5 Easy Steps To Lower Your Auto Insurance Quote
It was not too long ago when contracts were made on a
handshake and a promise. Individuals
were not particularly concerned with things like insurance because they relied
upon the goodwill of their neighbor to compensate them for wrongful
damage. For a variety of reasons,
including an increase in the speed and cost of auto wrecks, auto insurance soon
became an important purchase for responsible individuals. Not long after, the federal government
mandated that auto insurance be carried, at least minimally, by all car owners.
The increase in the need for auto insurance over the last 10 years has led to
increases in the complexity of insurance, while at the same time, amplifying
the need to be more cost conscious in auto insurance purchases.
Buying auto insurance today requires as much dexterity as
buying the automobile itself. It is important to know the factors that an auto
insurance company considers when offering quotes. This will allow you, as the
consumer, to know what steps you need to take in order to qualify for a lower
quote. The five easy steps to a lower insurance quote are:
1. Portray
yourself as a ‘safe’ candidate: Insurance companies are interested in managing
risk. Consequently they offer drivers
who are less likely to get into wrecks or at a minimum into wrecks of less
severity, a lower insurance quote.
-Maintain a clean driving record, free of traffic violations
or accident claims.
-Install anti-theft devices in your vehicle.
-Attend a Drivers Safety Training program.
-Buy a ‘safe’ vehicle. The National Highway Traffic Safety
Administration (NHTSA) and The Insurance Institute for Highway Safety together
collect information on safety related aspects of different vehicles. Buy an
automobile that is officially designated as ‘safe’.
-Park your vehicle in a garage.
2. Show
your Credit worthiness: As a risk management entity, insurance companies are
also worried about getting paid on time.
If you can show yourself to be credit worthy, there is less risk of you
not making your payments on time, thus warranting a lower rate.
-Maintain a good credit score and clear up any errors on
your credit.
-Cut down on the total number of outstanding credit cards to
2 or 3.
3. Practice Financial Wisdom: The way in which you structure
and pay for your policy can lower the risk that an insurance company faces with
respect to you as a customer. By taking
steps to lower their risk, you receive a lower insurance quote and policy.
-Buy an annual policy instead of a six monthly coverage to
get you a lower rate that remains the same for a year.
-Opt for automatic payment deductions from your bank account
or your credit card to avoid getting charged for mail payments.
-Increase your deductibles on comprehensive and collision
policies to reduce on the rates.
-Get loyalty discounts by buying your home and auto
insurance from the same company.
4. Assess your Insurance Needs accurately: This is obvious,
the more coverage you get the more it will cost you. Add-ons are killers in the insurance
business, strip your policy down to just the minimum of what you need.
-If your vehicle is not used much or you have an old car
with little market value, opt for minimum liability alone. It will cost you
less.
-After fulfilling the legal mandate on auto insurance,
insure according to your needs alone.
5. Other
wise things that you can do: There are a number of other considerations that go
into your insurance quote. Some of them
are not reasonable steps to take, while others you can do with little effort
which can translate into substantial savings.
-If your car is used only for a particular purpose, make
your agent aware of it, as this will limit the cost.
-Students that make good grades are often eligible for a
discount.
-Give up smoking; it can help you get better quotes.
-Change your occupation if you can help. A delivery boy
carries a higher risk than a storekeeper.
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