Vehicle Insurance -- Steps That Will Enable You Save Considerably

A cheap rate can be achieved in many ways. But while many of them may reduce your cost, they could leave you with inadequate coverage. However, in this article, I'll take you through a few time-tested steps for paying less while you have sufficient coverage....

1. Folks who because of their scope of understanding buy either collision or comprehensive coverage or both for an old vehicle that isn't classified as a classic are simply paying far more than should. This is because you are paid compensation based on what is known as the Kelly Blue Book value of your car as at when you file a claim. So even if you've paid your premiums faithfully for years but the Kelly Blue Book value shows your vehicle has zero value, you will get nothing from the insurer and they'll be fully protected by the law.

Therefore, do yourself a favor and remove these coverage types from your car insurance policy for all old cars. If you take this step you'll pay a lot less.

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2. Some insurance companies will hand you a discount if a child on your auto insurance policy gets into college and does not use the car within that time frame. If your kid is in college then you should talk to your insurance agent about the possibility of getting this discount. While you're encouraged to make a move, you must also note that this is not one of several traditional discounts that all insurance companies give.

3. A thorough re-assessment of your policy could show you a few points you're losing cold cash. Change is unavoidable and goes on without notice but then we mustn't still be paying for things that such changes have relieved us of. How many people, for instance, remember to drop their daughters from their policies once they get married?

Does it occur to you that you might now be be qualified for certain discounts because of several changes in your personal details? It might also no longer be in your best interest to maintain certain coverage types.

Review your vehicle insurance policy at least once a year. You might spot several points that are no longer needed and save when you drop them.

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4. You'll get lower premiums if you make your payments by Electronic Funds Transfer (EFT). This just means your insurer withdraws your premiums automatically from your account each month without mailing you payment notices. This eliminates administrative costs like those incurred when sending payment notices. Your rate is therefore brought down to reflect the lower cost of providing insurance to you.

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. Most insurers will give you a discount of about 5% if you stay with them for up to five years (some will give you once you stay for up to three.

Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. 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.

Let's assume your auto insurance premium with your present insurer is $2,500 you'll get a discount of about 5% or $125 if you continue for at least 3 years.

But we can almost say with some assurance that because of inflation your rate might not stay the same. But if you are someone who does routine shopping for auto insurance you will very likely get an insurer within those years of waiting who'll give you comparable coverage at a lower rate. Then it would be anything but wisdom to stay put because you want to become eligible for a discount down the road even if the expected discount is less than savings you will get immediately if you switch.

You'll most likely get lower rates if you take the time to shop right since there are hundreds of auto insurance companies around. Since the process of getting and comparing auto insurance quotes takes just minutes, I'll wonder why you will not do that instantly and get lower auto insurance rates straight away.

6. Add-ons like towing raise your premium without giving you as much value as using a towing service. Do you know that your credit card company might have already given you towing as an extra benefit?

Overall, you're better off using a third party towing service than placing it on your auto insurance policy.

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7. The internet makes the cost of doing business low. By extension, insurance providers spend less online and therefore give a massive discount of about 15% for those who buy their policy online.

This makes it obvious that you'll save a lot more if you buy online.

Do your utmost to present your details truthfully. Insurers are mandated by law to cancel any policy once they can prove that the policy holder gave false details.

Furthermore, verify from your state's department of insurance that they you're buying from a reputable company that's licensed to sell this policy.
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