Everyone wants to shrink his or her expenses, and if you know how, targeting a reduction in your car insurance would be a good place to start.
Some estimates show that, on an average, a driver spends about $ 85,000 in his lifetime over insurance.
The average monthly insurance premium of around $850 is a highly variable figure, as several factors could play a part in deciding your premium.
You can read below some of the factors that affect auto insurance premium rates.
Get same price estimates from different insurance companies and compare well, instead of accepting the first quote, as you could see price variations fluctuate almost 500-600% between the different brands.
Take time off to find the discounts you could wrangle from the insurer, which may include sparing use of the vehicle with annually low mileage, installation of anti-theft devices.
Other factors include continuing with the same insurance company for a long time and certificates from accredited driving courses for those over 50 years age and removal of your child from the policy, if he is not a frequent driver.
Review your policy regularly to factor in the changes as the years go by.
You may pay for extra coverage, if you changed vehicles or added or removed a driver or a car or reduced your annual mileage.
All these factors call for regular review and you may see your policy premiums decrease.
Factors such as your credit card history including good payments without unpaid debt, bankruptcies and the like, help to shore up your credit-based scores for the insurance companies who access these details to estimate the potential action of the insured with respect to the prospects of his making a claim and the estimated costs associated with it.
A good driving record is definitely to the advantage of the insured in arriving upon the premium.
A good motorist can affect savings of $100 to $ 270 per month.
Since different states have their least liability requirements of coverage, you would do well to check with your state insurance departments to consider the meaningful option of dropping a few covers and save money.
In this connection, look for coverage on policies about collision, comprehensive insurance, un-insured motorist (for hit and run cases) and under-insured motorist insurance.
Changing your car may make a positive impact on insurance premium reduction because the same make and model may come with a different engine configuration that might shoot up your premiums.
Learn the insurance cost for your vehicle, and sometimes, changing your car may get you significant reductions.
Moving to a rural area may also cause the premiums to drop, as suburban life is more unsafe for the cars because of crowding.
One of the best ways of realizing quick savings on your insurance premiums is to increase your deductible, which is what you agree to pay in advance when an accident occurs, before the insurer releases money.
The insurer charges you a lower monthly premium and may pay a smaller settlement amount, but on a reasonable estimate, if you pay a deductible of $1000, you can expect a 40% reduction in your monthly insurance premium.
However, beware; if you do not pay your deductible as agreed the Insurance Company may settle only part of your claim or none at all.