Auto Insurance — How To Qualify For More Affordable Rates
November 4, 2009 by Chimezirim Gabriel Odimba
Filed under Auto Insurance
This article is about other ways you can get cheaper rates. Also take note of the precaution you are advised to take as you make use of these tips…
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. Depending on the insurer, you’ll be eligible for a discount of 5% once you’ve stayed with them for between three and five years.
Most insurers will also not raise the rates of a long standing policy holder if they make only just one claim. These are all incentives for you to stay with them for as long as possible. The longer you stay, the more you’ll save.
However, what you may save by switching to another insurer might far outweigh all the incentives you’ll get depending on what your rates are and how much another insurer is ready to offer.
Assuming your auto insurance rate is $2,500 and you get a five percent discount when you stay for up to 5 years you’ll pay $2,500 – (5% of $2,500 or $125) = $2,375.
But also know that your rates may be altered to reflect the effect of inflation. Between these 3 years you might get an insurance provider who will offer you the same auto insurance coverage or better for less than $2,000. In this regard, it will be pointless to stay put because you want to get a loyalty discount down the line when you can get cheaper rates immediately.
Furthermore, in most cases, most folks will easily pay cheaper rates than they are presently on auto insurance if they shop right.. Since the process of getting and comparing auto insurance quotes involves just minutes, I will wonder why you won’t do that instantly and get lower auto insurance rates immediately.
2. You’ll lower your auto insurance cost if you have an outstanding credit rating. Having a bad credit rating is simply making it difficult for yourself in addition to the fact that your rates will be much more. There are several reasons for this but this one ranks high among them: If you have a poor credit rating then it could only mean you have defaulted in payments at some points. For some insurance carriers it shows a pattern they believe you might repeat with them in premium defaults. This perception of high risk makes such individuals attract higher rates in car insurance and other policies.
3. Opting for high deductibles is a proven way to attract cheaper rates. The best choice is the highest you can provide with ease.
I must stress that you’re bound by law to provide this amount if you ever file a claim. Therefore make it as high as you can but ensure it’s within easy reach.
4. grab every opportunity to avoid driving your car since this will reduce your mileage and, by extension, your rate. This is particularly recommended for people who reside in cities with modern mass transit networks.
Another recommended option for folks who want to cut down their mileage is joining a car pool.
5. You will get discounts with a number of insurers if you’re part of an auto club. Don’t let the size of the discount this may get you deter you from going for it if it makes sense in your situation.
To learn more go to Discount Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba helps people save on insurance.
