Direct Car Insurance

How To Lower Auto Insurance Costs

It seems these days that it costs more and more to keep your car. With most new cars in the $22,000 + range, the monthly payments can be high. The cost of gas is now over $3.00 a gallon for regular and we're in a time where a lot of people drive long distances to get into work. Then, there's the cost of car insurance. Fortunately, you can buy a cheaper car, live closer to work, and by doing your homework, you can save money on car insurance.

The first and easiest way to shop around for car insurance is over the internet. Most insurance companies have sites where you can easily plug in your personal information such as type of car, area you live, past driving record, etc. and you can get an instant quote. Some insurance companies even brag that they will give you quotes from three different companies at one time, even if their quote is not the lowest.

To reduce your insurance the first thing you can do is consider lowering your deductible. If you increase your deductible from $500 to $1000 you can save a great deal on your collision and comprehensive coverage. $500 more out of your pocket in case of an accident might seem like a lot, but consider the number of years you'll accrue the savings while accident free. Also, if you pay for AAA you won't need to have towing coverage under your auto insurance.

There are several things you can look for when you purchase your car that might help reduce the insurance costs. Does your car have an alarm system? Lo jack? Anti lock brakes? Air bags? Daytime running lights?

Try to keep your yearly mileage low, this helps lower the cost. Also, if you have a student driver what types of grades is he or she getting? Students with higher grades generally pay less. If you haven't had an accident in more than three years this can be very good news for you. Even better is no traffic ticket and no points on your license. Most insurance companies will reward you for this with lower premiums.

Do you carry homeowners with the same company? This can get you a discount. If you live in an extended family situation is anyone else insured by the same company? This could mean another discount for you.

When your policy comes in the mail don't toss it in the drawer, go over your policy, make sure that you understand how they calculate your cost for the policy. It doesn't hurt to shop around for better rates. All it takes is a quick phone call. When you do this make sure you have your policy renewal in front of you so you'll know exactly what your coverage amounts are.

By Tim Henry