Automobile insurance can be expensive but there are numerous steps you can take to lower your insurance premiums and save money. Some steps are easy to take such as shopping around and increasing the deductible while others are little more difficult like comparing your rate with those of family and friends. Regardless, it's always worthwhile to speak with your insurance provider as often they will be happy to work with you to save money to ensure a happy customer.
If you have children, the easiest step to take is to ask about the good student discount. Good students are often viewed as responsible people and if they're going well they probably also drive safely. If your child has a high grade point average you may be able to get a reduction in your automobile insurance payments. Depending on your history and your insurer's requirements you may have to provide proof such as a transcript or report card.
For relatively minor automobile issues it's always best to take care of them yourself whenever possible and not file an insurance claim. Getting a scratch buffed out of the paint or replacing a taillight is often less than the additional money you pay in premiums by having a lower deductible. As such, it is often better to increase your deductible from $250 or $500 up to $1000. If many years go by without having to make an insurance claim the additional money saved from the lower premiums and higher deductibles could easily repair any minor damage you incur with money left over.
Automobile insurance rates often decrease at certain ages or certain life events. Getting married, having children and getting older can all lead to a reduction in your insurance premium. Common ages at which there's often a reduction in premiums are 21 and 35 so on your birthday be sure to contact your insurer and let them know and ask about a discount. There's no incentive for an insurer to lower your rate so it's good to be proactive.
One of the more difficult things to do is to ask around and find out what other people are paying. Speaking with friends and family can be a little easier and the information you gain may prove to be valuable in determining if you're overpaying for automobile insurance coverage. While the rates might not be a direct comparison because of variables like age, vehicle and location you still might be able to determine if you're rates are at least close or if you need to take action.
If you drive a really old vehicle it may actually be a benefit to drop certain coverage from your auto insurance policy. While a brand new car that you do not own the title to may require full coverage to protect the bank or title holder, older cars often don't need comprehensive and collision coverage. Keep in mind if you have an accident you'll have to pay for repairs or replacement of the vehicle out of your own pocket.
The least fun thing to do to lower your auto insurance premiums is to drive a boring vehicle. Statistics and common sense show that fast cars often that lead to fast driving. So sports cars and luxury cars which have high dollar values and are expensive to repair will require higher premiums. If you don't mind driving a slower, older more boring vehicle consider trading down which could significantly lower your auto insurance premiums.
All of these steps can dramatically reduce the amount you're paying in automobile insurance and even doing a few of them can lead to significant savings. Periodically review coverage and contact your automobile insurance provider as more often than not they'll be happy to work with you to lower your insurance costs.
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