How To Cut Your Auto Insurance Costs

With this challenging economic times upon us, all of us are looking for the best bargains and finding great auto insurance at a good price is certainly one goal that everyone has. Fortunately, there are lots of ways that will help save money and it’s just a matter of knowing what they are. Let’s check out some of the most popular ways how folks are cutting their auto insurance expenses.

Obviously, the first thing we can do is shop around. Not only do shopping around allows to compare companies and benefits, it also makes us aware of what is a better value. The fact is there many companies out there that are willing to give you a good rate for your business but unfortunately there are some who will not. For these reasons, you should take your time and do a little homework before making your final decision.

Probably the most effective way of keeping your auto insurance costs low as to not be involved in auto accidents. If you are accident free, you get by far the best rates. If you have become involved in an auto accident in recent times, strive to go 3 to 5 years without having another accident and you will be able to take damage of much better rates.

If you are purchasing a new car, and make sure they have airbags. Airbags greatly reduce the cost of auto insurance. Also if you are looking for a new car, anti-lock brakes or another feature that will help reduce your insurance cost. One more thing to consider if you are looking for a new car is to try to purchase a new car as opposed to a used one. Many folks just aren’t aware that brand-new cars will actually save you money on car insurance.

You’ll be very surprised to find exactly how much you can say if you just do the simple things listed here. As you can see, most of them are pretty simple. It is just a matter of being aware of the factors that affect your auto insurance costs.

Small Business Auto Insurance – Insuring Your Business Assets

Small business auto insurance even for those running a small business is sometimes deemed necessary and sometimes not. If running a small home business most of the insurance pundits suggest judging how much you’ll be using your car for business purposes and what liability issues may prevail and then deciding whether to go with personal or small business auto insurance.

When It’s The Right Insurance To Buy

OK so now you’re wondering when should you buy small business auto insurance. Well you should buy it if you are going to be making ample use of your vehicles. For instance, a plumber operating from his home would want to have small business insurance whereas someone who is a writer wouldn’t. The point of comparison here is that these are both home based businesses. The plumber uses his home as his office and point of return and departure, he stores his equipment and other necessities at his home. The writer works at home and may actually use her car less than someone going to the office or some other form of job outside the house since she stays home typing all day.

The plumber needs liability coverage for his vehicle and his company needs to be covered in case he damages any property belonging to a client, as well as covering any possible employees. So here we have examples of two home businesses and two very different insurance needs.

The Cost Of Auto Insurance

Cost is always uppermost on people’s minds. We want to get the most bang for the buck and naturally the same holds true when buying insurance. The ease of getting many a quote from which to compare policies makes it possible to efficiently shop around and sometimes even qualify for their discounts.

Generally speaking small business auto insurance is priced the same as personal auto insurance. Such factors as the number of miles driven per day, who is driving and driving records of those driving are standard no matter whether buying personal or business auto insurance. With business insurance though comes the added emphasis placed on liability. The higher the limits the higher the premium but depending on what the business entails that might just be a necessary evil to swallow as part of the business expenses. The old adage better to be safe that sorry is a good one to follow when purchasing this type of insurance.

Want to Reduce Your Auto Insurance Costs? Let Me Count the Ways!

We all complain about the mounting cost of automobile insurance. So what are our options to lower our auto insurance expense? Take a look at the following list of opportunities to reduce your auto insurance.

1. Plan For And Include Auto Insurance Costs Into The Cost Of your Auto Purchase
To begin with, buying a car is a significant initial expense and auto insurance is a sizable subsequent expense in your ongoing cost of ownership. You should always look into what your insurance costs are going to be on any vehicle you consider buying.

2. Research Auto Insurance Rates On Different Makes And Models Before Buying Your Car.
Insurers rate vehicles on a risk scale based on statistics that cover a range of factors such as exposure to risk of injury or theft, vandalism, flashy or sporty vehicles, cost, cost to fix, past claims history, overall safety record, etc. The higher the risk, the higher the insurance premium. Many insurers offer discounts for low-risk vehicles such as sedans and station wagons. Check out this information with your state or provincial insurance agencies before you to decide what car to buy.

3. Research And Get Quotes From Several Insurance Agencies
Once you have decided on a make and model of car, the best way to make sure you are getting the most affordable price for your auto insurance policy is to do your research and compare, quotes. You should obtain a number of quotes from different insurers as coverage costs from one insurer to the next can vary by hundreds of dollars, and possibly thousands of dollars. Get at least three price quotes. Call insurers directly or get online quotes. Provide the same coverage, deductibles and limitations so you can compare apples with apples. Nowadays, comparison sites do all the legwork for you and provide competing rates side-by-side. Visit some of the sites advertised on my website listed below.

