How You Can Save Money on Your Auto Insurance

Car buying along with getting car insurance varies through different people. These involve earning capacity, age and status. For people who earns a lot, their option might be different for those whose working with a low paying job. Same as for a teenager buying a car, his/her standards might be different from those different from their age. But one thing’s for sure though, everybody wants tips on how to slack off some digits off the price value. So what are the tips in buying cars? The tips include buying for new cars and how to save money on auto insurances.

Save Money on Auto Insurance:

  1. Do some shopping around. The rates of different companies vary in all states; therefore it’s better to keep your options open. Some companies may have better rates for different types of vehicles or different zip codes.
  2. Stay Insured. Never let lapses on your insurance policy. If your policy expires, it’s hard to obtain insurance and chances are that your insurance might be more expensive than it was before. Companies often charge extra for those customers who had their insurance expired.
  3. Increase your deductibles. The higher the deductible is, the lower the price for that coverage, so have your agent quote you higher deductibles for you to see how much you can save.
  4. Buy only the coverage that you need. At least once a year, have your agent review your coverage. Have it a point that you make sure you fully understand the implications of dropping or reducing coverage because in many cases, the extra risk you take on by doing so exceeds the money you save.
  5. If you have vehicles you don’t drive, don’t insure them. If you have your car idle on your backyard for about a year now, make sure it’s not on your insurance policy anymore. Only drop a vehicle from your policy if you’re sure you won’t be driving it for a long time.
  6. Buy a longer policy. Remember that the longer the term of your policy, the cheaper the rates will be and there might be a price penalty attached to three or six month policies.
  7. Undergo driver training course. Whatever your age may be, a training course can help you become a better driver, which will lower your insurance premiums in the long run.
  8. You should drive safely. Accidents that you are at fault may cause you to increase your insurance premium for about three to five years. If you’re a responsible driver and haven’t been involved in any accident for quite some time now, then ask your agent if you qualify for an accident-free discount.
  9. Avoid being ticketed. If you intend to push your rates up substantially, then have yourself be ticketed for speeding and other moving violations; these usually affect your insurance about three to five years, just like accidents. So if you don’t want that, avoid tickets. It’s not worth it.
  10. Build good credit. Many insurance companies charge more for bad credit and give discounts for good credit in most states.
  11. Make the children wait until they have their license. Young adults are prone to getting accidents and insurance companies price for them accordingly. If your child gets his or her drivers license, you must pay the extra premium, and the increase of price will definitely shock you. It is best for you to make your child wait to drive, because if insurance bills are already sucking your bank account dry, then that’s probably the best option. Rates usually go down when the drives turns 18 and price plummets later around age 21 or 25 years old.
  12. Drive less. You want to have a discount? Then cut your driving. Some insurance companies offer up to 5% if you drive less than 7,500 miles per year and they offer discounts of up to 10% if your annual mileage is less than 5000.
  13. Install anti-theft devices. Some insurance companies provide discounts of up to 36%, this depends on the category of the anti-theft device.