There is a very good chance that anyone reading this is paying too much for car insurance. There is an even better chance that they could get a better rate from another insurance company than they could from their existing insurer.
The internet has created increasing competition between car insurance companies. It is easier than ever for consumers to shop for low insurance rates, to analyze coverage and compare premiums. Still, studies have shown that people don't shop around for insurance in the same way they might shop for a new car. Also, people tend to stay with the same car insurance company for years.
Anyone can prove these studies wrong and put the power of the internet to work for them and save money in the process.
Money can be saved on auto insurance in five ways:
- By getting all qualified discounts
- By keeping driver's records clean and up-to-date
- By adjusting coverage to assume more risk
- By driving a "low profile" car equipped with certain money-saving safety features
- By shopping around for a good, low cost insurance provider online
Qualifying Auto Insurance Discounts
The first thing to look at is the discounts that can be obtained. Qualifying discounts fall into a number of categories:
- Low-risk occupations
- Professional organizations
- Combined coverage
- Discounts for safety features
- More risk assumed by driver
- Discounts for senior citizens
Insurance is a numbers game. Companies collect information about what types of people get into accidents. Over the years they see a trend. Drivers that work as engineers tend to get into fewer accidents. Since there is less chance that they will wrap their cars around the trunk of a horse chestnut tree, they charge engineers less for insurance.
However, car insurance discounts can apply to a number of different professional fields, not just engineering. Looking into discounts for teachers, doctors, and other professions is always worth it. Not all car insurance companies are the same and some will offer discounts that others don't.
Affiliation with AAA and certain other professional organizations will lower the consumer rates. Those purchasing insurance should check with their employer to see if there are any group insurance rates, and at the same time ask an insurance company representative when inquiring about the cost of policies.
A big source of savings to consumers is insuring their vehicles with the same company that insures their house. By asking if combined coverage is available, consumers can lower their payments on car insurance and make their homeowner's policy cheaper as well.
A renewal discount is also important to look into. The renewal discount is a discount given to people who have been with the same insurance company for an extended period of time. If a consumer has carried insurance with a company for several years without having one accident, the company will more than likely offer a renewal discount to keep the consumer with them.
Auto Safety Features Can Result in Further Vehicle Insurance Discounts
Auto safety features will also lower payments. Anti-lock brakes is the most money-saving feature available on a car today. Certain states encourage drivers to buy cars with anti-lock brakes by requiring insurers to give discounts. Consumers should check to see if their insurance company gives a discount for this feature. Automatic seat belts and airbags are also frequently rewarded with insurance discounts.
Another way to bring coverage down is to assume a higher risk and redesign your policy by asking for a higher deductible. The deductible is the amount of money paid before the insurance company begins paying the rest. A common deductible amount is $500. Consumers could set their deductible to $1,000, which still covers against heavy losses, but can decrease the monthly premium by as much as 30 percent.
According to Insure.com, the more expensive and higher-performance the car is, the higher the premium will be. This is particularly true of cars that are frequently stolen, or are expensive to repair. The insurance company keeps this in mind when setting its insurance rates for this vehicle. Low-profile cars are the way to go for the highest savings.
Saving money on car insurance doesn't require a lot of know-how or insurance background. Simply by using the web and other tools available to them, consumers can save hundreds of dollars a year. Car insurance is becoming an increasingly dominant entity online, which makes the internet the perfect place for the price-savvy consumer to do their research.
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