4. Save Money By Raising Your Deductibles
You can reduce your insurance premium considerably by increasing the deductible on the comprehensive and collision portion of your insurance policy. However, keep in mind that in the event you have an accident and file a claim, you will have to pay the deductible out of your own pocket. So make sure you can afford to do that. You can save 10 percent or more by increasing your deductible from say $500 to $1,000. If your claim is $2500 and your deductible is $1,000, you will pay $1,000 and your insurance company will pay $1500.

5. Save Money By Purchasing Home And Auto Insurance From the Same Insurer
Purchasing your home and automobile insurance policies with the same insurer may qualify you for a further discount, which may shave up to another 10% on both policies. Most insurers offer this saving as an incentive to get your home insurance business too.

.6 Save Money By Including All Vehicles Under The Same Policy
Similarly, many insurers offer a multi-auto discounts for those who insure more than one car on the same policy. You can save up to 10% by placing more than one vehicle under the same policy.

7. Save Money By Maintaining A Good Driving Record
Your driving record is a significant factor in determining your insurance rate. If you have a clean driving record (without accidents, traffic tickets, drunk driving convictions, etc.,) you may be eligible for further discounts on your auto insurance policy. A bad driving record can become very costly in terms of insurance premiums, as you may take three years or more to wipe out past misdemeanors off your record.

8. Save Money By Maintaining A Good Credit Record
Insurers are increasingly using credit information to price auto insurance policies. Developing and maintaining a solid credit history can reduce your insurance costs. To protect your credit status, pay your debts on time, don’t get more credit than you need and keep your debt balances as low as possible. Review your credit record often and ensure your record remains accurate by getting errors corrected promptly.

9. Save By Asking For Low Mileage Discounts
If you are retired, semi-retired, car-pool or use public transportation to go to work, and generally keep your annual car mileage as low as possible you may be eligible for a low-mileage discount. The low mileage limit is generally around 10k-12k miles per year depending on the state or province you live in.

10. Research Other Discounts
Other discounts may be available if you meet certain conditions. Examples may include age group, low mileage, occupation, if you install an alarm or other safety devices in your car, taken a defensive driving or drivers education course, are a member of an auto club, or loyal to the same auto insurance company for a number of years. These discounts vary by insurer.

11. Inquire about Group Insurance
Some insurers may offer discounts to drivers who obtain insurance through an employer provided group plan, through professional, business and alumni groups, or trade associations. Ask your employer and check with groups or clubs you are a member of to see if you are entitled to such discounts.

12. Drop Collision Coverage On An Older Car
If your car is 10 years or older, you may want to consider removing the collision coverage on your policy. Before you do this, you need to weigh the cost of the collision coverage with the value of your car and your chosen deductibles. For example, if you had a 12-year-old car that was worth about $1,000, and your deductible was $1,000, that collision coverage is worth zero. However, remember that you will have to bear the cost of repairs directly out of your pocket should you get into an accident.

13. Take Defensive Driver Training Courses
Safer drivers pay lower insurance rates. Taking state and/or insurer approved defensive driving courses in the past 3 years will get you reduced auto insurance premiums.

14. Install Safety And Anti-Theft Devices In Your Car
Insurers may give you discounts on your auto insurance if your car is equipped with one or more of the following options: Anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems may also get you a discount because they reduce the chances of your car being stolen or vandalized.

15 Reduce Auto Insurance By Moving
If you move from urban big city traffic location to a rural area with little crime and traffic congestion, your premium will generally be lower. Of course, you would do this only if it is in keeping with other life-style decision factors.

16. Where Do You Park Your Car?
If you park your car in a garage, you may be entitled to a slight premium reduction. Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles.

17. Develop A Relationship With Your Insurer
If you have been with one insurer for a long time, most will charge an existing client who has more than one recent claim less than they would a new client in the same situation.

18. Keep Your Insurer Up To Date
Make sure your insurance company always has correct and up-to-date information on file. For instance, if you relocate from an urban to a suburban or rural area, your rates may go down.

The key to auto insurance savings is not the discounts, but the final price. An insurer that offers few discounts may still have a lower overall price. The discounts listed may not be available in all states or provinces or from all insurance companies, so once again, it pays to do your research as the savings are just too significant to lose!