Ideas to Low Cost Auto Insurance
Its not always possible to save on auto insurance though some companies like to say that you can save 15% or more, if you will just give them a call. Still significant discounts from what you are currently paying are often, if not always, available.
If you’re ready to go price shopping, be sure to get price quotes from more that one company. You need to understand that each company not only has different prices but also different ways of calculating those prices and many different coverage options. Make sure that you are comparing similar coverage from company to company.
The following four areas are things to consider if you want to save money on your auto insurance:
1. Piggyback Policies – Check first with the company that insures your home or provides your life insurance. Often the company that provides other insurance to you will give you a special discount on a new auto insurance policy. They may see you as a preferred risk or simply want to treat you as a preferred customer.
2. Group Policies – Just like group health insurance, you can usually get better rates if you are part of a group automotive plan. That’s because insurers are able to average and spread the risk over a group of people who have lower accident rates than the general public. Groups include professional organizations, companies, alumni groups and hobbyists like motor cycle clubs, antique car clubs, etc. Some groups like AAA save millions of dollars a year for their members.
3. Good Behavior Discounts – Good behavior covers a wide array of issues that insurance companies have found correlate to lower policy risks. Each company has different criteria for awarding good behavior discounts. For example, some companies give lower rates to students for good grades or for taking drivers education courses. Or adults might get a discount for an accident free driving record or for taking a defensive driving course.
4. Company Size – The size of the insurance company you use might also have an impact on your rates. Sometimes smaller insurance companies provide lower rates to a certain segment of the population or to people who live in a certain area, in an attempt to expand their customer base. Be sure to include at least one smaller company in your price quotation requests.
Comparing your current insurance rates with what other companies have to offer often pays big dividends. It may even be a good idea to do a price comparison every year or two since companies, markets, and economic conditions change rapidly from year to year.
The auto insurance industry is very competitive and if you look hard enough you can usually find some company willing to undercut its competitors rates in order to get your business.
If you liked this article by Bill Brankar then you’ll enjoy his site on general-auto-insurance where he discusses about the art of auto-insurance-comparison.
