Tips For Buying Auto Insurance

It's as important to put as much thought and planning into purchasing car insurance as you do when shopping for a car. This is because the money you spend on car insurance is part of your overall automobile budget, and by following a few simple tips, you can reduce that part of it almost immediately.

Discounts, Discounts, and more Discounts

Ask every car insurance company which, if any, discounts they offer. There are typically three types of car insurance discounts: driver-related discounts, vehicle related discounts, and discounts based on carrying multiple policies, such as home and car insurance, as well as insuring more than one car. There are also discounts based on your driving record, your occupation, and level of education. Be sure to thoroughly examine this area, because not all insurance companies will proactively offer discounts.

We tend to think of car insurance in terms of either liability or full coverage, yet there is a range of coverage from which to choose: comprehensive, collision, uninsured motorist, personal injury protection, etc. Look at each one of these as a policy all its own and decide how much coverage, if any, you need. In addition, when looking at the various discounts for which you may qualify, don't assume the discount will pertain to the entire policy. Not all of them do. Some discounts are offered only on certain portions of the policy; however, such a discount could make the difference between affording that particular coverage and rejecting it altogether.

Safety First

Safe driving, as well as driving a vehicle with a high safety rating, will reward you with lower insurance premiums. When you are in the market for a new or used vehicle, find out the safety rating of any you are seriously considering purchasing. Many of us will purchase a vehicle known to get good gas mileage, yet how often do we check out the vehicle safety rating?

Cars that come with factory-installed safety features, such as anti-lock brakes, airbags, and automatic seat belts often qualify for safety discounts. In addition, the cleaner your driving record, the lower insurance premiums will be. If you do get a ticket, explore the options for having it removed from your driving record, such as taking a defensive driving course.

Don't let your car insurance lapse if at all possible. Just going a couple of months without insurance can mean the difference in qualifying for discounts and lower premiums and paying a much higher base rate. In fact, staying with one insurance company will go a long way toward lowering your premiums, as many of them offer renewal discounts and lower premiums for loyal customers. Just make sure you have chosen your insurance company carefully before you decide to be a long-term loyal customer.

Enough is Enough

Don't over-insure if you're driving a low value car. Since the value of your car is likely to be a determining factor in the settlement of your claim, over-insuring a car with little value may cost you in the long run. You should, of course, keep at least the level of insurance required by the state in which you live. Just getting one ticket for not having insurance can eat up a year's worth of savings, not to mention the other obvious
ramifications.

Consider raising your deductible or choosing a higher one at the outset to save on your car insurance premiums. It will cost you more when you file a claim, but consider how many people go for 3 years or more without filing a claim. Beware of companies who advertise coverage for high-risk drivers if you have a good driving record, because their premiums tend to be higher overall. On the other hand, if you are in the high-risk category, still shop around for the best rates, as it is a highly competitive field.

Keep Your Records in Check

Whether you're trying to get a ticket off your driving record, or trying to proactively lower your insurance premiums, taking a defensive driving course is a good idea. Some insurance companies offer discounts for those who voluntarily take the course, and for those who want to have the ticket removed from their record, that's going to translate into lower insurance premiums down the road. Everyone should get a copy of their driving record periodically to check for errors. Otherwise, you could be paying higher insurance premiums because of a clerical error you don't even know about.

In the same way, you should obtain a copy of your credit report at least once a year. You may not realize how important your credit score is because you're not actually obtaining credit, but it has a bearing on the amount you'll pay for car insurance. Bad credit or errors on your credit report can cost you a significant amount on your insurance premiums.

Opt for a yearly policy instead of a six-month policy. It may not be any cheaper up front, but at least it will be a full year before the premiums can increase.

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