AUTO INSURANCE ARTICLE

Cheap Auto Insurance: How to Pull Costs Down

By: regalado

According to projections for the auto insurance industry, premium costs may not go down in the near future. On the contrary, at least until 2009, estimates are that auto insurance premiums would be on an upswing movement. This is mainly attributed to increases in the average amount paid on bodily injury claims which in turn is caused by increasing costs for medications and hospitalization.

This is not good news for average-earning motorists like us. But here are some tips on how to pull your insurance costs down, despite national trends of skyrocketing auto insurance premiums:

Check the insurance rating of your vehicle - You may want to choose from among many selections based on different cars’ insurance ratings. A car with a lower-cost insurance rating assures you great savings once you sign it up for coverage. Some cars are more expensive to insure because of their brand, sticker value, maintenance and repair costs, availability of spare parts, its safety mechanism, and its likelihood for theft.

Volunteer a deductible raise. The lower your deductible, the higher is your premium. And if you raise the percentage of what you assume in an accident claim, say, from $300 to $500, to $1,000, you cut costs by something within the range of 10%, 25% to 40%, respectively.

Scour for discounts. There are many possible discount possibilities depending on the auto insurance company’s offer, your negotiation skills, or simply by just your ability to ask for it. If you sign-up your home, car, and health insurance, for instance with one company, chances are, you can avail of big discount rates. Check also if your profession or line of work is classified under low-risk category, it might just give you some hundreds of dollars in savings. Student with good grades? Some companies see this as a signal for a disciplined driving behavior, so show those A’s.

Surf and click. With the information technology, comparing various offers, various policies of a number of auto insurance companies is just within the tip of your finger. More of than not, getting quotes online will give you the added advantage of seeing which company offers the best coverage for the cheapest premium.

Safety first. Have air bags and alarm systems installed in your vehicle. If your car is equipped with first-degree protection the chance of it being stolen is significantly lower. It protects your insurance company in turn from you making frequent, if at all, theft claims.

Have a driving refresher course. If you are beyond 55, you may also want to take a refresher course on defensive driving. It does not just have an effect on your insurance, but also on your confidence as a driver.

Have alternative transportation. The less your car goes on the road, the lower is its mileage, the less is it susceptible to wear and tear – a factor which your auto insurance considers in assessing your premium rates. Take public transport. Organize or join a carpool to work. Bike for errands near your home. Bring those feet to move – walk!

But always remember that keeping your driving record clean trumps all the other cost-controlling factors.