Auto Insurance Rates -- To Save Massively, Apply These

We all will be glad to get a very low rate that comes with the right coverage. But how can this be achieved? Here are steps that will help you get reasonable discounts with ease...

1. The difference in the cost of insuring comparably priced vehicles could be very huge. It will do you a world of good if you ask your agent before buying your next car. Two factors that will force you to pay more are a car's crash rating and theft rate.

In addition, it will also take much more to insure a car that costs a lot to repair or maintain. Asking the right questions will make it easy for you to avoid expensive-to-insure cars and get lower rates.

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2. It will cost you much more to buy insurance for a car if it has a poor safety rating. Safety ratings should be given top consideration when buying a new car. Such features attract a reasonable discount.

3. It's a known fact that young drivers attract high rates. Worse still, if they are teenagers their auto insurance rates could be really high.

This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. You'll be made to pay very high rates if you do otherwise. Sign an exclusion form that will allow your teen driver have his or her own policy.

It's a fair price for them to pay to enjoy the adult privilege of driving. This act will save you more than money as your teen driver will happily listen when suggestions are made on things that will bring down the high rates they pay. The full implication of this is that your teen will be a lot safer as they'd do their best to avoid inflating their rates.

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4. 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.

Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. These are all incentives for you to stay with them for as long as possible. The longer you stay, the more you'll save.

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.

If your auto insurance premium is $2,500 and you get a five percent discount when you stay for up to five years you'll pay $2,500 - (5% of $2,500 or $125) = $2,375.

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

And, in most cases, most people can easily pay cheaper rates than they are currentl on auto insurance if they do thorough shopping.. You can only know if it is true for your profile after you get and evaluate quotes from a good number of auto insurance companies to see where you'll gain more..

5. Participate in a defensive driving class. In addition to the fact that they will help lower your rate, they will make you a safer driver.

6. Before you get carried away with the few hundreds you will save on a house, check if it will not cost you much more in auto insurance. Do you know also know that homes within the same neighbor might actually fall into different risk zones according to the insurance industry's mapping?

So, as part of your home shopping activities, check how this neighborhood will affect your auto insurance rate. I know: That isn't usually an issue when you're looking for a home but it's really important.

But think about it: If your new zip code adds up to $300 to your annual auto insurance rate, how much would that amount to at the end of your 30-year mortgage?

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7. As an under 25, you can pay lower car insurance rates if you use your parents' policy. If you are of driving age, then your parents certainly are far above twenty five years which means they are lower risk drivers.

To take advantage of this though, you'll have to live with your parents and also have the car registered in their name. If you want to be the owner of your car, then be the big boy or girl and also own the costly rates. Sorry, you cannot have both with this option. However, you can still make huge savings by clicking the link at the end of this piece.

8. You can reduce your auto insurance premium by obtaining and comparing quotes from at least five reputable quotes sites.

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