With the never-ending economic recession, we all want to get the best value for the dollar spent. Getting the cheapest insurance while not compromising on quality should be on top of all American drivers' priorities. Here is a short car insurance savings guide.
The premiums are proportional to the risk you pose for the insurer. If your car is likely to be stolen or vandalized – like a $120,000 limousine parked in a bad neighborhood – then your premiums will shoot through the roof.
Do your best to protect the car. Renting a garage or a spot in a private parking lot could do miracles to your insurance expenditures. Install anti-theft devices – even a simple wheel lock is good to start with. For a more expensive car you will want remote alarms and GPS trackers.
Most, if not all insurers will give you a discount if you choose yearly policies rather than quarterly or biannually – usually a 5-10% discount. Even better, the insurance company is bound to keep the same rates throughout the whole year, so they cannot raise your premium before the contractual deadline if you are at fault in an accident.
Before renewing a policy or switching to another provider, re-check your needs. A lot if insurers don't re-evaluate your file and let the old terms carry over to the new period. If your driving needs have changed, you have bought or sold another car, you have a kid on your policy or you just don't drive as much as you used to, you might need another insurance package that won't necessarily cost the same as the old one.
Don't get more insurance than you need. Some unscrupulous sales assistants will try to talk you into buying coverage you don't necessarily need – they are paid on commission base so the more they sell, the more they cash in at the end of the month. Do your homework and decide for yourself exactly what you need.
This tip is often overlooked, but processing fees like $5.00 per mailed in check pile up over the long run, and going with the cheapest payment option could save some consistent amounts over the lifetime of a policy. Choose EFT payments if available – fees are close to none, payments are automated and you don't have to worry about writing checks and mailing them in before the bills are due.
A lot of insurers offer consistent discounts if you are member of a certain group or organization. This could mean anything from owning a certain credit card or a club membership to being a war veteran. Make sure you contact your insurer and get a list of the discounts they offer – you may be eligible for one or more.
The list could go on, but these are the main tips you should keep in mind when trying to save on car insurance. Check the car insurance company ratings before you sign the policy. Do your homework and don't take the insurer's first offer without a little research.
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