5 Tips to Save on Auto Insurance
Do you own vehicles? Have you ever covered your cars with auto insurance? Auto insurance should necessarily be a part of your budget. If your auto insurance has been expired and you are going to renew it, must follow the 5 tips to reduce your cost.
1. Shop Around…the Right Way
Before renewing your auto insurance, you should make bunch of calls to all insurance companies offering auto insurance. There is no fun in making calls rather it is for comparing the premium prices. Spokeswoman for the Insurance Information Institute Loretta Worters opines that “there is a big difference in the princes being offered by the insurers; however you must be consistent with comparing the prices for policies you purchase”.
She further suggests that “try to research financial track record of the company and make sure that it is financially stable to fulfill your claims”.
2. Safety Matters
Safety record of a car’s driver can help to reduce the auto insurance premium costs. According to vice president at MetLife Auto & Home Michael Convery “most of the insurance providers offer discount to those who have completed their safety driving course. He says that if you have a good driving track record –showing your safety driving abilities- you can get hefty savings in renewing your auto insurance.
It goes without saying that the type of car you drive will also help you to reduce the cost of auto insurance. Worters opines that those cars which have features to reduce risk of injuries get more benefits from the insurers. To find out such cars which have good safety features, you should visit www.iihs.org
3. Consider a High Deductible Plan
Drivers can reduce their monthly premiums by opting for high deductible plans. Worters says that drivers can save 15% to 30% on collision by raising their deductible to $500 from $200. Vice president of education and research at Independent Insurance Agents & Brokers of America, Bill Wilson suggests that “high deductible plans will help you to reduce your expenses”.
4. Bundle for Savings
Insurance industry is supposed to be competitive industry in the United States. If you are purchasing multiple policies from the same insurer, it will also give your bundle of savings. Wilson suggests that before opting for new companies, you should negotiate with the current insurance company.
5. Maintain a Good Credit Standing
Your credit score plays pivotal role in determining the auto insurance costs. Worter says that most of the insurance companies check credit information to set price for auto insurance. It has been researched that those people who pay on time have high chances to reduce the costs of auto insurance.