Buying auto insurance is mandatory in most states in the U.S. today so this is an expense that many vehicle owners cannot avoid. However, the amount that each vehicle owners pay out of pocket can vary based on a number of different factors. So, if you are a vehicle owner that does not want to pay the high cost of auto insurance premium coverage, there are some things that you can do.
With that being said, here are 3 things that you can do to lower auto insurance premiums when you are making this kind of investment.
Request Higher Deductibles
Deductibles can be described as the amount that you are expected to pay prior to your insurance policy kicking in. By asking for higher deductibles, insurance policy holders can easily lower their costs substantially. For instance, when you are increasing your deductible from $200 to $500, you reduce the cost that you pay for comprehensive or collision coverage cost by as much as 15 to 30 percent. Also, if you decide to go further than these amounts, you may try to increase the deductible to $1,000. By taking the amount up to $1000, you also can save as much as 40 percent and even more in some cases. However, prior to choosing the higher deductibles, you should make sure that you can pay these amount out of pocket, if or when you have to file a claim.
Don’t forget to Shop Around
It is also important to shop around online or within your local areas if you want to lower your insurance premiums today. So, when the time comes for your auto insurance premium renewal, it is important that you look for the best coverage with the most affordable insurance rates. This is especially true since prices for insurance coverage will often vary from insurance provider to the next. Therefore, one general rule of thumb to follow based on recommendations from professionals in this industry is to obtain at least 3 auto insurance premium price quotes. These quotes can easily be obtained in a number of different ways including calling insurance providers directly or accessing their data on the Internet. Just make sure the coverage and the prices obtained are comparable so that you can get the best deal possible.
In addition to contacting these insurance providers directly for the best auto insurance premium rates, you may also want to take advantage of your state’s insurance department and the information that they house. This is because these departments may provide comparisons of rates charged by the major insurers. The state’s contacts and other information can also be found on their official web page.
Reduce Coverage on Older Cars
When you have an older car, you may not need all of the extra coverages that is normally meant for the newer vehicle models. Instead, you can begin to drop certain types of coverage that you really do not need. In many cases, when people are paying close attention to the date of their cars, they can easily pay hundreds of dollars annually that they can save.