Paying your premium yearly will get you lower rates than choosing monthly payments. Even though this option is always more convenient, it is more expensive for some reasons..
Every check that is processed attracts a fee. .While a yearly payment attracts a single check and therefore a transaction for a year, monthly payments attrract twelve. You'll then have to pay the total of twelve transaction fees..
There are also administrative costs to your insurer that are due to monthly payments. A good example of such is the expense associated with mailing payment notices..
These costs plus a profit margin for this feature is added to your premium making it more than a similar profile that pays yearly every year.
Cheap auto car insurance
The longer you stick with the same insurer the more you stand to gain for two reasons: The long term discount and accident forgiveness. Some insurers will give you up to 5% in discounts once you've been with them for up to three years while others will give you such a discount only when you've stayed for up to five.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. These are all incentives for you to stay with them for as long as possible.
But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.
"Pimping your ride" does NOT help if you want lower rates. If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
It's a known fact that young drivers attract high rates. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. It will drive it up by a huge margin. You can discuss with your agent about signing an exclusion form so that your teen driver can have his/her own auto policy.
Let your teen bear the responsibility of paying for their auto insurance. Teens who pay for their own auto insurance are more willing to take steps to bring it down. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Add-ons like towing raise your premium without giving you as much value as using a towing service. By the way, your credit card might already offer this as a benefit so check.
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You can lower your auto insurance costs by asking for and comparing quotes from at least five good insurance quotes sites.
Every check that is processed attracts a fee. .While a yearly payment attracts a single check and therefore a transaction for a year, monthly payments attrract twelve. You'll then have to pay the total of twelve transaction fees..
There are also administrative costs to your insurer that are due to monthly payments. A good example of such is the expense associated with mailing payment notices..
These costs plus a profit margin for this feature is added to your premium making it more than a similar profile that pays yearly every year.
Cheap auto car insurance
The longer you stick with the same insurer the more you stand to gain for two reasons: The long term discount and accident forgiveness. Some insurers will give you up to 5% in discounts once you've been with them for up to three years while others will give you such a discount only when you've stayed for up to five.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. These are all incentives for you to stay with them for as long as possible.
But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.
"Pimping your ride" does NOT help if you want lower rates. If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
It's a known fact that young drivers attract high rates. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. It will drive it up by a huge margin. You can discuss with your agent about signing an exclusion form so that your teen driver can have his/her own auto policy.
Let your teen bear the responsibility of paying for their auto insurance. Teens who pay for their own auto insurance are more willing to take steps to bring it down. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Add-ons like towing raise your premium without giving you as much value as using a towing service. By the way, your credit card might already offer this as a benefit so check.
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You can lower your auto insurance costs by asking for and comparing quotes from at least five good insurance quotes sites.
About the Author:
To get more tips click here: Auto insurance in Virginia. Chimezirim Odimba writes on insurance.
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