If you a younger driver trying to get auto insurance it can be difficult for you. First of all your income stream may be limited – especially if you are out there pounding the pavement looking for a job , better if you have a job – especially a steady regular job. If you are male auto insurance is traditionally more expensive than for women. It I s no secret that given the driving pattern history of young men. However women are catching up in aggressive driving manners. If you have driving points against you – speeding, traffic infractions etc. If you have a history of vehicle accidents or accidents then this is further bad news. The deck is stacked against you for high car insurance premiums which you may or not be able to afford. What can you do to reduce your auto insurance premiums? Plenty
First of all in this day and age you can shop around. This is no secret. It is even easier today. You can check rates online with a great number of companies.
You can apply online (if you have to you can create fictional names and emails if the online system demands a name and address). Research can be done online on the internet and with a couple of phone calls. It is not as if in the old days when you only could go to your local family insurance agent and no one else.
It is true that there are a number if procedures that you can do to reduce your car insurance premiums. First of all as with most purchases volume is king. If possible see if you can insure more than one car with the same firm. Most insurance companies offer a: multi-vehicle discount”. What that means if you insure your car with another member of your family, you will receive the benefit of a group deal and receive discounts on your premium. This is perfectly legal and is a standard procedure in rate determination in the vehicle insurance industry. Ditto if you carry your other insurance with the same carrier as the car insurance company. If the insurance company, or even the agent, sells home, property or health insurance they may give you a package deal such as you receive from your cell phone, cable or phone company. As well offer to pay the yearly premium in one lump sum up front – in most cases you will be given a discount for that. At the worst your present insurance company may give you an additional discount over what you have now “not to go away”.
Its standard insurance rate practice to increase the premiums paid the higher the insurance deductible. The deductible portion of your insurance is the first part that you will pay yourself when you make an accident or other claim on your insurance policy. For example if you had a $ 200 insurance deductible and had an accident – you would pay the first $ 200 of the claim. If your deductible was $ 500 then the first $ 500 would be yours. It’s a gamble or a judgment call. A lower deductible means much less cost for you on your yearly insurance premium. On the other hand if you are misfortunate to have an accident, that you judged to be at fault – then you will have to come up with more money to pay the larger deductible. It’s your call. A lower deductible will mean less money for your insurance policy. Just make sure that you have access to funds available in case you need them. Otherwise you will have no car to drive.
By actually choosing and then buying an older or a low risk car you can reduce your premium as well. It may not be as sexy to be driving an older car that you might see your grandmother driving but it may be a case of being able to afford and drive that car or having no car. In addition at that point of an older less valuable car you might think of dropping your collision coverage. Again it’s a judgment call. In the same way some cars are rated as “low risk” cars. Some cars are actually rated “high risk” by insurance companies. This can be for any of a number of reasons such as desirability by car thieves for joyrides or parts, ease of theft of the vehicle or cars and SUV’s that are very difficult and / or expensive to fix. Cars rated on a low risk basis will get lower insurance rates. In addition you can do things to reduce the risk for car theft and thus reduce your premiums by installing an auto theft or other deterrent system.
Lastly when driving your car, drive safely. More accidents mean not only insurance deductibles to pay but also increased premiums and surcharges. It never hurts to drive safe, even if it a bit slower and less exciting.
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