Car maintenance, Car Repair and Car Buying Tips and articles

This article will show you other ways you can get cheaper rates. Here they are with a precaution you you’ll do well to note…

1. The longer you stick with the same insurer the more you stand to gain for two reasons: The long term discount and accident forgiveness. 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. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones.

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.

Cheap Auto Insurance

If your auto insurance premium is $2,500 and you are given a 5% discount when you maintain a policy with them for up to 5 years you will pay $2,500 – (5% of $2,500 or $125) = $2,375.

However, bear in mind that your rates may be altered to reflect the effect of inflation. 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 will give you comparable coverage at a lower rate. Then it would be anything but wisdom to stay put because you want to qualify for a discount down the road knowing that the expected discount is less than savings you will get immediately if you switch.

It’s a sure fact that most folks can pay a lot less with another insurer if they will only take the time to shop right.. Considering that the process of obtaining and comparing auto insurance quotes involves just minutes, I’ll wonder why you won’t do that now and get more affordable auto insurance rates immediately.

2. Maintain an outstanding credit rating. Those who have poor credit pay higher rates for all forms of insurance and that includes auto insurance. There are several reasons for this but this one is prominent among them: If you have a poor credit history then it could only mean you’ve missed payments somewhere. The truth is that they believe that the probability of you defaulting in your premiums is very high. This translates to more risk to them and more expensive premiums for you.

3. Selecting higher deductibles is a sure step to attract lower rates. It is a wise move to have a deductible that’s as high as as you can make it but also within easy reach.

Just take note that this is the amount you’d have to pay for by yourself if you make a claim.

4. grab every opportunity to avoid driving your vehicle because this will reduce your mileage and, by extension, your rate. This surely is the way to go if you reside in an urban area where you can take advantage of standard mass transit networks.

You can also cut down your mileage by joining a carpool.

5. Many insurers will give you a discount if you belong to an auto club. Even if this discount is quite little it’s still some savings for you.

Get more tips at Discount Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba writes on financial matters.

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