How to reduce car insurance rates

Comparison Shop – If you have been with a company for a couple of years, you may have noticed that your auto insurance rates have gradually gone up substantially from when you first started off. The reason for this is because insurance companies give you good rate to get your business and keep those rates in place for about 6 months or so and then gradually increase them in such a way that most people would not even realize it or won’t care enough to switch to a new provider. So the very first thing you need to do is to call your current insurance company and tell them to reduce your rates. In some cases, your auto insurance company may be willing to reduce your rate depending on how long you have been with the company and how good a customer you have been for them from profitability standpoint. So, incase you are not able to get the insurance reduction that you are seeking, the first thing you need to do is get quotes from other companies. In vast majority of cases, the new rates will almost always be lower than what you are currently paying and you are likely to save couple of hundred dollars with the new provider.

What are low mileage discounts?

If you work from home or commute to work only a day or two to the office, your auto insurance company  will be glad to give you low mileage discount. The reason they do this is because you are not on the road that often and so you are less likely to get into auto insurance accidents.

Raise your deductibles

One of the easiest ways to reduce your auto insurance premiums is to raise the deductibles on your auto insurance policy. By raising this amount, you are exposing yourself to more financial risk should you get into an auto accident because you will need to shell out more money out of your own pocket to cover the repairs on your car. If you are financially well off and can take this risk, then you should definitely raise your deductibles in order to lower your car insurance premiums.

Major changes in your life

Auto insurance premiums change based on certain new factors. For instance, if you get married, you should notify your insurance company and let them know because almost every auto insurance company provides better rates to married couples than people are singles. The reason they do this is because statistically, they know that married people drive a lot more safely and get into a lot less accidents and moving violations, thus reducing their cost to insure this people.

Another time when you should get a reduction in auto insurance premiums is when your kids are not on your policy or move out of your house. Young people tend to be a lot more costly to insure than older people and so when your kids are not in the same household under your policy, expect to get bid reduction from your insurance company. But they will not do this on their own. You need to notify them and get the reduction that you deserve.

 

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