Tips For Lowering Auto Insurance

Shopping for a car insurance policy doesn’t have to cause frustration and anxiety, but many people still dread the task of finding insurance. Most people fear the high premiums and excessive coverage costs that insurance companies can impose. Fortunately, comparison-shopping allows an individual to find a rate that they will be happy paying. It always pays to shop around because insurance prices vary from company to company. Although it’s easy to call a company directly, the Internet makes it easier than ever to compare auto insurance companies and access information to make smart decisions.

Searching for Discounts

The first step in finding a great car insurance rate is to seek out discounts. Individuals should be sure to gather information on specific discounts. For example, changing the cars tires on a seasonal basis can help a customer save money on their insurance costs. Low mileage discounts are also available from some insurance companies. Low mileage discounts apply to individuals who drive a lower than average number of miles a year. A person that car pools, walks, bikes, or takes public transportation often may qualify for a low-mileage discount. Another common discount goes to good drivers. Most insurance companies are willing to give a financial break to drivers who haven’t had any accidents or tickets for a number of years.

Never Pay for Coverage That isn’t Needed

Fortunately, not every driver is in need of all the coverage offered by an insurance company. An individual that can do without collision or comprehensive coverage should notify the insurance company to save on costs. Asking for a higher deductible can also reduce the costs. The only downside to a high deductible is that the person is responsible for that portion of the costs if an accident occurs. An individual should never think about bumping their deductible up if they can’t afford it.

The Type of Car Matters

Individuals should also consider the type of car they plan to insure. It’s significantly cheaper to insure a Ford than a Mercedes. Luxury vehicles and convertibles can be expensive to insure. On the other hand, owning a SUV or older vehicle can help a customer save money on their policy. Individuals should also avoid cars that are expensive to repair or popular with thieves. The safety of the car is also a factor that auto insurance companies consider. A car that has antilock brakes, anti-theft measures, airbags, and daytime running lights can make an insurance policy less costly for a driver.

Teen Drivers

Most parents are frightened about the possibility of their teenagers getting into an auto accident. It isn’t just parents who fear teen drivers, but auto insurance companies also fear them. The cost of adding a teenager to a policy can cost anywhere from a few hundred dollars to several thousand per year. Fortunately, there are some ways that teens can get a lower rate with auto insurance companies.

One of the best ways they can reduce premiums is to do well in school. A lot of insurance companies offer discounted rates to students who maintain at least a “B” average in school. These discounts are often referred to as “Good Student Discounts”. The discounts are usually up to 25% depending on the company.. Some insurance companies will even offer discounts for teenagers that have taken state-approved drivers education courses.

The Value of a Good Policy

The right auto insurance can protect a person financially and provide them with peace of mind. A good policy allows a person to protect themselves and those around them. A good policy will give an individual the security of knowing that they can drive confidently without any worries that an accident would financially ruin them.