Auto Insurance Rates -- To Save Considerably, Try These

Do you want a more affordable rate for sufficient coverage? You'll see several useful tips in this write-up...

1. There are cars that cost a lot more to give adequate auto insurance coverage. So as you look out for the exceptional specs of the car you intend to buy, don't forget to ask if it costs too much to insure. Avoid any car that has a high theft rate and/or a poor crash rating.

Furthermore, it will also take much more to insure a car that costs a lot to repair or maintain. I don't know about you; but it does make sense to choose a comparable vehicle that is more insurance-friendly.

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2. A car with a higher safety rating will attract better rates than another with a poorer rating all other things being the same. Safety features should be given more consideration when buying a new vehicle. You will qualify for a Safe Vehicle discount if your vehicle has such mechanisms. To get more details on this and how much savings you'll realize by having them, talk with your insurance agent.

3. Under-25 drivers get higher rates than any other age group. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.

So you'll do well to NOT place your teenage driver on your policy. You'll be made to pay very high rates if you do otherwise. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.

If a teen is keen on driving then then should be made responsible for at least the cost of their auto insurance. An addition argument in favor of this is that your teen will be more willing to take measures to reduce what he or she pays. The full implication of this is that your teen will be a lot safer as they'd do their best to avoid inflating their rates.

Affordable Auto Insurance

4. You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Depending on the insurer, you'll be eligible for a discount of 5% once you've stayed with them for between three and five years.

Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones.

However, what you may save by switching to another insurer might far outweigh all the incentives you'll get depending on what your rates are and how much another insurer is ready to offer.

If your auto insurance premium is $2,500 and you get a five percent discount when you maintain a policy with them for about five years you'll pay $2,500 - (5% of $2,500 or $125) = $2,375.

However, due to inflation, insurers may have to re-adjust their rates to show such changes. But while you're at it, an insurer somewhere might be ready to offer a rate of $2,000 or less at the moment. In this regard, it will be pointless to continue because you want to get a loyalty discount down the line when you can enjoy lower rates at the moment.

You'll most likely pay less if you take the time to do extensive shopping because there are hundreds of insurers out there. To be sure you're not loosing better offers, obtain and compare auto insurance quotes not less than five insurance quotes sites..

5. Participate in a defensive driving course. In addition to improving your driving, they will make you eligible for a discount with your insurance provider provided such a program is one they approve.

6. Before you get carried away with the few hundreds you will save on a house, check if it will not cost you much more in auto insurance. Do you know also know that homes within the same neighbor might actually fall into different risk zones according to the insurance industry's mapping?

So check with your agent before you commit to a new home. This doesn't come readily to mind when you're shopping for a new home. Does it?

Remember, you might live in this home for up to 20 years or more. If its location makes you pay up to $200 more in premium, that will add up to $4,000 within that time frame.

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7. Using your parents' auto insurance policy is a good alternative for you an under 25. The fact that you're of driving age means that your parents are of a better risk age group.

You must remember that the car must be registered in their name and you must be living with them if you want to use this option. If you want to be the owner of your car, then be the big boy or girl and also own the higher premiums. Sorry, you can't have both with this option. However, you can still make huge savings by following the link at the end of this piece.

8. You will save much money in auto insurance if you get and compare auto insurance quotes from quotes sites. You will realize savings if you visit only one of such sites. However, you will get more by using at least five.

The plain logic in this is that you will get a greater number of auto insurance quotes from many more insurance companies. This increases your chances of receiving better offers.

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