One of the many responsibilities associated with driving is the ability to pay for damages in the unfortunate event of an accident. Many drivers are not aware that they can reduce the amount they pay for general auto insurance significantly without sacrificing the amount of coverage they receive.
The following guidelines are guidelines only. There is no guarantee that your car insurance provider will apply in every scenario mentioned below. The best idea would be to take notes on areas where you believe you would be able to generate some savings and shop around. Force the insurance companies to compete with each other.
Type of Car That You Drive
This should be common sense, but the type of car that you purchase will directly have an effect on how much you pay general auto insurance. In some US States, your insurance company will reduce your premiums if your car boasts certain safety features such as anti-lock brakes, anti-theft devices, and so on. If you are purchasing an automobile in the near future, make a list of five or six vehicles that you are thinking of purchasing. Call your insurance company and ask them what rate you would for every vehicle.
According to the National Insurance Crime Bureau, the ten most stolen cars in 2008 were;
• Honda Civic (1995)
• Honda Accord (1991)
• Toyota Camry (1989)
• Ford F-150 (1997)
• Chevrolet C/K 1500 (1994)
• Acura Integra (1994)
• Dodge Ram Pickup (2004)
• Nissan Sentra (1994)
• Toyota Pickup (1988)
• Toyota Corolla (2007)
Avoid add-ons such as spoilers, new rims, etc. If they do happen to get damaged, your insurance company will never valuate them for as much as you paid for them. Additional custom add-ons also make your car have a higher profile, which in turn makes it more likely to be stolen.
Insuring Older Cars
If you are driving an older vehicle that is worth less than a few thousand dollars, in may not be necessary to fully insure this vehicle. Of course, make sure that you have the minimum coverage required by law, but the cost of insuring a vehicle should not be more than it is actually worth.
If you do get into a small fender bender with a new, or an old vehicle, try to avoid filing a claim. If at all possible, pay the damages out of your pocket because the more claims that you file, the more your premium will increase.
What to Tell Your Insurance Provider
The insurance company that insures your home may also offer general auto insurance. Depending on the insurance company, you may be eligible for a discount for buying two forms of insurance from the same company.
Ask your insurance company if they offer any discounts through your employer. It is possible that if you work for a big company, you may be eligible for an insurance discount. Finally, ask if you qualify for a low-mileage discount. If you are not a driver that drives often, the insurance companies will understand that there is less of a risk that you will be in an accident, therefore lowering your premiums.
What Your Insurance Provider Will Not Tell You
1. Your chosen profession may be affecting your rates. Believe it or not, but your job may be affecting your rates. If you are earning a large salary, your premium may be lower because the insurance company knows that those who make more money file fewer claims than those who make less money.
2. Pay your insurance in semi-annual or annual installments vs monthly installments. Every time that you submit a payment to your insurance company, there is an administrative fee to process your payment. By paying in semi-annual or annual installments, you negate many of these monthly administrative expenses. This strategy requires financial discipline.
3. Increase your deductible. By increasing the amount that you pay before your insurance company chips in to lend you a hand will significantly reduce your premium and will not affect your coverage in case of a serious accident.
4. Defensive Driving School. In some States, you may be eligible for a general auto insurance discount if you complete a defensive driving school course. These courses can be taken in the comfort of your home over the internet. Before enrolling, make sure that your insurer provides discounts for such courses. In some States, the discount can be as much as 10%.
Hopefully, there was information in this article that will allow you to stay on the road and keep some money in your pocket. Remember, driving is a privilege and not a right.
By: Kris Kolanko
About the Author:
My name is Kris Kolanko. I am co-owner and operator of the site Wannadrive. Our goal is to provide new and current drivers with information and defensive driving school that will help them obtain a license or find a driving school, anywhere in the United States. Feel free to explore our site and take advantage of all we have to offer.
