How to Keep Insurance Cost Down

How to Keep Insurance Cost Down

Auto insurance providers will normally base the rates on several factors like your driving record or type of vehicle you own and its history. Listed below are several ways in which you can get lower rates or cheap car insurance.

1. Your vehicle has at least one or several anti-theft gadgets installed.

Insurance companies can give discounts as high as 15% on your comprehensive coverage as long as you have very effective anti-theft gadgets installed on your vehicle. Usually, the most effective of these gadgets are already built-in by the vehicle makers. One of the most effective is the motor cut-off switch. It is a device that disables the motor if the correct key is not inserted.

2. You decided to combine your insurance policies with the same insurer.

If you already have a current policy like homeowner’s insurance with the insurer, you could get a 10 to 15% discount on your auto insurance.

3. You have a good and stable credit score.

Generally, insurers consider drivers or vehicle owners with good credit scores as good customers who deserve lower auto insurance rates. The insurance company will check your credit scores as part of their routine check. You have to check your credit standing from time to time in order to ensure that there are no adverse reports on you. If there is a negative report on your credit standing, you must do all you can to have it removed.

4. Some vehicles get lower insurance rates.

Statistics and scientific crash tests have shown that some vehicles are better at saving its driver and passengers from injuries during accidents. Owners of such safe vehicles are given a discount on their personal injury protection coverage or its equivalent. However, insurers also take into account the amount of damage that certain vehicles can inflict on other vehicles during accidents. Such a vehicle can get a higher premium because of the large amount of damage it can inflict. Sports utility vehicles usually pay higher premiums because of this while many sedans and minivans do not.

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5. Auto insurance providers give discounts to safe drivers.

Insurance companies could give discounts by as much as 40% to those they deem as safe drivers. If you have not been involved in any vehicular accidents or traffic violations for the past three years, you are eligible for such a discount. Those who successfully passed a defensive driving course are also qualified for lower rates.