Lower Your Auto Insurance Premiums

Lowering your auto insurance rates can seem like an impossible mission. However, there are 10 simple things you can do, (besides the most obvious, and without questions most effective action of) having a spotless driving record, to get the best rate for yourself.

1. Shop Around
   
   Get quotes from several different insurance companies. Different companies will vary in the way that they interpret their risk for your situation. Using the other tips on this page obtain the best price that each company can give you and compare.
   
   
2. Keep an eye on your credit
   
   Insurance companies will periodically review your credit to determine if you are a responsible individual. Which means that you pay your bills on time and that your debt to credit ratio is under control.
   
   
3. Re-think the car you drive
   
   Before you buy a new or replacement car, obtain quotes for that type and year vehicle. Some cars are considered high risk of theft, or carry the potential of aggressive driving. Sport cars will typically cost more to insure than their sedan relative, not to mention the vehicles overall safety rating. The safer a vehicle the less risk the insurance company has to pay high medical bill in an accident.
   
   Additionally, discounts are available for cars with build in anti-theft and recovery devices, daytime running lights, traction control and electronic stability systems, to name a few.
   
   
4. Deductibles
   
   This is the minimum amount, per incident, that a repair needs to cost before the insurance company will get involved. The higher the deductible, the lower the rate. This is a very delicate balance, since you will be responsible for, and be encouraged to pay, to have the vehicle fixed if you don’t own the vehicle outright.
   
   
5. Adjust Coverage
   
   Review your insurance policy in detail to see what you are covered for and if you need it. If you’re car is worth less than 10 times your annual policy, consider dropping collision and/or comprehensive coverage. If have another car handy, you might want to drop rental car coverage, etc. For a detail description of what this covers review Auto Insurance Basics.
   
   
6. Combine Coverage
   
   Relationship building can be a big help. Have the same company hold your auto, home, renters and even life insurance policies. Longer term and multi-policy customer receive many additional discounts. However, if you do this remember to verify the financial stability of the company you choose to ensure that they will be able to pay should issues arise.
   
   
7. Group Discounts
   
   Just like buying in bulk can save you many, there is power in numbers. Companies Insurance will offer discounts to group plans from your employer, or other professional organizations. You may even be able to establish a group plan or a plan with better rates if you and your (large) family insure through the same agent.
   
   However, the opposite is also possible. If your group has a number of high risk members, it is possible, but not likely, that your rate might be better going elsewhere, so don’t forget to shop around.
   
   
8. Communicate driving style
   
   Many insurance companies carry discounts for low manage driving. If you live close to the office or periodically work from home, ask you agent if that option is available.
   
   
9. Ask about other discounts
   
   Every company has other on advertised discounts, which may apply to you. Good grades for students, defensive driving and driver training courses. Talk to your insurance agent to see which other ones are available to you.
   
   
10. Assign Cars
    
    If you have a new / teenage driver in your household your rates can sky rocket. The best solutions for this would be to assign a lower cost vehicle to that individual to driver and let your insurance company know. The hard part would be sticking to that assignment, but as that person gains experience their rate will decline over time.