Car Insurance - 6 Fantastic tips to secure low premium rate

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By: Good Nelly
on 8th Jun,2016

But how do you achieve that? Well, one sure shot way to save dollars on your car insurance will be to lower the premium rate.
Car Insurance - 6 Fantastic tips to secure low premium rate

Are you tired of paying huge monthly bills to your car insurer? Do you fear that you won't be able to keep up with your payments in future? If yes, then you need to find out ways to save money on your insurance every month. But how do you achieve that? Well, one sure shot way to save dollars on your car insurance will be to lower the premium rate. Glance through the article to know about 5 secrets to secure a low premium rate on your car insurance.  

Tips to obtain low premium rate on your car insurance

Go through the following lines to know about how to secure low premium rate on your car insurance:

1. Change your car: Usually, the insurers determine the premium rate on the basis of the car model. They check the price of the car, repairing cost, theft rate, accident rate, etc.  This means that the insurance companies will charge higher premium rate on a sports car as the cost of repairing it is quite high. Moreover, there is high chance of it being stolen. The repairing cost will also not come cheap. So, if you have brand new sports car, then you can trade it for an inexpensive one. 

2. Go for higher deductibles: You should always go for a higher deductible if you want to reduce your premium rate. For instance, raising your deductible from $500 to $750 may help you lower the premium rate by as much as 25%. If you raise your deductible to $1000, then insurers may agree to drop the rate by 40%. However, you should make sure you can pay the deductible at the time of making insurance claim.      

3. Maintain a clean credit file: Insurers give a special importance to credit score. If the insurers find that you've a low credit score, then there is a great probability that you'll be charged high premium rate on the car insurance. So, always try to maintain good credit score throughout your life. It will not only help you secure low premium rate but also get a loan at favorable interest rate in future.   

4. Compare the premium rates: Not all the insurers charge same premium rate. It varies from insurer to insurer. So, it is better to check whether or not your insurer is offering you the best rate in the market. You can go to your state insurance department to get acquainted with the standard premium rate charged by the insurers. You can also compare the premium rates charged by the 4 insurance companies. If you find that your insurer is charging a very high premium rate from you, then you should switch your insurer.   

5. Have only one insurer: You can get a huge discount if you purchase all your insurance policies from a single company. Most insurers will offer you good discount if you purchase your home, medical, life insurance, etc. from them. This will help you reduce the overall insurance cost.
6. Know about the discounts: Get to know about the types of discounts available on your car insurance from your insurance agent. For example, you can get discount for being loyal customer of the insurance company. You can also obtain discounts for completing defensive driving course, having good academic record, driving less miles, etc. 

Finally, maintain a good driving record. Avoid getting too many speeding tickets for traffic violations. Drive carefully in the road for avoiding accidents. This is because if you have a very bad driving record, then the insurers will regard you as a risky driver and increase the premium rate instantly.

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