Ways To Lower Auto Insurance Rates

18 Mar

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Many car owners are paying too much for their auto insurance. According to Forbes, understanding what determines rates can help car owners shop more effectively. Knowing the factors and considerations companies use to create quotes help anyone find the best deal on their policy.

Good Driving Record

auto insurance

Insurance companies look at the driving records for each prospective policy holder. Anyone with a good record can expect lower rates. Some programs offer additional savings for drivers who maintain their current standards. Incentives include rebates or coupons for popular destinations.

Defensive Driving Class

Take defensive driving classes if you are on older driver. These courses provide details about many situations that occur. Some fees are associated with a majority of companies and groups that offer this service. Topics covered in the classes range from statistics about highway safety to dealing with dangerous weather conditions.

Carpool Or Telecommute

Driving less miles per year can help reduce costs on monthly premiums. Carpooling or telecommuting options are both included in this factor. Make sure that the insurance company is aware of this situation before trying this strategy.

Car Alarms

Any changes to vehicles that increase safety is important when reducing rates. Car alarms are one option in this category. The systems range in price but their costs are offset through insurance savings.

Bundle Insurance Policies

Combining home insurance policies with auto insurance polices can present discounts on monthly rates. This also works for motorcycles as well as boats which require special coverage. Each company presents their own guidelines and regulations concerning these additional selections.

Stop Collision Coverage For Older Vehicles

Older makes and models do not require collision coverage. Their value is often so low that full replacements become less expensive than repairs. People who want to sell a car fast should also remember this issue when adjusting their policies.

Renew Policies Before They Expire

A week to 10 days before expiration is the best time to renew a policy. Many insurance companies will encourage these renewals with incentives including reduced rates or additional coverage. If possible, choose renewal dates that are easy to remember, such as birthdays and holidays. This will prevent any possible losses.

Allow The Insurance Company To Draft Payments Directly From Bank Accounts

Scheduled access to bank accounts shows insurance companies that the policyholder is reliable and the chance of missed payments is greatly reduced. Banks or financial institutions may have their own fees for this type of service.

Pay By Quarters Or Annually

Policyholders who pay by quarters or annually can see discounts on their rates. Monthly payments carry more fees and other considerations that make them more costly for car owners.

Education Discounts

Some companies offer discounts for college students. This special deals lower rates while presenting other options that students may need in their insurance policies. Documentation that proves a car owner is actually enrolled in a college degree program is required by companies.

Image credit: freedigitalphotos.net / Naypong

Source: :http://www.forbes.com/sites/moneywisewomen/2013/01/08/what-really-goes-into-determining-your-insurance-rates/

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