Strategies to reduce auto insurance premium and fatten up your wallet

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By: Good Nelly
on 2nd Sep,2014

Many families are searching ways for a money makeover nowadays.
Strategies to reduce auto insurance premium and fatten up your wallet


Many families are searching ways for a money makeover nowadays. They're giving serious concern to their auto insurance premium in order to cut costs and risks. This is well known to all that auto insurance companies charge different premium rates on basis of their own policy. So when it comes to shopping for a insurance policy for your new car, it becomes hard to understand which one is offering the best price. The good thing is that it is possible for you to get cheap auto insurance rates with some strategies.

Lowering auto insurance premium

There are various ways to lower your auto insurance rates which are given below.

Ask for a rate quote before buying

Always ask the insurance agent about the total insurance cost before buying a new car. Premiums can be found different in each year and it can also vary on the basis of model or its features. Moreover, premium rate may vary from company to company. So, try to get quote from more than one company before buying a new car. J. Robert Hunter, director of insurance (with Consumer Federation of America), a national watchdog group, said "Company prices are very different, and it pays to shop around. You can easily wind up paying double from one company to the next"

Request for higher deductibles

One of the most known ways to try and lower the insurance premium is raising the deductibles. So, if you would like to lower the rate of premium for your auto insurance, try to increase the deductibles. It is always important to keep in mind that you should avoid carrying deductible that amounts to more than what you can actually pay.

Keep your driving records clean

Another great option to get cheap auto insurance policy is to keep your driving records clean. The better your driving records, the lower will be the premium amount. This is because insurance companies believe that less traffic tickets and low accident records indicate that you are a good driver. This will mean that you are going to make minimum claims. Thus, the premiums rate will be low.

Go for the right type of automobile

Some automobiles cost you more and thus the insurance cost on that is going to be high. So, you will have to plan even before you buy an automobile. For example, in case of a car, if you buy a sports car, there are high chances of theft for it. Thus, it is quite obvious that there are high chances of you making a large claim against the car if any such theft occurs. This increases the premium rate automatically.

Talk to employer about company perks

You can also talk to your employer about the perks that they offer as a company for the auto insurance. There are many companies that offer such discounts and you need to be aware if your company too allows any such discounts.

Buy safe and stay safe

Try to buy a safe car having modern features such as air bags, anti-lock brakes, electronic stability control and automatic seat belts. Thus you can minimize the chances of damage in an accident and get extra discount as well.

Ask your agent for discount

You can talk to the insurance company with whom you are planning to buy your auto insurance policy. You can ask them if there are any such programs or options through which you can get the cost of your auto insurance lowered.

Beware of car theft

Find out if your car can get theft-deterrent discount or not. Install anti theft devices such as car alarms and lojacks to lower the risk and the premium as well. Ask the insurer on which device you can get discount.

Some quick tips to reduce auto insurance premiums

  1. Buy all your policies (auto, rental, home) from one insurance company. Thus you can get multi-line discount.
  2. Avoid rush drive and risk zone to get a better insurance premium.
  3. Ask for teen driver discount if your teen is brilliant with his/her studies.
  4. Keep a good credit score.
  5. Ask your agent for low mileage discount.
  6. Park your car inside garage instead of in street or driveway.

Lastly, buying a new car is more of an extra expenditure and the rates of auto insurance policies can be high. On the other hand, it is important for you to buy an automobile insurance policy as well. So, start thinking about the possibilities to get auto insurance policies at low rates. Do home work (check online, ask relatives) and compare amongst different auto insurance quotes that are available in the market.

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