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Top 5 Ways To Save On Your Car Insurance

Posted February 21, 2013 by Sean to Insurance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

Everyone wishes that they could lower their monthly costs of auto insurance but not everyone knows the secrets of the industry that can result in lower premiums.  The good news is that the average annual cost of car insurance has actually fell in the past ten years, but the overall costs still remain too high for many people to stomach.  There are five easy ways that you can save on your car insurance if you are able to do a little bit of homework.

Look For A Better Buy

In the same way that you would go to different appliance stores if you wanted to get a plasma screen television, you should shop around for auto insurance from as many different sources as you are able to.  Getting different quotes allows you to not only determine what factors are driving up the cost of your auto insurance, but also give you leverage to demand the lowest price tag.  There is no minimum or maximum number of quotes you should try to get, but a good starting point is to compare five different companies and their rates.  The difference between insurance coverage rates can be as much as one thousand dollars per year.

Check For Every Discount

Insurance companies need to create different competitive advantages for themselves in order to win over customers.  Since there are so many different options, these companies provide a number of discounts that make it more likely that certain customers will gravitate towards their policy.  These discounts can be any number of different factors.  A retirement discount, for instance, is available for senior citizens who are at a lower risk of accidents since they drive less frequently.  A good student discount, by comparison, is available for teenagers in high school who demonstrate their responsibility and maturity by earning better grades.  These discounts may only be a few dollars per month, but several in conjunction will add up to hundreds each year.  When you get a quote from an insurance agent, ask about every discount that they offer.

Boost The Deductible

If you happen to get in an accident or have to repair a car part, you will end up paying part of the amount out of pocket while the insurance provider pays for the rest.  This amount, the deductible, is directly linked to the cost of your premiums.  The rising cost of a deductible tells the insurance company that you are willing to put your money where your mouth is.  Since this deductible is meant for the bigger bills (like a complete wreck rather than a broken windshield), raising it will only affect the premiums for good drivers.

Eliminate The Coverage You Do Not Need

If you drive a car that is over a decade old and would not fetch more than a few thousand dollars in a sale, why would you want to spend more than its value in insurance?  Dropping some of the coverage will save a lot on insurance in the long run.  An older car, for instance, may not need collision coverage, since you would rather replace it than repair it.  This can potentially halve your premiums.

Work On Credit

Like many other parts of life, your credit score determines how much you pay.  A good credit score tells an insurance company that you are responsible enough to be trusted with lower premiums, while a poor score indicates that the company needs to leverage more money from you each month in order to generate a profit.  A poor credit score can leave you paying thirty or forty percent more each month than you would with quality credit.

I hope that by reading this you have been able to find a few ways to reduce the amount you are spending on your car insurance.

About Sean: Sean Dominey is a member of the team at Creditplus experts in finding and arranging finance for your next car, if you have any questions about car loans have a look at www.creditplus.co.uk/car-loans/

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