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How to save money on car insurance

Date: Nov 28 2010
Filed In: Home Insurance

Auto insurance premium is up 10% from last year (2009) and one way to save on auto insurance premium is to shop around for auto insurance.

According to Consumer Reports Magazine, found that only 14% of the people surveyed shop around and found cheaper auto insurance.

One reason for that is, if you have been with the same insurance company for a long time. You may be given discounts for what they call long jeopardy. However it is still worth shopping around. There are many other methods to get cheap auto insurance policy.

The first thing people should do is to do annual check on your insurance. When you get your auto insurance bills, usually a few weeks before you have to pay them. Take that time to look around to see if you can get a better deal. There are a number of ways to do; one is to look at your state department website. In most states they have a list of the insurance companies that do business in your state and often they have comparison rates as well as premium information. This could give you an idea of which insurance provider is cheaper than the other.

You can also call the independent insurance agent who represents more than one company so they can help you shop around. There are many websites you can go to compare auto insurance quotes from different companies. So is pretty easy and fast to shop around, however you will not always save but it is something you should do.

Top rated auto insurance company

Pick the top rated auto insurance that offer reasonable price and will take care of your claim if you ever got into accident. You want to make sure that if you ever get any problem the auto insurance will be there for you and settle everything quickly.

Factors auto insurance companies will consider when someone is applying

Auto insurance providers will look at just about anything, they will look at your family, if you are single or married, do you have kids, do you have teenage kids. They may also look at what you do for a living and they may look at your credit score in most cases.

Auto insurance providers have formula that they do to see how risky you are. They may decide that you’re a bigger risk and charge you more for it at, sometime they may not insure you at all because you’re too risky.

How can your driving record affect your score

This is one that auto insurance provider can refuse to insure you if your driving score is bad enough. Most state assigned points to traffic violations of various kinds. Anything from parking tickets to serious things like drinking and driving. Car insurance companies will look at your driving points and driving record and they will feed that into their own formula to see how risky you are.

Not all car insurance companies will rate your premium based on that, many will and against some may decide that you’re not a risk they want to deal at all.

How your credit score affect your auto insurance premium

Some people may say this is entirely unfair just because someone had a financial problem, it doesn’t mean you’re a bad driver. You may be a great driver but got into some kind of financial difficulty.

However, the auto insurance company may argue that is one more thing that gives them a better picture of who you are and how responsible you are.

If you are a good driver with a good clean driving record but has a bad credit. One of thing you should keep doing is keep being a good driver and there are ways to increase your credit score.

Get your free credit report each year at www.annualreport.com, look at those and see if there are any errors on them. If there are any errors make sure you correct it. Also check your credit balances, one thing that made your credit looks good if you have a good available credit but you’re not using it all. So make sure you don’t max out your credit and have plenty of available credit left. That makes you look like a more responsible person.

In general do whatever you can to raise that credit score and eventually that will affect your auto insurance rates.

Setting your deductible

Deductible is the part of insurance that you pay out of your pocket before the insurance kick in. For example, if you’re in a car accident and it would cost you $2000 to get it fixed and you have a $200 deductible. You have to pay the $200 first and then the insurance pick up the rest.

If you can raise that deductible from $200-$400 or even to $1000, you can paid much less for your insurance premium and you could save up to 30% to 40% in some cases on your premium.

So make sure you don’t raise the deductible to an unreasonable price because if you get into an accident you will have to pay that out of your pocket first before your insurance cover the rest.

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