Car Insurance Rates -- To Save Much, Try These

Everyone out there would be very happy to find a way to enjoy affordable rates provided such a way will NOT downgrade the quality of coverage they get. Here are steps that will help you attract big discounts without difficulty...

1. There are cars that cost much more to give adequate auto insurance coverage. It will be a wise move if you ask your agent before buying your next car. A comparable car that has a bad crash rating and higher theft rate will be more expensive to insure.

Also, vehicles that generally cost more to maintain also cost more to insure. Asking the right questions will help you avoid the "wrong" car and get cheaper rates.

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2. A car with a higher safety rating will get you better rates than another with a poor rating all other things being equal. Select vehicles that have systems that improve safety. You'll qualify for a Safe Vehicle discount if your vehicle has such mechanisms. Examples of these safety features are air bags, automatic seatbelt, ABS brakes and daytime running lights.

3. Under-25 drivers get higher rates than any other age group. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.

This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. You'll be made to pay very high rates if you do otherwise. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.

If a teen is keen on driving then then should be made responsible for at least the cost of their auto insurance. Teens who pay for their own auto insurance are more willing to take steps to bring it down. Your teen will also be safer as the steps that will bring down his/her rates will make her a more responsible behind wheels.

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4. Insurers give give customers who have remained loyal a 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.

Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. These are all incentives for you to stay with them for as long as possible.

However, what you may save by switching to another insurer might far outweigh all the incentives you'll get depending on what your rates are and how much another insurer is ready to offer.

If your auto insurance rate is $2,500 and you are given a 5 percent discount when you stay for about five years you'll pay $2,500 - (5% of $2,500 or $125) = $2,375.

However, know that your rates may be raised to reflect the effect of inflation. But if you do regular shopping for auto insurance you'll almost always get an insurance carrier within those years of waiting who will give you a similar coverage for less. If this is true about you then you know it's wise for you to go for the better offer right away and not wait for years to become entitled to a discount that will not even save you as much.

Furthermore, in most cases, most folks can actually pay a lot less than they are currentl on auto insurance if they do extensive shopping.. Considering that the process of obtaining and comparing auto insurance quotes requires just minutes, I will wonder why you will not do that instantly and get cheaper auto insurance rates immediately.

5. Complete a defensive driving course. In addition to improving your driving, they will get you a discount with your insurer provided such a course is one they approve.

6. It's easy to save a few hundred dollars on a home but lose thousands over the years on auto insurance because of its location. 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. The truth is that most people don't think about this when they are about buying a home.

Since you may live in the same home for decades to come, a difference of $200 in auto insurance rates would amount to thousands over the years.

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7. As an under 25, you can pay cheaper auto insurance rates if you use your parents' policy. If you are of driving age, then your parents certainly are far above 25 years which means they are lower risk drivers.

There are two conditions that you must fulfill for this to be possible: The vehicle must be registered in your parents' name and you must live with them. If you do not like the idea of handing the car's ownership to them and other stuff that may be attached to that, then you will have to forget this alternative.

8. You will save much money in auto insurance if you get and compare auto insurance quotes from quotes sites. You'll realize savings if you go to only one quotes site. However, you will get better results by using at least five.

The simple logic in this is that you will receive many more auto insurance quotes from a wider range of insurers. This raises your chances of getting better quotes.