Auto Insurance – You’ve probably heard the Television commercials and other ads online and off. Everybody, human or otherwise will tell you that the key to saving money your car insurance is to compare your rate with the rate that they offer.
Even though we hope that you compare care insurance rates through our site, it just isn’t that simple. Shopping around and comparing policies is just one of many things you should do to lower your insurance rates. There are some that you can do something about and some that you cannot.
Drive Safely
First and foremost is your driving record. Doing what you can to drive safely, avoid tickets, accidents and claims is probably the most important thing you can do to keep your costs down.
Consider Moving
Where you live also impacts the rates you pay. As a general rule the more densely populated an area is the more the residents pay for homeowners and car insurance. Of course a lot of factors must be considered when deciding where to live and you may have compelling reasons to want to live in Manhattan instead of a farming community in Iowa.
That being said, often moving to the next zip code can mean a twenty percent reduction in the cost of your car and real property insurance rates.
Buy Older Cars
That new car smell is very expensive. The trade off in higher insurance rates, higher property taxes and the cost of the car itself may make that smell a little less sweet.
(If you choose not to insure the car you purchase physical damage coverage for your car, in most cases the cost of the car will not impact your rates. However, physical damage coverage will be required if you have a loan or a lease on the car.
Physical damage coverage is consists of collision coverage and other than collision coverage. These parts of your policy pay when your car is stolen, vandalized or damaged under certain circumstances.
Not having this coverage has no impact on what your insurer will pay to another party. It has no impact on what another party might pay you. Physical damage coverage pays when you are at fault, nobody is at fault and when the party at fault cannot pay.)
A well-maintained car that is two to five years old (or even older) can still look pretty spiffy. A car like this might mean that you spend a little more in repairs. However, the other costs associated with the car might make it well worth it to pay visit your mechanic a little more frequently.
If you can’t bear to drive a car that belonged to someone else, consider holding on to your cars for an extra year or two before you trade them in. This can save you more than just pocket change.
Look for Discounts
Discounts are worth looking for. However don’t be fooled by the smoke and mirrors that a lot of insurance marketers use to deceive you. The bottom line is the bottom line. It does you no good to have a gaggle of discounts if you are still paying more than you would with another insurer.
Discounts to look for include:
- Good Student Discounts (for new drivers)
- Drivers Education Discounts (for new drivers)
- Defensive Driver Education Discounts (for older drivers)
- Multi-car Discounts (for insurance more than one car with the same carrier)
- Multi-Policy Discounts (for insuring your vehicles and residence with the same carrier)
Shop Around for the Best Rate
Car insurance is standardized. Most insurers sell Personal Auto Policies and these policies provide substantially the same options and coverage. Many consumers get fooled by slick advertising campaigns.
They often think that in order to get a certain benefit, they have to buy their car insurance through a particular carrier. This is not true for any of the major benefits of car insurance.
Auto Insurance Action Plan to Lower Your Rate Summary
- Drive safely because your motor vehicle record matters a lot.
- When it is time to move, find out what auto insurance costs in the different areas you are considering moving to.
- Buy older cars and/or consider keeping your cars longer before selling them or trading them in.
- Take advantage of discounts offered, but always remember that the bottom line is the bottom line.
- Shop around and don’t get bamboozled by slick advertisements.