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.

3 Warnings Before Switching Auto Insurance Companies

We have all been bombarded with ads, email ads, and billboards that say how much we can save our auto insurance by switching to another company. This is a competitive industry. Just because another company offering a better rate does not mean you have to rush to call and cancel insurance and switches. There are a few things you need to make sure before you do it.

Here are a few things to note before you switch Your automobile insurance to another company.

If you have been with one company for many years and they offer credit that wipes out your first crash, you may want to live or see if other companies can match. Sometimes this is referred to as a good driver discounts or discount longevity or accident forgiveness. The company rewards you for your loyalty with freeing your first accident.

This discount can be quite significant. Because most accidents can increase Your rate to 40% over the past 3 years the potential savings could be a few hundred dollars for a period of 3 years. But when you switch companies, you lose this credit You have built. If you have an accident with the new company how much you'll regret don't have the remission of an accident by looking at your level up to 40%?

Another thing to think about is to make sure you switch to the company does not offer You just a teaser rate for the first 6 months to get your business and then meet you for 6 months and then once they've got you on their books. Because auto insurance is a lucrative industry, the company is able to offer a level of low ball to get you to switch and then once they've got you raise Your rates on renewal. If the new company price level seems too goo actually do more research. Check out the insurance forums or search Google for "XYZ insurance + reviews."

Watch out for extra charges. This is one that may surprise you. Some companies charge you to make a monthly payment-usually $ 3-$ 5 per month. For a year, that comes out to $ 36-$ 60. That one can take a bite out of your savings potential is big so make sure you factor in the level you're comparing. Make sure you really save money when you switch.

Two things to keep in mind when shopping around for auto insurance is a new company website and hours of operation. Make sure the hours they work with your watch. If they are only open from 8-5 and you work 8-5, when are you going to be able to call them if you have any questions or need to make a claim? If you do all your online business You want to make sure that the company you are looking at has a capable website can help you 24 hours a day.

You can save money with your car insurance shopping around. Just be sure to keep in mind the things that I have mentioned to make sure that the agreement you see is really great.