Auto insurance tips for saving money on premium rates
The auto insurance industry works by estimating the risk you will be involved in an accident. So everything you do to convince insurers you are a safe driver will save you money. The first step is shopping around. Although companies agree on the general principles, there are always differences in the way those principles are applied. You often find quite big differences between the companies when they quote rates. That means getting as many quotes as possible to see what the market currently offers.Let’s start with the make and model. The actuaries who do the risk calculation have all the statistics from all the accidents over the last fifty years. In combination with the government department that does crash tests, they know which makes and models have the safest records. If you choose a vehicle fitted with all the latest safety devices and good anti-theft systems, you will pay a lower rate. But if you choose a vehicle that performs badly in crash tests, has none of the standard safety features fitting and is expensive to repair, the rate will be high. Before you buy or rent, always find out how much it will cost you to insure your possible choices.
Now look at your own driving profile, there’s nothing you can do about the basics of who you are and where you live, but if you are inexperienced, you will usually earn a discount if you go through an approved safety course. The same applies to older drivers. Defensive driving courses help reduce the risk of accidents even when your reflexes are slowing down and your eyesight is not as good as it was. You should also check your credit records. Even though your credit score is not directly relevant to the premium rate, insurers do take a low score into account. You have a right to a free copy of your financial history and a right to have mistakes corrected. If this improves your score, your rate will come down.
Agreeing to buy both your home and auto insurance cover from the same company will usually save at least 10% and there are good savings with the new pay-as-you-drive policies if you are a low-mileage driver. Finally consider whether you want to risk agreeing to a higher deductible. Ask yourself whether you can afford the cash should there be an accident.
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