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Sunday 20 January 2013

12 special tips to lower your auto insurance rates


Getting an insurance policy is thoroughly recommended for anyone who has got a car. It would be naïve of you to fret over the small premiums, since the benefits in the long run are too enticing to ignore. But before purchasing the policy, make sure to pay heed to these 12 special tips:

 i.             Few hours of searching: Sit before the computer when you have a few hours at hand. Then do intense searching and find out the best dealers, agents and companies offering auto insurance. This intense amount of research will easily help you get a greater knowledge of the quotes being offered by different individuals.

ii.                  Bundling: One most simple way of getting better bargains is to bundle your policies i.e. buy multiple policies. For instance, you can club your car insurance with a life insurance policy to get higher discounts.

iii.                Special privilege: Some organizations offer special privileges to people who are seniors or a member of some unions or alumni. Even students are offered low rates in a number of cases.

iv.                Payment mode: Some people prefer annual payment mode over the monthly ones. The former cuts down some clerical expenses for the insurer and thereby bring down the cost of the policy.

v.                Reviewing: Experts also advise that people should review their auto insurance on a yearly basis. This can prove to be beneficial in certain situations.

vi.          Higher deductible: A higher deductible would lower your premium cost. But this comes with additional burden on your pockets in case of an accident. Hence, it is recommended only if you are confident of your driving skills and are in a decent financial position.

vii.            Driving record: Your driving record also plays a role in deciding your insurance costs. If you have been involved in less number of accidents, then the insurer would have greater confidence on your driving skills and charge you lesser.
viii.            Getting the right coverage: Choose your coverage after proper deliberation. If the car is new and expensive, then you should go for higher coverage. On the other hand, if the car is old or cheap, then you can save on your expenses by taking just the basic coverage. 

ix.         Age factor: Age is a factor which plays a role in life insurance as well as in your automobile insurance. While in the former, the premium goes up with advancing age, in the latter it goes down with experience & seniority.

x.                 Making use of dashboard camera: If you can fit a dashboard camera in your vehicle, it can help you provide evidence of your competence as a driver lest you are accused of reckless driving.

xi.       Choose the car carefully: While buying the car, do your homework well. Some cars are less road-friendly and therefore more susceptible to accidents. Some expensive models also have higher theft records against them. These cars will, in all likelihood, raise your premium costs.

xii.            Install winter tires: Winter tires are considered safer and friendlier. By getting them installed, you can instill greater confidence in the mind of the insurer and avail cheaper auto insurance.

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