There are a few well-known car insurance tips and tricks that help drivers save substantial money. And there are a handful of secrets that are known to few people in the industry. They offer such in-depth knowledge that makes it much easier to get lower premiums. Companies wouldn’t want you to learn them because they allow them to make more money at your expense. This post will deal with the latter but there are plenty other posts on this site on discounts to help our readers.
You can get really economical coverage 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 and you can get only so much rate reduction for being a good driver. If you already have five years clean record you probably have the maximum. 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 motorists reduce premiums? These are all tried and tested solutions and most of them work for every type of applicant.
- Credit score may be more important than 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 you pay. If you are one of those people with terrible credit history you should read this post titled how to improve credit score.
- A few carriers 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 clearly well off ones. This point has been subject of various studies that demonstrate the premium gap between poorer single parents who are renting and richer people who live in nice parts of towns and own their home.
- One of the least known facts is that discounts may not be offered automatically, especially to long-standing loyal customers. Only a few companies check eligibility or new qualifications at each renewal. On the other hand, almost all of them check and apply surcharges 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.
- If you want to keep the provider on their toes you need to shop around at each renewal. In some places the premium difference between the cheapest 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 and pay an arm and a leg. And the best way of doing it is comparison shopping. This will quickly tell you if you are paying too much to insure 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 rate increase or don’t see any discount for not making claims. And they charge such policyholders more unless they are asked. So, you can end up being treated badly if you don’t ask questions, demand all the savings you can get and compare alternative quotes.
- Most of them offer 6-monthly policies because they want to leave their options open as they are in a risky business. One of the least appreciated tricks is not to get too comfortable and always look for better coverage, lower price and more reliable source. So, take the chance every six month to go over coverage and see if it 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 vehicle insurance You hardly know how an agent or broker operates. One of the secrets is that they work on commissions, which are paid by carriers and not customers. So, if they pay the agent can you actually call him/her your agent? Independent brokers can at least check several sources for prices. But did you know that tied agents can only work with one 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 they are being nice by spreading the 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 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 rates for women because they don’t cause as many accidents and when they do they are not as destructive. That is why they can offer better prices for ladies.
- Teenagers may have to pay as much as 4 times more than middle-aged people. However, there are still a few tricks youngsters can use to lower 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 drivers you may have to pay higher when they aren’t keen on the business.
These will help anyone looking for an affordable policy. You can find many of them on this website and similar other sites. It is no secret that you won’t get the best deals if you aren’t looking for them. So, keep trying and you will no doubt see the benefits.