If you are trying to save money on your automobile insurance, there are several factors that can affect the cost of your premium. These include your age, the number of drivers on your policy, your occupation and where you live. Although these are factors you cannot change in order to lower your premiums, there are a number of other ways to reduce the cost of your automobile insurance.
Tip #1: Shop Around
One of the easiest ways to save money on car insurance is to shop around. The price of automobile insurance varies from company to company, so get a minimum of three different quotes before making your decision. However, keep in mind that the lowest price does not always mean the best bargain. When comparing prices, you should look at the cost of the same type and identical amount of coverage.
Tip #2: Increase Deductible
A deductible is typically only applied to the collision and comprehensive coverage on your vehicle; it does not usually apply to liability coverage. Increasing the deductible can dramatically decrease the cost of your premium, however, if you do not have an “emergency” savings account with enough money to cover this out-of-pocket cost, it is best to only increase the deductible by small amounts. For example, if your current deductible is $250, raising it to $500 will save you about 30 percent and still keep the amount you pay reasonable.
Tip #3: Drive the Right Car
The type of car you drive has an influence on the amount you pay for insurance. Vehicles that have a high risk of being stolen, broken into or are more easily damaged in an accident can cost you more on your insurance policy. If you are in the market for a new car or have the ability to change vehicles, keep in mind that cars with added features such as expensive rims or installed DVD players may have a higher insurance rate. Older model cars or cars with high mileage are typically less expensive to insure than a new model. The color of the car can also have an impact on the cost of insurance, for example, red cars are more likely to be pulled over and the more motor vehicle operating tickets you have, the higher your insurance will be. White or blue cars are typically less expensive than those that are red, yellow or other bright colors.
It will be financially beneficial for you to find the least expensive insurance coverage; however, the laws vary from state to state on the amount of coverage required, so make sure to buy the type and amount of vehicle insurance required by your state. Whether you have coverage through a state bond or an insurance company, you have to be able to show proof of the means to cover damages to a person or property from an automobile accident. If you are unable to show proof of financial responsibility, you will be charged with breaking the law, which could result in you losing your driver’s license, having your vehicle impounded and incurring expensive fines.
Andrew Macneil has a solid background in the car insurance industry. He enjoys writing on the subject, sharing his tips and expertise on motoring and insurance blogs. If you need cheaper insurance, click the link to compare rates.