Auto Insurance Tips to Lower Rates

Auto Insurance Tips to Lower Rates   by Maria Barber

Note that every insurance company is different, and many consumers are able to save money on auto insurance by remaining with the same company for years. But another plausible way to save is to investigate insurers that offer good, affordable rates as well. Individuals who consider what they do, and don’t, need in the way of coverage options can accomplish this more readily.
1.High deductibles: This is usually the easiest way to cut costs, provided the driver is not involved in too many accidents.
2.Remove towing: Good maintenance and planning can save money as well. Of course, don’t run out of gas. Don’t lock the keys in the car. Make sure to have a spare and know how to change it. Sometimes the car will break down, but if it is well maintained, it won’t happen often. The cost of one tow could be the difference between saving on insurance or not.
3.Remove car rental: Small economy cars cost about $20 to $25 per day to rent. Car rental is $20 - $40 per year. Play the odds. If renting a car while on vacation, the insurance will cover the insured while driving that car. Don’t pay for the extra coverage. The only things it offers are:
Zero deductibles
Downtime coverage: Downtime means that while a damaged rental car is in the shop being repaired, it can’t be rented out to other customers and the rental company will charge the insured for the daily fee. This may be an issue if they can show that all other cars were rented out and they lost money because of this. But, again, it’s a risk one might decide on, rather than pay $21 a day for the insurance.
There are other steps one can take to save on car insurance

Shop ahead: Before buying a new car, check on insurance rates. Many people assume that SUVs are expensive but this is not necessarily true. Some companies will increase the liability based on the cost of damages a certain type of vehicle may inflict (big trucks cause big damage).

However, they also rate the autos based on how likely they are to be damaged in an accident, how often they are stolen, and how badly driver/passengers are injured. Smaller cars going to be a lot more expensive than one might think. Many insurers will have websites that will give lists of safe and lower priced cars.

Think twice about after-market gizmos: If a vehicle is totaled or stolen, the insurance company will determine a fair market or actual cash value. They will look at the vehicle as a “whole package.” Even if the owner paid for $3,000 in after market items (wheels, spoilers, stereos, exhaust, etc.) they may only add $1,000 in value to the vehicle. It’s generally not dollar for dollar.

Have all insurance policies in one place: By having multiple policies with one broker, the more savings in discounts. Find out if the insurance carrier offers any breaks for low-mileage, or for taking a safety-driving course. Some companies offer a discount for this.

About the Author

Maria T. Barber is an Insurance Agent for Byrnes Agency in Connecticut which specializes in Home and Auto Insurance and Business Insurance.