How To Save On Auto Insurance

How To Save On Auto Insurance - Saving money on auto insurance seemingly has become the concern of most auto insurance buyers. It has become a clear fact that buying auto insurance in this bad economic can be really costly. You might not only need to pay high insurance rate but also have to pay expensive administration fees. As a matter of fact, people must try to save money on all products they buy or on all services they hire because saving money helps reducing living expenses. You surely have known that if you could reduce your living expenses, you would be able to live more conveniently and comfortably.

To save money on Erie insurance, the first thing to do is to find insurance coverage that best suits your needs. As you know, different insurance coverage has different benefits and is priced differently. If you are able to find the most suitable insurance coverage, you will certainly feel that your money is spent on a worthy thing. For this purpose, you have to compare several different types of insurance coverage side by side. Then, the second thing to do to save money on auto insurance is to find the Cheapest auto insurance.

In this case, you are expected to shop around because different insurance possibly rates a car differently. When you are shopping around, you have to obtain insurance quotes from multiple insurance companies. If you have got at least three quotes, you must compare the quotes to find a quote with the lowest deal. In order to narrow your search, you can focus on Cheap insurance quotes.

Further, the third thing to do is to have a good driving record. If you have good driving record, insurance companies usually will offer interesting rate. This opportunity is absolutely tempting because you have chances to save money only by having a good driving record.

The first thing you can do to save money on auto insurance is to self-insure as much as you can afford. Do this in the following ways:
  • High deductibles. Everyone preaches this, yes, but it’s usually the easiest way to cut costs. Usually. (If your car is over ten years old, the savings may be minimal.)
  • Remove towing. Good maintenance and planning can save you money. Don’t run out of gas. Don’t lock your keys in your car. Make sure you have a spare and know how to change it. Sometimes your car will break down, but if your car is well-maintained, it won’t happen often. You pay $10 – $30 a year over the life of your policy and one tow costs $100. Note that in the event of an accident, towing is almost always covered under collision.
Remove car rental. Small economy cars cost about $20 – $25 per day to rent. Car rental is $20 – $40 per year. Play the odds. If you rent a car on vacation, your insurance will cover you while driving that car. Don’t pay for the extra coverage. The only things it offers are:
  • Zero deductibles. You go all year long with your deductibles, why change now? Also, if you pay for the car with a credit card, they may pay for any out of pocket in the even of an accident.
  • Downtime coverage. Downtime means that while the rental car you wrecked is in the shop being repaired, it can’t be rented out to other customers and they can ding you for the daily fee. This may be an issue if they can show that all other cars were rented out and they lost cash money because of you — Hawaii is notorious for charging this. But, again, it’s a risk you might decide to self insure rather than pay $21 a day for the insurance.
Tips for How To Save On Auto Insurance
  • Review your policy at each renewal. Make sure that all your discounts still apply, and check to see if you may be eligible for additional discounts. Sometimes discounts need to be certified each year(“good student"? discounts, for example), and sometimes a computer glitch will accidentally drop a discount from your policy.
  • Keep your insurance policy up-to-date. A lot of variables affect your insurance rates, so if your situation changes you’ll want to make sure your policy reflects that. If you get married, if you’ve moved, if your commute to work has changed, or if you’ve installed a car alarm, for example, your rates may be reduced. Keep in mind, however, that if your commute is longer, or if you’ve moved to a neighborhood with higher loss rates, your price could go up.
  • In the long run, it often doesn’t pay to switch insurance companies, especially if you do it a lot. Insurance rates may go up and down—usually up—each year, and if you switch companies for a lower rate you may find that your rates increase even higher at the next policy renewal. In addition, if you stick with a company for several years, you may become eligible for a “long-term"? discount. Additionally, you may earn “accident forgiveness"? as a long-term customer, so that if you get into an accident, your premiums won’t rise.
  • Find out if you qualify for any group plans. For example, if you are an alumnus of a college or university, or a member of a professional organization, you may qualify for an affinity discount or a special group plan with one or more insurance companies.
  • Don’t be afraid to get a second opinion. Not sure if you need the coverage your agent advises you to have? Check with another agent or your attorney for advice.
  • Make your child earn driving privileges by getting good grades. If you do allow your son or daughter to get a drivers license, insist he or she get good grades in school. The “good student"? discount can save you up to 20% or more off the rate you pay for a child. A “B"? average (3.0 GPA) is usually required to qualify.