Paying your premium annually will attract cheaper rates than opting for monthly payments. Although this alternative is often more convenient, it is more expensive for some reasons..
If you do transactions with banks you will agree with me that each check you process is regarded as transaction which attracts charges. In a year, your monthly checks would be processed separately since they are all separate transactions. You'll then have to pay the sum of twelve transaction fees..
There are also administrative costs to your insurance provider that result just from taking monthly payments. A good example of such is the cost associated with mailing payment notices..
These and more are then included in your premium thus making it more than if you paid every year.
You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.
The accident forgiveness discount means that your insurer will not raise your rates if you file just one claim. These are all incentives for you to stay with them for as long as possible. The longer you stay, the more you'll save.
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. Things like changing your tires to bigger ones than specified by the manufacturer, adding equipment that will increase your car's horse-power will cost you a lot more.
It's a known fact that young drivers attract high rates. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. You'll be made to pay very high rates if you do otherwise. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
If a teen is keen on driving then then should be made responsible for at least the cost of their auto insurance. This act will save you more than money as your teen driver will happily listen when suggestions are made on things that will bring down the high rates they pay. Your teen will also be safer as the steps that will bring down his/her rates will make her a more responsible behind wheels.
There are useful extras and there are those that do nothing but just inflate your rate. A good example of the later is adding a towing service to your policy. Have you checked to see if your credit card doesn't already offer this as added value?
Even if yours does NOT add this kind of service, a dedicated towing service from a third party will serve you better and save you more than adding towing to your auto insurance policy.
And...
The most vital step to huge savings in auto insurance is comparison shopping -- Given that you do it right. You can get quotes that will have a difference in excess of $1,000. You could quickly save that much by simply choosing the lowest quote. That should be the case if you're simply after the lowest price.
Howbeit, if you want the best price/value then you'd have to look at the details of the cheapest quotes. Different insurers may have different exclusions for similar policies. It's a good idea to ask the agent what's included and what's excluded.
If you do transactions with banks you will agree with me that each check you process is regarded as transaction which attracts charges. In a year, your monthly checks would be processed separately since they are all separate transactions. You'll then have to pay the sum of twelve transaction fees..
There are also administrative costs to your insurance provider that result just from taking monthly payments. A good example of such is the cost associated with mailing payment notices..
These and more are then included in your premium thus making it more than if you paid every year.
You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.
The accident forgiveness discount means that your insurer will not raise your rates if you file just one claim. These are all incentives for you to stay with them for as long as possible. The longer you stay, the more you'll save.
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. Things like changing your tires to bigger ones than specified by the manufacturer, adding equipment that will increase your car's horse-power will cost you a lot more.
It's a known fact that young drivers attract high rates. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. You'll be made to pay very high rates if you do otherwise. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
If a teen is keen on driving then then should be made responsible for at least the cost of their auto insurance. This act will save you more than money as your teen driver will happily listen when suggestions are made on things that will bring down the high rates they pay. Your teen will also be safer as the steps that will bring down his/her rates will make her a more responsible behind wheels.
There are useful extras and there are those that do nothing but just inflate your rate. A good example of the later is adding a towing service to your policy. Have you checked to see if your credit card doesn't already offer this as added value?
Even if yours does NOT add this kind of service, a dedicated towing service from a third party will serve you better and save you more than adding towing to your auto insurance policy.
And...
The most vital step to huge savings in auto insurance is comparison shopping -- Given that you do it right. You can get quotes that will have a difference in excess of $1,000. You could quickly save that much by simply choosing the lowest quote. That should be the case if you're simply after the lowest price.
Howbeit, if you want the best price/value then you'd have to look at the details of the cheapest quotes. Different insurers may have different exclusions for similar policies. It's a good idea to ask the agent what's included and what's excluded.
About the Author:
For more tips visit Safe Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba helps you pay less for more.
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