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BillSavings.com Blog6 Proven Ways to Lower the Cost of Your Car InsuranceSave on Car Insurance with Proven TechniquesPosted By Mindy
BillSavings.com Brief:
Lowering your car insurance isn’t hard to do when you follow these six proven techniques.
Now that the economy is slowly healing, we’re all emerging a little older and wiser about the way we spend our money. More people are opening savings accounts or investing in retirement. New accounts are opened at personal budgeting sites like Mint.com everyday. And consumers are much more wary about settling for the prices they’re given when shopping for things like auto insurance. We’ll focus on that topic today as we explore six proven ways to lower the cost of your car insurance. #1: Shop and compare prices There aren’t any hard and fast rules about car insurance prices, so most companies will charge as much as they can get their customers to pay. This means prices can vary quite a bit between companies, so the number one most important rule when you need new car insurance is to shop around. To shop and compare price quotes, you can either look up quotes from a company website or call them directly. You may even be able to get price comparisons by calling your state’s insurance department. Many times they’ll have price ranges charged by the major insurers in your area. It’s also a good idea to shop and compare offers from different types of insurance companies. Look at businesses that sell auto insurance exclusively and compare them to companies with every kind of policy under the sun. You should also consider companies that sell through their own agents versus agents who sell policies from several different companies. For the most part, it’s good to look into at least three price quotes. Go for more if you have the time. And while you’re at it, ask for referrals from friends and family members. If someone you know has had a great experience with a particular company, chances are you will too. #2: Ask for a higher deductible on your policy A tried and true way to lower the cost of your auto insurance is to raise your deductible. True, this means you’d have to pay more if you ever did go through any kind of accident, but the upside is that the chances of that happening are very slim. In contrast, you’re guaranteed to have to pay a monthly premium for your auto insurance, so if you work out a high deductible deal that lowers the cost of your policy, you’ll save quite a bit over time. #3: Combine insurance policies Many insurance companies offer discounts if you have multiple policies. You can ask about these discounts when you’re calling around to shop prices, but it’s also a good idea to contact your existing insurers. Take a look at every company that holds existing policies for you. From life insurance to homeowner’s insurance to liability insurance, any one of the companies that offer those policies may cut you a deal on auto insurance. Even better, if you sign on with them for an auto insurance policy they might lower the cost of your existing insurance policies. #4: Dig for discounts Plenty of auto insurance companies offer other types of discounts, though in most cases they don’t advertise them. This could include a senior discount, a low mileage discount, or a discount for membership to various associations. Often times you can’t find out about these discounts by visiting the website of an insurer, so call directly and ask about any discounts they offer. #5: Keep your credit record spotless More and more, insurance companies are digging into credit information before they price policies for new customers. This means it’s more important than ever to maintain a good credit record. This also means doing the things you should be doing anyway when it comes to personal finance: pay your bills on time. Don’t take out more credit than you need. Keep your balances low. Pay off debt. And finally, check your credit record on a regular basis to make sure there aren’t any errors driving your numbers down. #6: Compare costs before shopping for a new car Auto insurance costs vary quite a bit depending on the type of car you drive. That said, it’s a good idea to figure out what your car insurance premiums will be before you shell out the money for a new vehicle. Premiums are based on factors like the sticker price of a car, the safety record, the chances it’ll get stolen, and the overall cost of repairing damages. For a little insight on which cars have advantages when it comes to insurance, check out the Insurance Institute for Highway Safety site at www.iihs.org. Put in the time When it comes down to it, lowering the cost of your car insurance is all about putting in a little extra time to make sure you get the best deal. Remember, a good deal on car insurance will pay off over the course of years to come – so it’s worth the investment of time you make upfront. Category: Insurance 1/20/2010
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