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How to Get the Best Auto Insurance Rates
Since acquiring Auto Insurance is an essential part of being a driver, the ultimate task of many drivers is to get the best Auto Insurance rate. The best rate typically means low rate. Whether you have purchased your first car or your current Auto Insurance carrier raised premiums, you can always undertake certain steps to find the most favorable Car Insurance rate that you can qualify for. However, low price should not mean insufficient coverage. It is important to make sure that you get the coverage you need for a fair rate.
Some people purchase a new car, pay for full coverage and keep on paying the same high rate carrying full coverage on their older car. The fact is that their ten year old vehicle may be worth less than $1000. However they still continue to pay $500-to-$900 dollars a year in order to keep full coverage on their vehicle. It is important to understand that in case they have an accident, the insurance company will only pay them the wholesale value of their car, i.e. they would receive $1000 or less. If your annual premium for your collision and comprehensive insurance exceeds 10 percent of your vehicle’s value, consider dropping some coverage.
Auto Insurance rates tend to change from year to year, and the rate which looks quite favorable now may not remain as low next year. Therefore, it makes sense to shop around on a yearly basis. Comparison shopping is the key to lower Auto Insurance rates. You are recommended to compare the rates of various available insurance companies in your state.
The quickest way to find the best Car Insurance rates is to go around several companies asking for their rates. Don’t accept the first quote you receive. Insurance quotes do vary from company to company.Your agent is likely to give you a discount in some services in order to win you over into signing with them. Also, there are discounts for various ages, cars and their safety systems. Alarm systems, anti-lock brakes, anti-theft devices and air bags can help lower your premiums. Even where you park at night will help to lower the amount of your Auto Insurance.
Consider combining your Car Insurance with other insurance to get additional savings. For example, it is a good idea to have your Homeowners and Car Insurance with the same lender. It will always guarantee you a discount. Almost all insurance companies offer a multi-car discount.
Search for free quotes for your Car Insurance online. There are a lot of sites where you can get Auto Insurance rates from A-rated companies. Get ready to answer a series of questions, which will help to tailor the quotes to your particular situation. Then contact your local Car Insurance company and compare their rates to the quotes you’ve got online. You will get a better deal by getting quotes from as many companies as possible.
Take into account the recommendations of your family and friends. Their positive or negative experience with insurance companies may help you make a decision. Ask them about the quality of customer service of the company they dealt with and make it a point to figure out everything possible about the situations when the company settled a claim.
One more effective method of saving is changing your deductible. For example, if you raise your deductible on your collision insurance from a $50 deductible to a $500 or even $1000 deductible, you will save a lot on your annual premiums payment. In other words, a couple of hundred dollars will certainly save you hundreds of dollars a year on your insurance premium.
When purchasing a new car, figure out what category it falls into. Insurance companies practice dividing cars into a series of categories, and the higher the category your car is in, the higher your premium will be.
Another way to reduce your payment is to keep a clean driving record and build up your no claims bonus. A safe driving record will make you eligible for a lower premium. If you have a clean driving record, you could see a reduction on the amount you pay for your premium by as much as 75 percent.
Certain age groups qualify for lower rates: individuals over 25 years old, people with respectable jobs and careers, especially men who are married and have kids, students performing to high standards in school etc. All these people are considered safer drivers.
Rural drivers tend to have fewer accidents as they mostly drive in low risk country areas. Compared to drivers who use their car during rush hours in highly populated areas, rural drivers’ insurance rates are considerably lower.
Paying your premium annually instead of monthly, removing unnecessary drivers from your policy and reducing your annual mileage are some of the ways drivers may use to lower their premiums too. Trying to find the lowest rate possible, don’t forget that the best deal is not always just about the lowest price. It is about the best price for the policy which is most suitable for your needs.