There are a few well-known auto insurance tips and tricks that help drivers save money on premiums substantially. And there are a handful of secrets that are known to few people in the industry. They offer such an in-depth knowledge that makes it much easier to get lower premiums. Insurance companies wouldn’t want you to learn these secrets because they allow them make more money in your expense. This post will deal with the latter but there are plenty other posts on this site on discounts and savings to help our readers.
You can get really economical auto insurance and be completely satisfied with it if you make the most of all the discounts on offer and avoid surcharges. Usually there is a limit to amount of discounts. You can get only so much discount for being a good driver. If you already have five years clean record you probably have the maximum discount. However, there are other savings to get and some of the tips and tricks to get them are listed below.
Here are 10 auto insurance secrets revealed to help drivers reduce their premium?
- Your credit score may be more important than your driving record for some companies. When this happens you could be penalized for a poor credit score so badly that a driver with DUI may laugh at how much premium you pay. If you are one of those drivers with terrible credit history you should read this post titled how to improve credit score and vehicle insurance rates.
- A few insurers calculate premiums based on predictions of making claims, instead of predictions of having an accident. When you look at it like that poorer drivers with hardly any savings in the bank may end up paying more than the drivers who are clearly well off. This point has been subject of various studies that demonstrated the premium gap between poorer single parents who are renting and richer drivers who live in nice parts of towns and own their home.
- One of the least known car insurance secrets is that discounts may not be offered automatically, especially to long-standing loyal customers. Only few companies check discount eligibility or new discount qualifications at each renewal. On the other hand, almost all insurers check and apply surcharges and premium increases immediately. That is why it is important that you understand what discounts you qualify and what surcharges should drop. That brings us to the next secret.
- If you want to keep your insurer on their toes you need to shop around at each renewal. In some places the premium difference between the cheapest insurer and most expensive insurer can be as much as 8 times for an average driver. You probably won’t believe it but you should nevertheless make sure you are not going to get caught by the most expensive insurer and pay an arm and a leg. And the best way of doing it is to compare online auto insurance quotes. This will quickly tell you if you are paying to much to insure your automobiles.
- Automobile insurance price optimization is not just a myth, as reliable sources believe it is going on in the industry. What it means is that companies know which policyholders wouldn’t look for alternative quotes even if they see car insurance rate increase or don’t see any discounts for not making claims. And they charge such policyholders more or don’t apply all the discounts unless they are asked. So, you can end up being treated badly if you don’t ask questions, demand all the discounts you can get and compare alternative quotes.
- Most auto insurers offer 6-month car insurance because they want to leave their options open and insurance is that much a tricky business. One of the least appreciated trick is not to get too comfortable and always look for better coverage, lower price and more reliable insurer. So, take your change every six month to go over your coverage and see if your premium is still competitive.
- Most US motorists heavily rely on agents and brokers to find them the best deals. However, it is easier to find better rates when you know the tricks to get cheaper car insurance You hardly know how an agent or broker operates. One of the secrets is that they work on commissions, which is paid by the insurer and not the customer. So, if the insurer pays your agent can you actually call him/her your agent? Independent brokers can at least check several insurers for prices. But did you know that tied agents can only work with one company or the same group of companies?
- Technically, premiums are due in full at the time of policy inception. If you are allowed to pay in installments there is a high chance you are charged installment fee or interest. So, don’t think that your insurer is being nice by spreading your payment. Carriers usually find a way to make you pay for things that look like favors. If you can afford it, pay in full and avoid the charges.
- Homeowners pay less than renters. On average, renters pay about 8% more for insuring their automobiles. You may ask what is the relation but there is a correlation between homeownership and claims. In the same way, women pay less than men too. Most companies offer cheaper car insurance for women because they don’t cause as much accidents and when they do they are not as destructive. That is why companies can offer better rates for ladies.
- Teenagers may have to pay as much as 4 times more than the middle-aged drivers. However, there are still a few tricks young drivers can use to lower their rates. That is why it is essential that teenagers spend a bit more time to look for the best deals. If you don’t try hard to find the most affordable insurance for young driver you may have to pay higher rates to an insurer who isn’t keen to insure you.
A few auto insurance tricks and tips will help anyone looking for a cheap premium. You can find many of them on this website and similar other sites. However, you need to know certain secrets of car insurance prices to arrange a good coverage and save a lot of money. It is no secret that you won’t get the best deals if you aren’t looking for them.