas. This is because they may be trying to grow their customer base in a certain area or in a certain class of drivers. Be sure to include one or two smaller companies in your price comparison project.
Comparing your current insurance rates with what other companies have to offer often pays big dividends. It may even be a good idea to do a price comparison every year or two since companies, markets, and economic conditions change rapidly from year to year.
Because the insurance industry is so competitive, it is usually not too hard to find a company that’s willing to give you a better deal than the one you have.
If you liked this piece by Bill Brankar then you’ll enjoy his site on general-auto-insurance where he talks more about how to get cheap-van-insurance among other things.
categories: auto insurance,car insurance,insurance,automotive,cars,personal finance,budgets,Family,Finance
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