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How To Save Money On Auto Insurance

How To Save Money On Auto Insurance

Auto insurance is required by law in most states as a means to protect drivers and pedestrians and to lower premium costs by equally distributing insurance expenses. Even if it isn't required by law, it is still smart to protect yourself and your property by having auto insurance. Regardless of the reason, no one wants to pay exorbitant auto insurance premiums if they don't have to. Ideally, consumers can have high-quality auto insurance with low-cost premium payments and sufficient coverage to provide adequate protection. Picking a top-notch nationally recognized auto insurance provider is the first step but there are additional measures which can be taken to lower the price of premium payments.

  • Many insurers will provide discounts or incentives for bundling policies such as combining home owners and auto insurance. If you own a home and two or more vehicles it makes sense to combine them for additional savings.

  • As with any product or service it pays to shop around. Comparison shopping allows you to get multiple quotes from different insurers which can be used as a negotiation tactic to receive the best price.

  • Prior to purchasing a new vehicle always speak to at least three auto insurance companies to receive pricing estimates. If you find out a sports car you love is going to create a $1,000 a month insurance payment you might change your mind.

  • Slow down and take your foot off the gas. Speeding tickets and reckless driving are virtually guaranteed to lead a higher auto insurance premiums. If you get a ticket be sure to take a defensive driving course which can help lower premium payments.

  • Many auto insurance policies lower premium costs resulting from various life events. A few of these life events are age milestones such as turning 25 and 40 but also getting married. The expectation is that married individuals will drive safer resulting in fewer claims being filed.

  • If your insurance company offers it, be sure to pay 6 to 12 months at a time. Many auto insurance companies charge higher higher premiums for individuals who pay month-to-month. Pricing discounts can be upwards of 10% or more since it means more money upfront for the insurance company.

  • Reevaluate your insurance needs periodically. If your vehicle is 20 years or older and paid for then it likely only needs liability coverage. You might be surprised how many people still have full coverage on old junker automobiles.

  • There are many additional insurance coverages offered by companies to boost profits. Very rarely do drivers need additional medical coverage if they have health insurance or roadside assistance if they have friends and family. Don't pay for additional coverages unless it is absolutely necessary to protect yourself or your vehicle.

  • A general rule is not to make an insurance claim unless it is significantly more than the deductible. If you have a $500 deductible and $150 scratch then just pay for the repair out-of-pocket. Making a claim often increases insurance premiums for 12 to 36 months.

Hopefully, many of the suggestions will help you save hundreds of dollars a year in auto insurance premium payments. Some of these you may already be doing and others you may be hearing about for the first time. It's never a question of how to save money on auto insurance but how much do you want to save. Being proactive and periodically reevaluating your auto insurance needs and being a conscientious safe driver can lead to thousands of dollars in savings over the years.

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