Vehicle Insurance Rates -- To Save Much, Apply These

Do you want a lower rate while maintaining sufficient coverage? Here are steps that will help you attract considerable discounts easily...

1. Certain cars cost much to insure. It will help a lot if you ask your agent before buying your next car. Two things that will make you pay more for auto insurance are a car's crash rating and theft rate.

In addition, it will also take much more to insure a car that is more costly to fix or maintain. With a little diligence you can avoid buying a vehicle that will cost you thousands in higher premiums over time.

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2. You will get cheaper rates if your car has a higher safety rating. Does your car have built-in safety features? They will make you eligible for a Safe Car Discount. Examples of such safety features are air bags, automatic seatbelt, ABS brakes and daytime running lights. Your insurance agent can give you a list of safety devices that will make you eligible for a discount with your insurance company.

3. It's a known fact that young drivers attract high rates. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.

Therefore, as much as possible, do not place such a driver on your own policy. It will have an adverse effect on your rate. Sign an exclusion form that will allow your teen driver have his or her own policy.

Let your teen bear the responsibility of paying for their auto insurance. This act will save you more than money as your teen driver will happily listen when suggestions are made on things that will bring down the high rates they pay. The full implication of this is that your teen will be a lot safer as they'd do their best to avoid inflating their rates.

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4. The longer you stick with the same insurer the more you stand to gain for two reasons: The long term discount and accident forgiveness. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.

Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. Insurers offer these as incentives to keep you with them since it serves them better too. The longer you stay, the more you'll save.

But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.

If your auto insurance rate is $2,500 and you get a 5 percent discount when you maintain a policy with them for up to 5 years you will pay $2,500 - (5% of $2,500 or $125) = $2,375.

But because of inflation, insurers may have to make adjustments in their rates to reflect such changes. Between these 3 years you might get an insurance provider who will offer you the same auto insurance coverage or better for under $2,000. If this is correct about you then you know it's wise for you to go for the cheaper offer immediately and not wait for years to become entitled to a discount that won't even save you as much.

you will most likely get lower rates if you make out time to shop right because there are hundreds of auto insurance companies around. You can only know if this is true in your case if you get and evaluate quotes from many different auto insurance companies and then see where you'll gain more..

5. Defensive driving will help reduce your rates so take a course on it. Apart from the fact that they will help lower your rate, they will make you a safer driver.

6. Do you know that some folks are paying much more in auto insurance because of where their homes are? Do you know also know that homes within the same neighbor might actually fall into different risk zones according to the insurance industry's mapping?

Therefore, take your time to ask your agent what effect your new zip code would have on your rates before you make that down payment. I know: That isn't usually an issue when you're looking for a home but it's really important.

Remember, you might live in this home for up to 20 years or more. If its location makes you pay up to $200 more in premium, that will add up to $4,000 within that time frame.

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7. A good alternative for you is to use your parents' auto insurance policy. Your parents certainly belong to a lower risk age bracket.

You must remember that the car must be registered in their name and you must be living with them if you want to take advantage of this option. This means that by law they own the vehicle. If the benefits of "independence" outweigh your auto insurance savings then this is definitely not alternative for you.

8. You will save a lot of money in auto insurance if you obtain and compare auto insurance quotes from insurance quotes sites. You'll realize savings if you go to just one quotes site. But keep this in mind, you will get better results by visiting at least five.

The straightforward logic in this is that you will get a greater number of auto insurance quotes from many more insurers. This increases your chances of receiving better quotes.

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