AUTO INSURANCE ARTICLE
Getting Cheap Auto Insurance
By: letter_womanTightening our belts on other bill payments is but one of the logical things to do, in the face of this financial crunch. And if you are like the rest of the average salary-earners, you might be looking at getting a significant reduction in your auto insurance premiums. Here are some of the points you might want to discuss with your auto insurance representative:
Upping your deductible – this means increasing your share of the cost of a claim. If you voluntarily increase the percentage of what you are willing to pay in the event of an accident claim, your insurance company will consider dropping your premium rates;
Collision coverage scrapping - letting go of your old car’s collision coverage can significantly pull your premiums down. Because the older the car gets, the more expensive is its coverage. So removing collision coverage on an older car will slim down your premium cost. But it is advisable and necessary to retain coverage on your newer car/s.
Package insurance – availing of the insurance services of a one-stop insurance company for your car/s and home needs might give you significant discounts. The company may give you discounts on the basis of loyalty rewards or their VIP rates;
Theft-deterrent installation - installing an approved theft deterrent system in your motor vehicle provides it with first-degree protection that the chances of it being stolen are reduced. This in turn reduces the chances of you making a theft claim against your auto insurance policy;
Lower-cost insurance rating cars – you may want to compare and ask about different cars’ insurance ratings. If you buy a car with a lower-cost insurance rating, getting it insured for a lower premium is guaranteed:
Restrict auto insurance policy – discuss with your auto insurance representative how your policy will be affected and your premium adjusted, if you exclude high-risk drivers from your coverage. This way, you are not penalized with a higher premium by the fault of others who are part of your auto insurance policy;
On your own, you might also want to take note of the following:
Keeping an accident- and conviction-free record – the rule of thumb is that, the more spotless your driving record is, the better command you will have on auto insurance premiums. Conversely, the more accident record you have, the more expensive is your insurance premium payments going to be.
Lowering your mileage - you may want to consider managing your car use to a limit per year, by taking alternative transportation such as car-pooling or public transit if possible. With a lower mileage and lower use, your car will be less prone to mechanical malfunction and damage;
Up-to-date premium payments - late payments can also add extra costs to you because auto insurance companies would generally slap penalties and interests on your unpaid premiums.
Contract completion. Try to stay with your current auto insurance company at least until the middle of the year. And better if you can switch companies only until your contract ends, so as to avoid any early cancellation penalties.