Auto Insurance

With car sales prices continuously increasing, recent hikes in gas prices, and ever present sales and state taxes on our cars it has become vitally important to find ways to save money and keep costs down. One way to save money is to monitor your auto insurance and make sure you are getting the best deal possible. This may sound trivial, but can easily add up to savings of hundreds and possibly even thousands of dollars over the next few years.

First make sure you are taking advantage of all discounts available to you through your insurance provider. Many insurance companies have good driver history discounts. If you haven’t been in an accident or made a claim in several years make sure your agent adds this deduction – typical savings are 5-15% (easily $100-$400+ in savings per year).

For an additional discount some insurance companies like Progressive and Geico offer discounts for sponsored driving classes. Make sure you check with your insurance company to see which ones it accepts. Many of these classes are free or offered at minimal cost by your local DMV (Department of Motor Vehicles) or DOT (Department of Transportation). For a listing, contact your insurance company and then your state departments (DMV and DOT). These classes also work great for reducing points on your license from minor infractions (speeding, running a red light, etc…). Definitely get as many points taken off as possible. These points can increase your insurance rates 50-100% or more in some cases. Some insurance companies like Geico, Allstate, and Progressive have recently come out with good student discounts. The requirements can vary so be sure to check with your insurance company. This could amount to an additional savings of 5-10% on your annual premium. Keep in mind traffic offenses can and will nullify this and most other discounts, so drive safely.

Shop around for the best rate. I can’t stress this enough. Every few years just check and see what other insurers are offering. You could see huge savings here and it may have nothing to do with your driving record. Some insurers just have lower claims for a particular model car and therefore will have a lower rate for that car. Just to see the difference call several insurance companies for quotes. You will see a huge range. When I had a 2000 Ford Mustang GT convertible I was paying over $4000 per year in insurance with Allstate then I checked and found Progressive offered the same coverage for only $1400 (a 75% difference in my premium). Now, that’s not to say that Allstate is a bad insurer, they just have higher claim costs associated with that vehicle and a driver of my age. So, make sure you shop around and definitely check the online insurers like Progressive and Geico as they tend to have lower premiums. Also see what impact raising your deductible will have on lowering your premium.

These items might also seem trivial, but will save you money. Pick a car with lower theft rates and lower premiums. A 4 door 4 cylinder car (Toyota Corolla) will almost always have a much lower premium than the latest 8 cylinder 2 seater sports car (Mustang GT (2+ 2 seating)). It will also get you better gas mileage which in a year could amount to a savings of hundreds of dollars in it self. Stay away from convertibles as they always have higher insurance premiums. Drop unnecessary coverage like collision on an older car. Also stay away from cars with high theft rates (Honda Civics and Accords tend to have some of the highest theft rates and unfortunately you will pay for that with higher premiums and don’t think you won’t.) One more thing, don’t speed, don’t drive drunk (I don’t need to tell you what that will cost you (it could even cost you your life), stop for all school buses, wear your seat belt and obey the rules of the road. You will be glad you did.

Finding the best deal on auto insurance can either be an extremely difficult and boring task or it can be simplified enough to where its not viewed as a chore but as a way of protecting one of your most valuable investments (your prized car or automobile) for a reasonable price that you can comfortably afford. Naturally, when comparing the competing offers and quotes from the various auto insurance providers there are a few things you should be aware of in order to guarantee that you get the most amount of insurance at the very best rate or insurance premium cost.

Probably the number one feature that many consumers compare among the various car insurance companies they are thinking about purchasing their next auto insurance policy from is the price of the automobile insurance coverage. Let's be honest, this is a valid reason, especially in today's slightly inflated economy and with gas prices on a continue rise. The first thing that should be done when comparing auto insurance quotes is to make sure the insurance policies being quoted are similar among all of the auto insurance providers. Normally insurance quotes are provided free of charge and they usually last or stay redeemable for about a period of 30 days. You also can easily compare prices online at each insurance providers company website or by speaking with a customer service agent or representative on the telephone.

Although using the cost or price for your next auto insurance policy may be a good start when comparing auto insurance coverage providers it definitely shouldn't the only factor used to determine which company to obtain your next auto policy from once you actually decide to make a purchase. You should also keep in mind the quality and financial soundness of the auto insurance company. A company that offers the best rates but doesn't have the financial resources to pay out any insurance claims made does you no good along with a company that is stingy with its insurance money. Make sure and check the credit ratings for all of the insurance companies you are interested in using for your next auto policy. Another good idea is to check with your friends and neighbors to get their opinion on the auto insurance provider that currently insures their automobile.

Finally, don't forget that no matter how good the auto insurance company looks and even if the premium or monthly insurance rate fits in your budget if the auto insurance provider doesn’t meet your needs as a potential customer then they really don’t deserve your business. Customer service means alot nowadays so if it takes 30 minutes to speak to an insurance representative or if you are unable to access your auto insurance policy or account online due to constant computer problems then it may not be worth the time and aggravation even if the insurance rates really are the cheapest.

Auto insurance is one of those items where the price can vary a lot based on which insurer you go through. Sometimes your rates can vary as much as 20-30% just because of different rating factors the company may use. By utilizing the power of the Internet you can be a savvy insurance shopper and find cheap auto insurance that fits your needs while providing the customer service and support you need.

When people are shopping for a new or used car they often don't think about insurance until the last moment. Several consumers fall into the trap of obtaining an instant car loan through the dealership and inadvertently signing up for the auto insurance through the finance company. This can be one of the worst mistakes you can make. Often finance companies that roll insurance into the finance agreement will charge premium prices that have interest charges added in on top of the already high rates. When obtaining financing make sure you state up front that you will be getting insurance through a company of your choosing and not the finance company.

The best bet to finding the best deal on vehicle coverage is to do your research before you buy the car. By knowing up-front what type of car you are looking for most insurance companies can provide you with a basic quote that is in the ballpark of the rates you can expect to pay. Remember, never drive off the lot with any car until you have the insurance purchased and finalized. Accidents can happen anywhere at any time. The last thing you want to happen is to be in an accident without insurance.