| Just as you service your vehicle frequently, you | | | | credit score as well. If you need to switch auto |
| should 'tune-up' your auto insurance policy at least | | | | insurance providers, you should do so in writing. |
| once a year. Several variables change from year | | | | Cancelling a policy because of non-payment will |
| to year that can lower your auto insurance | | | | reduce your credit score, which may inflate your |
| premium. However, you do not need to sacrifice | | | | premiums. |
| good coverage for lower rates. There are at least | | | | 7) Monitor your claim history |
| nine easy ways to reduce your auto insurance | | | | You should report all accidents/ damage to |
| rates: | | | | insurers without necessarily making a claim every |
| 1) Comparison shop | | | | time. Insurers use their claim experience and your |
| 2) Increase the deductible amount | | | | claim history to determine insurance rates that |
| 3) Reduce coverage for older vehicles | | | | are applicable to you. A poor car insurance claim |
| 4) Reduce auto-theft risk | | | | history will increase your premiums. |
| 5) Include safety features | | | | 8) Take advantage of discounts |
| 6) Maintain a good credit record | | | | Insurers are not always forthcoming about the |
| 7) Monitor your claim history | | | | discounts that they offer or they highlight some |
| 8) Take advantage of discounts | | | | discounts over others. You can significantly reduce |
| 9) Choose low-risk vehicles | | | | your auto insurance premium by asking about and |
| 1) Comparison-shop | | | | taking advantage of one or more discounts |
| Whether you are purchasing auto insurance for | | | | offered. |
| the first time or renewing your coverage, it is | | | | -Multiple-policies discount: Insurers typically offer |
| important to comparison shop. Insurers have | | | | discounts if you have another type of insurance |
| different rates, discounts and coverage options. | | | | with them or with an affiliate company within a |
| Comparison-shopping allows you to take | | | | group. |
| advantage of them. The most important thing is | | | | - Student discounts: Some insurers offer discounts |
| not to shop around on premium alone but on the | | | | to high-performing students or if your child is in |
| value that you get for your premium and how | | | | college. |
| well it suits your needs. | | | | -Safe driver discount: If you maintain a good, |
| 2) Increase deductibles | | | | unblemished driving record over time, insurers |
| The deductible on an auto insurance contract is | | | | reward this with savings. Defensive driving |
| virtually a self-insurance amount. The insurer does | | | | certificates can also help you qualify as a 'safe |
| not compensate for damages below the | | | | driver'. |
| deductible amount. If you raise your deductible, | | | | -Membership discounts: If you are a member of a |
| the insurer will reduce your premium rate because | | | | listed association (e.g. a motor club) or purchase |
| you reduce your likelihood of making a claim. Even | | | | your insurance through an affiliated institutional |
| so, the deductible should represent what you can | | | | agent, you can save a lot on your premium. |
| comfortably afford to pay out of pocket. | | | | -Low mileage discount: If you drive less (for |
| 3) Reduce coverage for older vehicles | | | | whatever reason), your insurance classification |
| As a rule of thumb, if your insurance premium is | | | | may change from 'drive to work' to 'occasional |
| more than 10% of the compensation you are | | | | driver' or 'drive for pleasure'. You would not only |
| likely to receive from the insurer, you should | | | | save on fuel, but on your insurance premium. |
| reduce the amount or type of coverage. You can | | | | -Baby on board discounts: Drivers who have |
| dispense with insurance coverage like collision or | | | | children generally drive more safely. |
| comprehensive coverage for older vehicles or | | | | - Other discounts include renewal (for renewing |
| those with a low market value. | | | | your policy with the same insurer), age, driving |
| 4) Reduce auto-theft risk | | | | experience and marital status. |
| If you install anti-theft devices- keyless entry | | | | This discount-list is not exhaustive. You must |
| remote controls, car alarms or steering wheel | | | | check with insurers to determine what they offer |
| locks- you will provide deterrents for car thieves. | | | | and for which discounts you qualify. |
| In addition, you can save as much as 10% on | | | | 9) Choose the right vehicle |
| your auto insurance premium (and prevent | | | | The risks of theft, safety and the cost of |
| inconvenience) simply by doing this. Car recovery | | | | repairing and replacing parts differ among car |
| systems may not prevent theft, but will increase | | | | models. According to carinsurance.com, models |
| the likelihood of your vehicle being found- leading | | | | that are high-risk for theft include Honda Accord, |
| to a reduction in premium as well. | | | | Toyota Camry, Ford F-150, Acura Integra, Nissan |
| 5) Include safety features | | | | Sentra, Toyota Corolla and Toyota Pickups. |
| Anti-locking brake systems, parking sensors and | | | | High-tech cars are costly to repair or replace and |
| air bags are some features that help to prevent | | | | attract higher premiums. In addition, cars with |
| accidents. In the case of airbags, you lessen the | | | | more in-built safety features yield lower |
| risk of bodily injury in the event of an accident. | | | | premiums. |
| Insurers recognise your effort and reduced risk | | | | Purchasing auto insurance is unavoidable. However, |
| with lower premiums. | | | | you can and must avoid paying too much for it. |
| 6) Maintain a good credit record | | | | By following a combination of premium-reducing |
| Insurers consider drivers with good credit better | | | | methods, you will reduce your risk of damage, |
| insurance risks. Paying your auto insurance | | | | bodily injury or theft. More mundanely, you can |
| premium on time will assist in maintaining a good | | | | save up to 50% on your car insurance premiums! |