Lower Your Automobile Insurance Rates

In earlier times contracts were just made on a simple agreement with a handshake and a promise. During that time individuals never considered such things like insurance and they only relied upon the good will of their neighbor to compensate for whatever damages they have caused. Today car insurance is becoming an important purchase for responsible individuals and this is caused by several factors including an increase in the speed and cost of automobile accidents. As a response, the federal government mandated that automobile insurance must be carried by all car owners at a minimum rate. The increase in demand for auto insurance for the past years has evolved the insurance system into complex insurance types and later more and more people are more cost conscious when purchasing automobile insurance. Insuring your car today can significantly increase your overall cost of automobile ownership. Before buying any car insurance it is vital to know the factors that most automobile insurance companies consider when offering quotes. Knowing these factors will help you as a consumer to know the proper steps you need to take to qualify for a lower automobile insurance rate. Always show yourself as a safe driver: Most insurance companies prefer on giving lower rates for safe drivers. They are more interested on drivers who are less likely to get into accidents, wrecks or at a minimum into wrecks of less severity and they would likely offer you a lower insurance quotes.
  • Always maintain a clean driving record, no traffic violations or accident claims.
  • Your vehicle should have anti-theft devices.
  • Attend a Safe Driver Training program.
  • Purchase a car with a high safety rating.
The National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety together gather information on safety related performance of various vehicles. Purchase an automobile that is officially designated as "safe".
  • Always park your vehicle on a safe place or in the garage.
You must have a good credit history: Paying bills on time is also one of the important considerations that most insurance companies are taking. Showing yourself as credit worthy will help you get a lower rate of car insurance because there is less risk for them that you cannot pay on time.
  • Maintain your good credit score and clear all your payment records of blemishes.
  • Cut down on the total number of active credit cards to 2 or 3.
Always portray a good financial wisdom: How you choose your insurance policy structure and how you are paying your policy can help you get lower insurance quotes because they have less risk to face with you as a customer. Following the steps to lower their risk will give you in return a lower insurance cost and policy.
  • You can purchase annual policies rather than six months coverage to get a lower rate that remains the same annually.
  • You can set up an automatic payment deduction from your bank account or credit card to save the cost of mailing payments.
  • Increase your deductibles on comprehensive and collision policies to reduce the rates.
  • Buying your other insurance like home insurance from the same company will get you a loyalty discount and this will help you get lower car insurance rates.
Make an assessment of your insurance needs and avail only those important to you: Of course, the more coverage you avail the more it will cost you. So avoid additional insurance coverage and only get that insurance coverage that is fits your needs.
  • Having a vehicle that is not used much or having an old car will decrease your insurance cost because automobile insurance is dependent on the market value of the vehicle. So having a lower market value automobile will cost you less insurance.
  • Having fulfilled the legal mandate of the federal government, insure your car for a coverage that you only need.
Other better ways to do: There are other considerations for getting a lower auto insurance cost. Most of the steps are reasonable while others need a lot of work to get savings from it.
  • Inform your agent about the particular purpose of your car to get a discount for your insurance.
  • If you are a student your good grades will help you get a discount for your car insurance.
  • Being smoke free can impact your insurance rates.
  • Changing you occupation will help you get a discount. Choose a less risky occupation.

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