Ways to Save on Your Auto Insurance Policy
One of the largest costs associated with driving can be auto insurance. As such, when looking to save money when it comes to your car, put some focus on your auto insurance plan.
With an average annual cost pegged at $829 for 2005 for auto coverage you can find opportunities to bring this amount down. When looking to reduce your auto insurance premiums you should develop a checklist of items to pursue. These items should include raising your deductible, working with an agent before buying a vehicle, getting multiple quotes, and shopping early.
Raise Your Car Insurance Deductible
Raising your deductible is the quickest and easiest way to reduce your auto insurance premiums. You can also get the biggest savings from this approach with savings of anywhere from 10% to 40% depending on how much you are increasing your deductible by. The most important consideration you need to make when increasing your deductible is that you have enough money available to cover the deductible should you be required to make a claim.
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Work with Your Agent to Choose the Right Vehicle
If you are in the market for a new vehicle then you can save significantly on insurance by working with your agent prior to buying a vehicle. One of the biggest variables in auto insurance is the type of automobile you drive. The premiums you will pay for a given model are impacted by the prevalence for that type of vehicle to be involved in a collision, the rate at which the vehicle is stolen, and the cost of repair if the vehicle is in a collision. As such when you work with your agent you can get a sense of the affordability of insurance on the various models you are considering.
Start Early and Compare Auto Insurance Rates
Finally, when shopping for auto insurance you should look to get multiple quotes and shop early. You will often get two very different quotes from two different insurance companies. This is because each insurance provider is willing to take on a different risk profile, which is reflected in the premiums you will be charged from a given provider. When getting quotes you should also start well ahead of the expiry on your current policy. This will entitle you to an early shop discount that can be as high as 12%.
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Source
Insurance Research Council. <http://www.ircweb.org/news/20060628.pdf>