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How To Find Cheap Auto Insurance |
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If you own a car and drive it, having insurance is not really an option. In most states, you are required by law to
have at least a minimum amount of liability coverage. There are things you can do, however, to cut your auto insurance costs.
Some of these ideas may work for you and some not, depending on your circumstances.
- Shop Around. This is the #1 way to save money. A good time to comparison shop is when
your current policy is about to be up for renewal, especially if you find that your premium has gone up.
You could save several hundred dollars a year for the exact same coverage on the same car.
- Good-Student Discount. Students with GPAs of 3.0 or higher can be eligible for discounts of as much as 25%.
- Group Discounts. See if your employeer, military groups, or other professional associations offer discounts.
- Drop Some Coverage. If your car is worth less than 10 times the amount you'd pay for coverage, you may want to
consider dropping collision and comprehensive coverage altogether. They can account for 40% or more of the cost of your premium,
and covers only the car's replacement value. If any claim payment you'd receive wouldn't substantially exceed your premiums minus
the deductible, then it's probably not worth it to get the insurance.
- Combination Discounts. You can often knock off 10% to 20% from your premiums if you insure both your
home and your car with the same company, or by insuring more than one car with the same company.
- Keep an eye on your credit report. Your credit history is an important factor for most auto insurance companies.
Many studies have shown a relationship between your credit history and the risk to an insurance company.
Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.
- Install a car alarm. You might get a discount if your car has anti-lock brakes, automatic seat belts, airbags, or
anti-theft devices such as car alarms. They reduce the chances of your car being stolen or vandalized.
- Increase your deductible. This can be a good way to cut the cost of the policy. You may be able to cut your annual premium
by 10 percent or more if you increase your deductible from, say, $250 to $500. Just keep in mind you need to have the financial
resources to handle the larger deductible if the time comes.
- Keep your driving record clean so your insurance company is never tempted to raise your rates.
- Pay in full to avoid installment fees. Fees are usually charged if you pay your premium in installement payments.
Do ask about fees for paying in installments, because if the fees are small enough, it may be worth it. Just don't miss
a payment. If you can pay the premium up front, it may simplify the process and save you a few dollars.
E-Books about Auto Insurance
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