Auto insurance can cost a lot of money, but it doesn't have to be that way. There are ways to get inexpensive auto insurance without cutting corners. All it takes is a bit of common sense and some knowledge of just what to look for. Here are a few money saving tips for anyone looking to save a little extra money on a good vehicle insurance policy. One of the keys to this is to shop around for the best deals, since very company has different premiums and levels of coverage.
- Search for the best rates. There are websites that publish auto rate guides for any particular state. These will inform the searcher which types of coverage are required in that state, as well as offer sample rates from various auto insurance companies, just to get someone started.
- Go for the higher deductible. The deductible is the amount of money the policy holder has to pay before the insurance company will pay for the rest, up to whatever the policy allows. Drivers with a higher deductible will pay less each month. For example, taking a $500 deductible rather than a $200 deductible on collision coverage could reduce the premium by up to 30 percent.
- Do not take collision or comprehensive coverage on older vehicles. When a car is worth only about $1000, or even less, it really isn't worth it to have this type of coverage, which may end up costing more than the car itself. A local bank can assess the value of a particular vehicle.
- Buy a low-profile car. High profile cars are sports cars, or cars that have a higher rate of theft. Sticking to basic models will result in a lower premium.
- Look for low-mileage discounts. Some companies offer discounts for drivers who drive less than a certain pre-determined amount per year.
- Consider insurance costs based on locality. Highly populated cities with high traffic density and high crime rates will have higher insurance rates than more rural or quiet suburban areas.
- Look for safety feature discounts. Such safety features as seatbelts and airbags will get discounts from some car insurance companies. Ask the insurance provider if they offer something similar.
- See if there are discounts for anti-lock brakes. Certain states, including New York, New Jersey, and Florida, have legislation requiring insurance to offer discounts for customers with anti-lock brakes in their cars.
- Just ask for a discount. Every insurance company is different and has different discounts. Some will offer a reduction for insuring multiple cars with them, or for filing no claims, or for being over 50, being a student, and so forth. Just ask. Many people have been surprised at just what they are eligible for.
Keep these tips in mind when searching for auto insurance. Saving money is always a good idea, all the more so in the current economy