Get Lower Rates Today – Follow These Easy Steps

Are you tired of paying high premiums month after month? If so, read on to find out how to start saving on your monthly insurance premium!

In order to get the lowest possible price for your car insurance you first need to know what the minimum requirement is for auto insurance  in your state. This requirement can be found through the Department of Motor Vehicles or your insurer.

Another good thing to know is how car insurance companies decide what they will charge you for insurance. These are called underwriting factors. Once you understand what these factors are and how they apply you can begin shopping around for the lowest insurance quote.

Some of these underwriting factors include, but are not limited, to the following:

  • Age – Drivers under 27 are more likely to have a higher premium;
  • Where You Live – Drivers that live in the city usually pay more for insurance than drivers that live in the country since more cars mean more risk of actually getting into an accident. High-crime areas also lead to higher premiums;
  • Safety Features – Does your car have automatic seatbelts? How about a car alarm? The more safety features a car has the lower the rate a driver usually gets;
  • Driving History – A history of speeding tickets or accidents follows drivers around for several years and leads to higher rates;
  • Credit History – Poor credit history will usually ensure a driver fails to get the best insurance rates available.

Now to start saving on car insurance drivers should take the following steps to start saving on car insurance:

  • Choose as high a deductible as possible. The higher the deductible the lower a monthly insurance premium will be. A $1,000 deductible can knock off about 30-40% off a premium. One caveat though is that those savings could easily disappear with a few accidents.
  • Bundle your coverage to include your car, boat and home with one insurer to maximize your discounts and streamline your payment options.
  • Don’t pay for more insurance than you need by eliminating extra coverage. For example, if your car is worth only $1000, you can eliminate collision and coverage and pocket the savings.

In the end though shopping for insurance is much like shopping for anything else. You shop where the best prices are. And by comparison shopping drivers can potentially save hundreds each year on car insurance.