Monday, March 2, 2009

Cheaper Auto Insurance: It Really Is A Possibility

By Chimezirim Odimba

Finding cheaper auto insurance doesn't have to be so difficult, but under the law, all drivers have got to purchase it. Rates that are within your price range are everywhere, if you will just shop around. You may be able to bank 1/4 of the price of your existing insurance coverage.

You can't find cheaper auto insurance by simply asking your best friend what he/she is paying for their policy. A person's individual risk of becoming involved in an automobile accident, what type of car they drive, and factors such as age, driving record, and credit rating are calculated to determine the insurance rates of an individual.

Students that attend full time and maintain better than average grades will also get cheaper auto insurance rates. Insurance companies would like to see accountability, so the more that you can prove, the cheaper your auto insurance will be.

To find reasonably priced auto insurance that meets your requirements, you'll want price quotes from more than a few different companies. There are several companies that are generally known for having cheaper auto quotes. Once you are all set, consider increasing your deductible for an even bigger savings on your premium.

But, it's key to keep in mind that you'll be liable for paying this deductible in event of an accident. It is not a good idea to pick a high deductible if you have no disaster funds set aside.

If you can work it into your budget, paying your car insurance in full instead of making minimum monthly payments is another easy way to save money. To offer cheaper auto insurance, many companies provide a percentage discount to drivers who pay their entire premium with one check. It doesn't hurt to see if this is available with your company.

Finally, if you're worried about the high cost of car insurance, consider purchasing a vehicle that is less expensive to insure. Sports cars and cars that seem to be magnets for thieves are obviously going to cost the most to insure. Choosing a moderately priced vehicle with airbags, anti-lock brakes, and locking steering to prevent theft can result in cheaper auto insurance rates.

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