Article Details Article Details1. Request a Higher Deductible
Many insurance companies offer a lower monthly auto insurance rate if you opt for a higher deductible. The advantage for the insurance company is that, if you do get in an accident, they will receive a larger portion of the repair costs that they will have to pay. An advantage for you, especially if you are low mileage and safe driver, is that your monthly rates will be considerably lower and if you don’t get in an accident, you will not have to pay the inflated deductible rate. This is especially useful for vehicles you rarely drive or are high value vehicles.
2. Limit Coverage Selection on Older (or less valuable) Vehicles
If you own a vehicle that is 10 years are older, chances are that the value of the vehicle is seriously diminished and that the vehicle is paid off. Therefore, it is not cost effective for you to pay the increased premium required for full coverage and it will be cheaper for the policyholder to simply limit the collision coverage you have on the vehicle. The generally used calculation is that if the vehicle in question is equal to less than 10x your premium, it is not cost efficient for you to have full coverage and you should probably obtain a lesser level of coverage for that vehicle.
3. Use the Same Provider for Multiple Forms of Insurance
It is easier, more efficient and cheaper for insurance companies that offer multiple forms of insurance (such as home, life and health) to have clients that purchase and utilize all of the services they offer. The insurance companies typically will in turn pass down these savings, typically in package form, to the consumer. This is one of the best ways to save on all forms of insurance and one of the primary reasons that, if you are getting a new form of insurance, the first place you should look is your current provider. Insurance companies are also more likely to negotiate with current policyholders that are adding new forms of insurance for this very same reason. Don’t be afraid to ask for a decreased rate, you are their customer and their source of revenue and without you, they would not be in business.
4. Maintain a Good Credit Score or Improve your Current Credit Rating
One of the most common methods that insurance companies use to price the automotive policy of a new customer is their credit rating. Credit rating indicates an individual’s capability to pay their bills and since insurance policies can be one of a person’s most expensive liabilities, it is apparent why this would be an important consideration to the company. This reasoning is also why someone with a higher credit score, as opposed to a low credit score, is more likely to get a lower monthly rate, as they are less of a risk to the company and more likely to pay their bills. The easiest way to increase your credit score is to pay all of your bills on time and not over-extend your existing credit lines.
