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Saving money on auto insurance

Date: Mar 26 2010
Filed In: Auto Insurance101

Saving money on auto insurance

Here are six inside tips on how you can save money on your auto insurance.

1. The first tip is to raise your deductibles. These are the amount you will have to pay out of your pocket before the insurance company pay anything. For example, raising your deductible from $100-$500 may reduce your premium up to 20%. If you increase your deductible to $1000, you may be able to save 25% to 30%.

It may pay to pay for fender bender yourself.

2. The second tip is to drop collision and comprehensive coverage if you drive older car. If your car is not worth much, you probably will replace it if it is badly damage.

3. Third tip is to comparison shop, do not assume that all insurance companies charge the same rates. You can see from 30% to 50% just by comparing costs.

You can also get free quotes online from different insurance companies and independent auto insurance agents, which are people who represent several auto insurance companies.

4. Fourth tip is to drive safely. Accidents can greatly increase your auto insurance premium or your insurance company can cancel your policy when it is time for renewal.

Also, avoid traffic tickets since these can increase your premiums in up to three years.

5. Fifth tip is to have a good credit score to lower your auto insurance rate. The auto insurance company may use your credit score to judge your risk and adjusts your rate accordingly.

So, it pays to borrow wisely and consistently repay your debt on time.

6. Six tip is: why not shop for your auto insurance before buying a new or used car. Sports cars and more expensive cars typically cost more on insurance premium.

Cars that are expensive to repair, or cars that are favorite target for thieves have much higher auto insurance premium cost.

There are other discounts such as being at least 25 years old, taking a driver training course, carpooling, paying six month of premium instead of monthly, installing antitheft devices, low mileage, ensuring more than one car and insuring your home with the same company.

Make sure your insurance company is giving you these discounts. Shop around again in a couple of years because the rates are always changing.

I hope these tips will help you lower your auto insurance premium costs.

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