Low Cost Auto Insurance – Five Ways to Save

If you are scouring your monthly home budget for more ways to stretch those dollars, don’t neglect your car insurance rates. Many people put off getting new quotes each time their policies come up for renewal, but a little effort might add up to some big savings.

So what are some good ways to save on car insurance?

 

1. You Really SHOULD Shop Around

Most of us know that it’s a good idea to get multiple quotes for things like home repairs or home insurance. Well, it’s a good idea for Auto Insurance as well. Your company may have had the best rates, along with the best coverage, in years past. However,
you may be surprised to learn that things have changed. A smart consumer will always, always compare prices.

2. Do a Policy Audit With Your Agent

You may me eligible for certain discounts and not even know it. You and your auto insurance agent, or customer service representative, should spend some time once a year re-examining your driving habits, insurance needs and potential discounts.

• Are you eligible to take defensive driving classes? Doing this may save 10-20% on the collision portion of the policy.
• Are you eligible for a package discount? Some insurers will give a hefty discount if you insure both your home and auto

• Do You Have Young Drivers? If your teen driver maintains good grades, your insurance company may offer a discounted rate. The savings may be as high as 20% in some cases.

3. Improve Your Credit Report

Yes, that’s right. Your credit report can — and does — affect your insurance rates. Improving your credit scores should help to lower other insurances as well, such as homeowners.

4. Reconsider Your Deductible

If your current deductible is $250, consider bumping up to $500. If the car is quite a bit older, and you are able to accept even more responsibility for minor damage, see if you can go higher than that, up to $1,000. The savings can be quite good.

5. Getting a Different Vehicle?

If you are looking to get a different vehicle, either new or used, take the time to do a bit of research on the make and model before you sign on the dotted line. Cars that are deemed ‘more safe’ are usually less costly to insure. Also, some car and truck models are more prone to theft and vandalism. Keep this in mind and be sure to get a quick car insurance quote before you finalize your purchase.

Young teen drivers are the least experienced drivers on the road. There is a lot to learn about driving and no drivers training school can teach teens about all the situations that will come up in their daily travels. It is only through thousands of hours on the road that you can become a good driver ready to deal with all the challenges you encounter.

Until your teenage driver accumulates those hours and becomes more experienced their insurance rates will be higher than most other drivers.

Teens as a group also get in the most accidents and unfortunately many of those accidents happen to be fatal.

I’m sure statistics can also show that certain nationalities and races are worse drivers — case in point: Asians. And I’m part Asian, so I can make fun of my own people. =)

If insurance companies are always willing to discriminate on the basis of age and sex, why not race or ethnicity?

Did you know that women typically get much better car insurance deals than their male counterparts?  As a matter of fact, women drivers are are considered to be a much lower risk to insure than men.
Initially let’s have a closer look at the next question: why insurance companies consider a lady driver to be better than a male driver? There are three key reasons that the actuarial tables come out in favor of women:

• women on average drive less than men
• when they do drive they take fewer risks
• they tend to obey the speed limits better

It should be also mentioned that accidents caused by women drivers result in less damage and fewer fatalities. Slower speeds has the effect of reducing serious injuries.  And, generally women take less risks then men in their age group – and that is all good as far as the insurer is concerned.

Getting Low Cost Insurance

So how does a woman get the best deal in the case she is in search of car insurance? You should also know that a major factor of any car insurance premium is what automobile you choose to drive. As you can easily understand some cars cost a lot more to insure than others. In other words it simply means that in the case you are in the market for a new vehicle, before you make your final decision  it’s a good idea to check the insurance costs of some of your short-listed models. In addition,  look at the possibility of insuring both your auto and your home policy, with the same company (if they offer this option)  This is recommended because of the fact that there is often a good discount for several policies with the same company.

Are Women Better Drivers than Men?

Statistically, the number of accidents caused by women drivers and male drivers is very similar.  But remember, women don’t tend to cause as much property damage and fatalities, because they are more cautious drivers by nature.  Make sure that  you are the named driver on  the policy – this means that your boyfriend or son can’t drive the vehicle.
The other important thing that should be always considered is that it is recommended to shop around and look at your insurance options. Keep in mind that you can find different insurance companies which specialize in “ladies only” policies and they may be really worth a look. But at the same time you should not think they will provide you with cheaper policy than your existing insurance company that you already deal with. A savvy consumer will always, always get multiple auto insurance quotes.  Ladies, we love to shop, right?  It’s just the smart thing to do.