Car Insurance -- Steps That Will Help You Save Considerably

A cheap rate can be achieved in many ways. But at the same time, a number of options people employ in order to cut cost usually result in less than sufficient coverage. But in this article, I'll share several time-tested ways of paying less while you maintain adequate coverage....

1. If you maintain collision and/or comprehensive for an old vehicle that isn't a classic, then you are spending much more than is necessary. This is because you're reimbursed based on what is called the Kelly Blue Book value of your vehicle as at when you file a claim. This shows that not minding how much you spen on premiums and for how long you did, you may get NOT even a cent if that book declares the vehicle is worth nothing by the time you make a claim.

Therefore, do yourself a favor and leave out these types from your auto insurance policy for all old vehicles. Doing this will save you much and not put you at risk at the same time.

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2. You deserve a sizeable discount if a child on your policy doesn't use the vehicle for a considerable length of time because he/she is away at school. Don't miss this if your kid is away at school. Just note that some insurance companies don't give this discount.

3. A thorough review of your auto insurance policy could reveal several places you are throwing away money. It is sad to note that a lot of folks still pay for coverage points that made sense yesterday but no longer need for now. Have you though of dropping your just-wedded girl from your policy?

The changes in your life might have qualified you for certain discounts. You might also have "outgrown" the need for some coverage types.

Review your policy at least once a year. You'll be pleasantly surprised if you discover that you need to make adjustments or if you see changes that will bring about remarkable savings.

Affordable Auto Insurance

4. A simple but rewarding way of bringing down your rate is by authorizing an EFT (Electronic Funds Transfer). This just means your insurer takes your premiums automatically from your account each month without mailing you payment notices. This eliminates administrative costs like those incurred when mailing payment notices. An insurance carrier gives you part of what they save by reducing your premium.

5. Insurers give give customers who have remained loyal a 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.

Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. Insurers offer these as incentives to keep you with them since it serves them better too.

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.

Let usassume, that you will get a 5 percent (or $125) discount after your third year with an insurer where you current auto insurance premium is $2,500.

However, due to inflation, insurers may have to make adjustments in their rates to show those changes. But while you're at it, an insurer somewhere may be prepared to give you a rate of $2,000 or less within that period. In such a case, it is of no value to stay put because you are after a discount years later when you can pay less at the moment.

And, in nearly all cases, most folks will actually pay a lot less than they are currentl on auto insurance if they do extensive shopping.. You can only be sure if this is true in your case when you get and compare quotes from a good number of auto insurance companies and then see where you'll gain more..

6. Add-ons like towing raise your premium without giving you as much value as using a towing service. Have you checked to see if your credit card doesn't already offer this as added value?

Overall, you're better off using a third party towing service than placing it on your auto insurance policy.

Affordable Auto Insurance

7. Doing business online is cheaper and more efficient. This also applies to buying and selling auto insurance. Compared to buying offline from a brick and mortar business, you'll save up to 15% if you buy your auto insurance policy online.

This makes it obvious that you'll save a lot more if you buy online.

While you do this make sure you give correct details. Insurers are mandated by law to cancel any policy once they can prove that the policy holder gave false details.

If you choose to buy online, don't forget to do due diligence: Check with your state's department of insurance to ensure the company you're buying from is licensed to sell auto insurance in your state. Don't also fail to check their rating.
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