When you get a quote you see a dollar figure but many details are considered before arriving to that figure. Some of those are external and you cannot do anything about them. You can affect a few of them to get cheap auto insurance costs in short, medium and long term. Here are some of those choices you make that reflects on your car insurance costs.
1) Car You Buy: When you are buying an expensive, sporty automobile, SUV or 4×4 you probably know that you will have to pay a lot more for insuring it. You need to either accept this fact or go for a standard family sedan which is reasonably cheap to insure. You can find out about the insurance ratings of a car or the exact cost of insuring it before you make the purchase.
2) Claims You Make: You would probably be surprised to see this on the list but some claims can be avoided. Alternatively, you can elect to pay for the damages out of your pocket. Being claim happy will cost you as early as from next renewal. Therefore, you may need to think for a few minutes before calling your insurer.
3) Credit Record You Keep: It is your money and you are in charge of spending it. Some people may have a bad credit record due to unavoidable circumstances like loss of a job. However, many more people run into money problems as they lack control and spend money like there is no tomorrow. If you want to cut your insurance costs as much as quarter you should maintain a good credit history.
4) Traffic Tickets You Receive: Again you have to take responsibility for the failures in your driving. Initially, you may think that the police officer was mean or you were unlucky. But you will have to come to terms that it was down to you. If you want to keep your premiums low you will need to avoid violating traffic rules there is no two way about it.
5) Coverage You Want: When you sit down in a restaurant and have a starter, main meal, desert and a few drinks with it you expect the bill will be higher than just getting take outs or cooking at home. The same applies to policies as well. The more you add the higher the prices gets. You need to think about what you really need and what you can afford to leave out. There are no frill full auto insurance policies in the market that can be purchased at a reasonable cost. And there are the ones that cover tens of things you will never need and still pay for it.
6) Deductibles You Ignored: Many people don’t think twice about deductibles and some people desperately want them to be as low as possible. There is a price for everything and the price of low deductibles is higher premium. Next time inquire about different levels of deductibles and how it would change your premium.
7) Payment Method You Elected: It sounds nice to spread the premium over several months but if there is no additional costs. In most cases there would be additional costs since you will be getting a credit from the insurer or a separate financial institution. Technically, the premium is due at the time of policy inception. Furthermore, you may get extra discounts for paying the premium in full with some companies.
8) The Way You Arrange Your Insurance Policies: You may have another car, a home or a renters’ insurance and you may be buying them all separately from different companies. You can save money by bundling your policies. You can buy a multi-car policy for all your vehicles (including RVs in some cases) and insure your home and autos from the same company for the maximum savings.
9) Where You Buy Your Roadside Coverage: Did you know that recovery services provided by insurers are limited as compared to companies like AAA. Also, some companies can monitor your recovery call outs and increase the premium if you have had a few. Logically, you are not looking after your car or you are naturally careless if you need someone to come and rescue you and your car on a regular basis.
10) The Way You Shop for Vehicle Insurance: You may be a great driver with excellent credit history and no negative record on your name and yet an average driver can pay cheaper for the same type of coverage for a similar vehicle. The reason is simple because they shop around for the best deals. You should always get a few quotes and compare them before pulling out a wallet faster than a western gun slinger you see in the movies.
Know that you know them you may think about their influences. And see if you could alter your preferences that lead to lower auto insurance quotes. Alternatively, you now know why you are paying more than your neighbor for the similar car and coverage and you have no complaints about it.