Auto insurance is a must if you want to drive. But, don't assume that costs of auto insurance are standardized. You would be surprised at how car insurance rates can vary greatly. Never just go with the first agent you speak with. You must shop around for your car insurance. Here's how to get secret discounts you won't see on TV , and no auto insurance company will tell you about.
Now, thanks to the internet, you can shop around right from the comfort of home. Go ahead and get at least three price quotes from different kinds of auto insurance companies. It costs nothing and you'll understand your options better.If you’re planning to buy a new car, call before your purchase, to see how much it will cost to insure in the first place. Check if a car alarm and other anti-theft devices can lower your auto insurance costs.
Always ask about auto insurance discounts. You have to ask, because in many cases if you don't ask, large discounts that you are entitled to, may not be offered. It's just the way it works. Auto insurance companies expect you to ask.
OK, Here are some important concepts. What’s your cost if you have a $500 deductible? (Increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by as much as 30 percent.)
What about a $1,000 deductible? Going to a $1,000 deductible can save you 40 percent or more. (Obviously, only if you can afford it)
If your car is worth less than 10 times the annual insurance premium, purchasing extra coverage may not be worth it. That’s one advantage about owning an old car.
Some companies offer reduced rates to drivers who get insurance through a group plan from their employers and other professional groups. It can’t hurt to ask.
Here are typical reasons that auto insurance companies agree to discounts:
You have an excellent credit rating. Bills are always paid on time.
More than one car is insured with the auto insurance company.
No accidents in more than three years.
No traffic tickets in three years.
A driver’s training course was taken.
Car has an anti-theft device.
Minimal mileage on car in a year’s time.
You carpool.
Car has air bags.
Car is quipped with anti-lock brakes.
You have daytime running lights.
You are a student driver with good grades.
Both auto and home coverage with the company may qualify for a discount.
You are a long time customer.
Your whole family uses the auto insurance company.
Not every company will offer the same discounts. Compare the final prices the various companies offer you. It pays to shop around for your car insurance.