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How to Save Money On Car Insurance
Are You Still Paying Too Much for Car Insurance?Everyone who owns a car needs auto insurance. This article willgive you some tips on lowering your auto insurance costs. Youwill find a checklist of items to ask your insurance agent thatmay qualify for discounts. Keep in mind that not all discountscan be applied with all insurance companies in all states.1. Shop Around Go to your favorite search engine and type in free carinsurance quotes online. You'll see a long list of insurancecompanies that you may even be familiar with. Visit at leastfive car insurance websites and look for a link to free quotes.You will then be asked basic information about yourself, yourdriving history, and your car's make, model, and year. It justtakes a couple of minutes, and shortly thereafter, they willemail you a no obligation quote. Write down their websiteaddress, their toll free number, and customer service emailaddress.Each insurance company will ask you generally the samequestions, and will give you options about how much coverage youwill want. Find your current policy, if you have one, and takenote of the coverage you currently have. Always provide the sameinformation and ask for the same coverage at each company so youwill be comparing apples to apples. Read the fine print and makesure nothing is excluded from the quote like Rental carcoverage, towing, medical, etc...For the purposes of the quote, the insurance company will notask you your social security number, but keep in mind youractual cost maybe higher or lower depending on your credithistory. If you're not sure about some of the terminology orcoverage, take notes so that you can ask the insurance companyabout them directly.Once you have at least five quotes emailed to you, take thelowest two or three quotes and see if they are less than whatyou are paying now. Most likely at least one of them is muchlower. At this point you will want to call them directly to getthe most accurate quote by providing additional personalinformation. For additional discounts, here is a checklist ofthings you should ask about.[ ] $500 deductible[ ] $1,000 deductible [ ] Paying monthly, semi-annually, or annually[ ] More than 1 car [ ] No Accidents in 3 Years [ ] No Moving Violations in 3 Years [ ] Driver Training Courses [ ] Defensive Driving Courses[ ] Anti-Theft Devices [ ] Low Annual Mileage [ ] Air Bags [ ] Anti-Lock Brakes [ ] Daytime Running Lights[ ] Student Drivers with Good Grades [ ] Auto and Homeowners Coverage with the Same Company [ ] College Students away from Home[ ] Long-Time Customer[ ] Other Discounts 2. Saving Insurance Premium on cars you own outright.If you own a clear title to your car, meaning there is no bankloan on it, then you may want to consider dropping thecollision/comprehensive coverage. As a rule of thumb, if thecars value is less than $3000, it may not make sense for you topay for this additional coverage. Over time, the cost of theadditional insurance premium will exceed the value of the car.It's pretty simple math.Check the fair market value of your car either throughEdmunds.com or even your local newspaper. See what other peopleare trying to get for the same car. Keep in mind your carsmileage, condition, and age. Has it been in an accident before?Does it have unusually high mileage in excess of 15,000 milesper year? Does it need new tires? You get the idea. Berealistic, because in the event that this car is in an accidentand is damaged beyond repair, it is unlikely you will get thefull value of the car.3. Ask About Insurance Rates in Different AreasRates can vary widely even in the same state. Different localshave different accident rates, population, and crime. These allfactor in to the final cost. If you are moving to a differentarea, ask about what the rates are for that town. 4. Ask About Getting Other Insurance Policies Together With YourAuto InsuranceCombining insurance policies with the same company can oftengive you additional discounts. If you own a home, ask aboutcombining your homeowners insurance with your auto insurance.Also ask about other polices, such as life, health, and businessinsurance. Most insurance companies cover a wide range ofpolicies and will give substantial discounts when you dobusiness exclusively with them.5. A Clean Credit History Can Reduce Car Premiums: Having good credit can also lower your insurance costs. Manyinsurance companies will use credit information to price autoinsurance policies. Drivers with good credit and a clean drivingrecord may qualify as a "preferred" customer with lower risk andwill be rewarded with lower premiums.6. Low Mileage DiscountsSome companies offer discounts to drivers who drive a lower thanaverage number of miles per year. If you car pool, take publictransportation like the subway, or work from home, you will mostlikely drive few miles per year than the average driver.7. Group InsuranceSome insurers offer discounts to drivers who work for certaincompanies or belong to professional associations, and alumnigroups. Ask your employer, group or clubs that you belong to ifthey have any special arrangements with different insurancecompanies. Using all of these tips can save you hundreds of dollars peryear, especially when you have multiple cars and multipledrivers in the same household.
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