Car buyers will often stretch themselves financially to get
them into the car of their dreams. They place so much
emphasis on the car purchase finance they forget that also
insurance can also be a financially draining prospect.
Once you have purchased a car you may be surprised at just
how much the insurance will cost each year. As far as
possible, it is necessary to try to lower your premiums in
order to make your car ownership more enjoyable. Without
worrying about stretching yourself to make your auto
insurance payments. Below are some ideas to help you to
control the amount that you are paying for auto insurance.
The first rule is to always shop around for your car
insurance needs. A good option is to take out a six-month
auto insurance policy; this will give you the flexibility
to look for the best provider twice a year. Instead of
having to wait the full 12 months too possibly, lower your
also insurance premiums.
Checking out premiums online can be useful for giving you a
general idea of the rates, but these quotes should only be
used as a guide. The reason for this is that these quotes
depend on various factors and information, which you cannot
provide through the online form. Therefore, when it comes
to the final quote you will often find that the premium
will actually be considerably higher.
Shopping around is however a very helpful practice, as it
can save a substantial amount of money, perhaps as much as
$200 or $300 on a standard six-month premium. Higher
deductible payments can be another useful tool for lowering
your premiums. Many car owners shy away from this practice
because they feel that should they have a claim they may
have to pay out a significant amount from their own wallet.
While this is correct, it should also be weighed against
the potential savings that the higher deductible can offer.
Minor accidents are far more common than a real smash; as
such, your deductible may not help you to save money. As
the cost of repairs may well be below even the compulsory
deductible demanded by the insurance company You may find
it may be a better option to increase your deductible to
$500 or $750, that way considerably reducing the amount you
will pay per month. Without necessarily increasing the risk
of you having to ever have to pay out a large cash payment.
Many drivers opt for payment of their premiums through the
insurance company monthly installment plan. This can be a
good way to spread the payments across the entire year.
Unfortunately, this service does not come free, and the
insurers will charge an additional three for the service.
This fee will probably fall in the $5 to $8 per month
range, but keep in mind if you can possibly afford to pay
every 6 or 12 months in advance, that will represent a
saving of up to $100 per year.
So called 'multi-line insurance' can be another useful
option to reduce the total you pay for your auto insurance.
Multi-line insurance there is a fancy term that means that
you buy all of your insurance needs from one company.
If you were to take out your buildings insurance along with
your auto insurance at the same time, from the same
company, you should have no difficulty negotiating a 15%
reduction on both premiums. This can translate as a
considerable saving when you think how much your auto and
building insurance costs per year.
Many insurance coverers are looking for good quality
drivers that lower their risk of having to pay out for
needless accident claims. If you have a good driving
record, you may find that insurance companies may reward
you for being a safe driver by giving a substantial
discount on your premium.
So if you have managed to avoid accidents and motoring
convictions for a period of time your insurer may be more
welcoming, and eager to negotiate, than if you have
recently made an auto insurance claim.
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Gary Milton has been writing on auto insurance and other
related topics for many years. Read more of his work at the
http://www.ridoe.net for auto insurance and also
http://www.one38.org for auto loans.
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