Seven Tips to Help Lower Your Auto Insurance

Auto insurance rates vary significantly amongst insurance companies. Unless you get significant customer loyalty discounts, you can as a rule reduce your premiums by periodically comparing car insurance rates from different insurance companies. Switching insurance companies is easy. Your agent will normally make the switch for you. All you need to do is sign the paper work and pocket the savings. Here are some money saving advice to help you lower your vehicle insurance rates.

Shop rates - Comparing rates is easy with the internet. There are most websites - such as the site mentioned in the footer below - that simplify the process. Be sure you compare the same coverage between each company. Use your current policy deductible and coverage amounts as a baseline for comparison. Compare apples to apples so to speak.

Company due diligence - Once you have at least three price quotes for your baseline coverage, be sure to look carefully at the insurers. Verify the insurance company's financial rating and complaint history. You want a financially strong, customer focused company. Some companies are better at handling accident claims than others. Most states provide insurance company ratings on their websites.

Avoid High Risk Insurers - If you have a good driving record you should try to avoid auto insurance companies and agents that target high-risk drivers. As a rule, their auto insurance rates will be higher.

Consider raising your deductable - Once you select the best company, consider raising your deductible if you have a good driving record. The deductable is the amount you pay before the insurance company will pay. Higher deductibles mean lower premiums because you take on more of the risk.

Find all available discounts - You may be able to lower your premiums if you have recently taken drivers training or have an alarm system in your car. Consider bundling your auto and home insurance under the same insurance company to further lower your combined rates. Student drivers frequently get discounts for maintaining good grades. Low mileage discounts might also be available for you if car pool to work or drive fewer miles per year than most people.

Vehicle adjustments - Your rates are largely determined by your driving record and the type of vehicle you drive. Carriers have complecated methods to assign insurance ratings on vehicles. Premiums are based in part on the car's sticker price, the cost to repair it, its overall safety record and the likelihood of theft. For illustration, if your vehicle model isn't stolen very frequently, your comprehensive premiums may be comparatively lower. Similarly, if repair costs are often high for your vehicle, collision coverage may cost more than average.

Lower Your Coverage on Older Cars - Consider reducing collision and/or comprehensive coverages on older vehicles. Of course this means you carry more of the risk, but it doesn't make much sense to pay $750 more per year for collision insurance on a vehicle that is worth only $3,000.

In most states driving without auto insurance is against the law. If stopped, you may have to pay ticket fees and additional penalties. However, these costs will be insignificant compared to the amount of financial liability you could face if you cause an accident and there are resulting injuries or property damage. Don't risk it; carry car insurance coverage. Use these money saving tips and most importantly, shop your coverage around periodically to help lower your car insurance rates.