Car Insurance -- Steps That Will Help You Save Much

There are a number of ways to pay less on your policy. However, a number of them could put you at risk. This is, however, not the case with the tips I'll give you in this article as you'll make huge savings while you maintain enough coverage....

1. You're certainly spending too much if you've got collision and comprehensive coverage for an old car that's not a classic. Your vehicle's Kelly Blue Book value at point of making claims (and not the cost of the vehicle when you bought it) is what shapes what you'll be reimbursed by your insurance provider. So even if you've paid your premiums diligently for several years but the Kelly Blue Book value shows your car is worth nothing, you will get nothing from the insurer and they will be completely protected by the law.

Do the smart thing and drop both of them from your vehicle insurance policy. If you take this step you will make big savings.

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2. Does your child not drive the car for a considerable period? Then you can get a discount for this. If your child is in college then you should discuss with your insurance agent about the possibility of getting this discount. I must point out, though, that a number of insurance providers don't give this.

3. A thorough re-assessment of your car insurance policy could show you a few places you're throwing away hard-earned dollars. It's interesting to note that a lot of people are still paying for things they needed yesterday but no longer make sense now. A good instance is a situation where someone leaves their wedded daughter on their auto insurance policy for months or even a few years simply because they forgot.

In addition, there are discounts you might be entitled to. It might as well no longer be be smart to retain some coverage types.

It would, as a matter of fact, do you a world of good if you revisit your auto insurance policy up to twice yearly. Spotting albeit one thing that should be removed from your auto insurance policy and removing it will help you save.

Cheap Auto Insurance

4. You'll attract cheaper premiums if you pay by Electronic Funds Transfer (EFT). By doing this you authorize your insurance provider to automatically withdraw your premiums from your account at specified intervals. This saves your insurer in many ways such as removing the cost of sending payment notices and the cost associated with processing checks. Your rate is therefore lowered in line with the lower cost of giving you insurance.

5. You'll save by being loyal to an insurer due to the long term discount and accident forgiveness which they give to long-standing policy holders. Some insurers will give you up to 5% in discounts once you've been with them for up to three years while others will give you such a discount only when you've stayed for up to five.

Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. These are all incentives for you to stay with them for as long as possible.

But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.

Assuming your auto insurance premium is $2,500 and you get a 5 percent discount when you stay for up to five years you will pay $2,500 - (5% of $2,500 or $125) = $2,375.

However, bear in mind that your rates may be raised to reflect the effect of inflation. But if you do routine shopping for auto insurance you'll very likely get an insurance carrier within those years of waiting who'll give you comparable coverage at a lower rate. If this is true about you then you know it's ideal for you to go for the more affordable offer right away and not wait for years to become entitled to a discount that won't even save you as much.

You'll most likely pay less if you make out time to shop right since there are hundreds of auto insurance companies around. To be sure you are not loosing better offers, get and compare auto insurance quotes from up to five insurance quotes sites..

6. Your might be paying a lot more than you should because of some really unnecessary add-ons like towing. By the way, your credit card might already offer this as a benefit so check.

Even if this is not the case with your credit card company, you'll still get better service and save more if you exclude towing from your policy and you a dedicated towing company instead.

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7. Running a business through the internet is a lot cheaper than a brick and mortar approach. Compared to buying offline from a brick and mortar business, you'll save up to 15% if you buy your auto insurance policy online.

If you'll save 15% for buying online then it's certainly highly advisable.

While you do this make sure you give correct details. If you try to cheat you'll lose big time on the long run (Your insurer will be covered by the law if they cancel your policy on the grounds that you misrepresented facts).

If you choose to buy online, don't forget to do due diligence: Check with your state's department of insurance to ensure the company you're buying from is licensed to sell auto insurance in your state. Don't also fail to check their rating.