Cheap Car Insurance Rate -- Straightforward But Effective Steps

1. For no reason must you allow your auto insurance policy to lapse.. Folks who allow this to befall them attract only more expensive rates for a long time. This happens to some folks while they are changing over to another insurance company.

One way to ensure you do NOT make this type of mistake is to let your old policy keep running until you've confirmed that the new policy is fully in place. Many people are paying higher rates than they would otherwise just because of this mistake. Therefore, make sure you don't become one of them.

2. You will pay lower rates if you elect to pay your premiums annually and not monthly. True, monthly payments might be convenient but they are also less affordable.

Every check that is processed attracts a fee. While a yearly payment requires a single check and therefore one transaction every year, monthly payments attrract twelve. you will then have to pay the sum of 12 transaction charges..

Apart from this there are also administrative costs that come with the monthly payment option. A good example of such is the expense associated with mailing payment notices..

These costs plus a profit margin for this feature is included in your premium making it more than a comparable profile that pays annually every year.

3. Electronic Funds Transfer (abbreviated as EFT) is a painless way to reduce your automobile insurance premium. This process authorizes your bank to credit your insurer with your premiums without any intervention from you until you stipulate otherwise. This reduces administrative overheads like those incurred when sending payment notices. An insurance company gives you part of what they save by offering you a lower rates.

4. Visit a minimum of five quotes sites. Visiting not less than five quotes sites raise the chances that you'd receive better auto insurance quotes. This is because insurers not covered by one site will be covered by the other.

Moreover, you should understand that since your chances of receiving lower auto insurance quotes is proportional the number of quotes you get, the more companies you get quotes from, the better your chances will be.

Obtaining your auto insurance quotes online will help you save far more if you invest only 25 minutes to obtain quotes from a minimum of 5 insurance quotes sites.