How to Get the Best Car Insurance With the Lowest Premium Rates

Insurance is usually an easy place where you can cut your personal budget. Provided you have a contract that meets your needs and a responsive customer service department, the lowest price is always the best deal. The auto insurance market in particular is very competitive. This makes it easier for you to save money on car insurance rates. While finding the cheapest premiums may take a bit of time, the money saved makes it worth the effort.

Before Shopping 

1. Develop a great driving record. Always obey the speed limit and other driving laws. Drive defensively, since even accidents that aren't your fault will count against you when insurance companies determine your rates.

2. Stay on your parents' insurance as long as possible. Your rates will almost definitely go up as soon as you buy your own insurance.

3. Take a defensive-driving course from the American Safety Council or the National Safety Council. These courses are state-specific, and not all insurance companies offer discounts based on them.

4.Maintain a good credit score. Some insurance companies offer discounts based on a good credit score.

While Choosing 

1. Compare prices from different insurance companies. Despite offering essentially the same product, insurance prices can vary widely. Select the least expensive three or four to investigate further.

2. If you have renter's, homeowner's or life insurance, call your current company and ask for auto rates. Some will give you a multiple-policy discount.

3. Call the companies you want to compare. Ask for group rates if you belong to organizations such as AARP, the military or a fraternity. Also ask about any other discounts, such as those for special vehicular safety equipment.

4. Determine final costs after discounts are applied and choose your insurer based on the final price.


Purchase and Maintenance 

1. When you purchase your insurance, choose a high deductible. Put the money you save in a savings account and use it to pay the deductible if you have an accident.

2. Pay as much of your insurance coverage as possible in advance. Monthly rates are more affordable, but they also add significant costs to your overall cost.

3. Always maintain coverage with no lapses. Insurers generally charge more for reinstatement of insurance, and your rates thereafter will be higher.

How to Calculate Car Insurance Rates

Auto insurance is a state-mandated expense that cannot be avoided if you operate a vehicle. The average cost of auto insurance decreased by 2.6 percent in 2007, according to the National Association of Insurance Commissioners. However, in 2010, AAA reported that the cost for insurance on sedans increased by 5.7 percent. Auto insurance companies determine premiums based on the individual risk of the insured, claims and legal fees the company paid out, and the cost of medical insurance included in the policy.

 Instructions

1 .Factor in your driving record and age. Insurers measure your risk based on your driving history. If you have several points on your license from tickets, violations and accidents, then insurance companies will surcharge you. In addition, the older you are, the less your premium will be because insurance companies believe that the longer you have been licensed, the more responsible a driver you are.

2. Total your auto claims. If you have an extensive claims history, then the insurance company will charge you extra. Insurance companies look at your claims history to predict your future claims and penalize you with additional charges if you have filed numerous claims.


3. Calculate discounts on your auto policy. Most carriers offer a variety of discounts as incentives to customers who have a good driving record and who purchase multiple policies with the same company. For example, some companies give the multi-car discount for policy holders who insure more than one car. Others offer the no claims discount for drivers who have no claims or none within a certain time period. Other auto discounts include good student, multi-product, senior and new car discounts. You should check with your insurance agent to determine what specific discounts your carrier offers and how you can qualify.

4. Assess your garaging location. Where you live plays a major role in how much you pay for auto insurance. Insurers review the number of claims that were paid in your area and determine if it is high risk. If there are a large number of thefts and vandalism claims, then you will pay a higher premium.

5. Evaluate your car. Each insurance company has a rating system for different vehicles. Most carriers use the car rating system created by the Insurance Services Office. This system uses a rating scale of one to 27 to evaluate the safety of the vehicle, cost and theft data. The older your car and the less expensive it is to repair, the cheaper your insurance.

6. Consider your vehicle use. Insurance companies base a percentage of your premium on how far you drive daily and if you use your vehicle for commercial purposes such as transporting people or merchandise. Driving more increases your exposure to potential accidents and using your vehicle for business adds more liability risk.

7. Review your insurance score. As of 1995, insurance companies started using credit scores to help determine how much to charge in premiums. Your credit score is then converted to an insurance score. Insurance companies do not disclose their formulas for how they compute your insurance score, however, some have indicated that it’s based on your credit rating and claims history. The better your credit score, the lower your insurance premium.

8. Add the coverage in your policy. Your policy includes liability coverage that consists of bodily injury and property damage. There is also a personal protection section that covers you for medical payments in case you are injured in an auto accident. In addition, coverage to your vehicle includes comprehensive that covers theft and vandalism, and collision. Contact your agent to discuss the specific coverage in your policy.


Tips & Warnings

Selecting higher comprehensive and collision deductibles will lower your premium.

How to Get Cheaper Car Insurance Rates

The cost of life has shot up significantly from late 1990s. This is because economic experts post that the cost of production has continued to go up despite the reality that we are outsourcing many merchandise. Transport industry is actually one sector impacted by the increase of the cost of living..

• The demand for automobiles has paved the way for the steady rise of automobile prices.. For the reason that manufactures realize that they can sell their cars abroad when the home market deflates. It has had a domino effect on other industries that give and support the transportation industry.
• Among the most affected industries is the insurance industry. Through the years, the auto insurance market has enhanced the guideline for purchasing . This is because it isn't economically prudent to keep purchasing costly insurance.
         It's been observed by players in the insurance industry that some individuals over insure their automobiles. In this way, they expense more in their insurance costs. This means that they have excessive costs. However, it is essential for you to understand the basics of auto insurance sector to ensure that you you bought the cheapest car insurance.

 

 1. Understand that the faster your car, the more it will cost to insure it. Buy accordingly. This is because such fast vehicles are prone to get involved in accidents more. The trick is to purchase cars that have good speed but those that do not appeal to top insurance charges. This will make you spend fewer in insurance. The effects is that you might not purchase a sports car, but who needs a sports car?


2. Make sure that your vehicle is secure. Make sure that you set up security alarms and other gadgets that ensure that your vehicle is tough to steal and vandalize. This will greatly decrease your vehicle insurance costs.

3. Get a vehicle that doesn't break down easily. Insurance firms look at price of repairs that a vehicle will need to identify the expense of insuring it.

4. Don't neglect to evaluate the deals of the cheapest auto insurance of reputable firms. Do not forget that insurance policy will only be legitimate and you will also get an auto insurance quote.