How Much Can You Really Save on Auto Insurance?

We regularly see enticing advertisements that suggest we can save 15% or $500 on our premiums. It may be naïve to believe everything that we hear within an advert. In the same way, there may not be any reason for being skeptical about them.  The answer may be both yes and no to the question of can you save money.

What Discounts You Can Qualify?

It will mostly depend on your circumstances and what discounts you can qualify. Companies will not offer you savings unless they are likely to save money as well. Generally, good drivers with no claim and traffic tickets are profitable for car insurers and they are likely to get around thirty percent savings.

It doesn’t make sense that you pay as much as any other driver. When you prove that you are a safe bet you see your dues to be reduced. This is a perfect example of risk and rewards playing to cancel each other. Risky drivers pay more while low risk ones enjoy low premiums.

There are two more large discounts to qualify before looking at smaller savings. You can maximize your savings by choosing a car with low insurance ratings. Cars are rated based on their crash test results and statistical claims evidence. If your new automobile is considered high risk then you would be paying higher premiums.

On the other hand, you will qualify for discounts if you drive a safe automobile and it has all sorts of security features to prevent it from being stolen. So, specifications of your vehicle will affect your insurance rates considerably. You may have to change your auto to maximize the discounts.

The next large savings can be achieved by having a great credit score. This is getting even more important as everyday a new study proved the correlation between claims and credit score. You may need to find a company that offer the largest discount for motorists with good credit history.

There are a few more reasons for offering you lower premiums. These are your zip code, profession, yearly mileage and any memberships to recovery services and other professional bodies. For example, soldiers can get better rates from USAA.

How Else You Can Save? 

You can indeed take up the companies on their offer and see if they can beat your current renewal terms. Every company that you approach for a quote potentially can offer you lower prices. You just have to check if this is the case or you are still better off where you are.

Ideally, you want to get four or five quotes and compare them to each other and your current policy. The trick here is to ask the quotations always on the same basis. This will make your life a lot simpler when you sit down to compare them and choose one. Otherwise, you may only confuse yourself and not realize why certain policies are more expensive than the others.

Combining Policies 

Insuring all your cars under one policy or buying home and auto insurance from the same company can save you money. The good thing is that you would probably be able to tell which company is better and switch to the one you like. There are a few other ways and you can find out about them by checking other blogs and forums. Use all the information available to you and pay less.

This entry was posted on May 23, 2014. Bookmark the permalink.