Are you ready to renew your auto insurance? Are you purchasing a vehicle for the first time and need to keep costs down? If so, then you need to know how to get your insurance costs down.
While this can take time and effort, it can often result in huge savings. read on as we discuss the best ways to get great personal auto insurance quotes.
1. Work on Your Credit Score
Most states take your credit score into account when giving you quotes on insurance. Working on lowering your credit score is not an instant fix, and needs to be done over a period of time. However, it is the most important way to get better offers on auto insurance.
Start by working to reduce your level of debt. Set up automated payments so that you are consistently paying bills on time. You should aim to decrease your debt to income ratio by paying off any outstanding loans you already have.
Studies have found that drivers with lower credit will pay more for insurance. Luckily, residents of Hawaii, Michigan, Massachusetts, and California will be exempt as insurers are not allowed to check their past history.
2. Shop Around for Personal Auto Insurance
Auto insurance quotes are very personal. One company may value other factors more highly or less than others, meaning two similar people can have quite different quotes. This means that unless you get a quote, you really don’t know which company will be best for you.
If you have seen companies claiming to be the cheapest, this can not really be guaranteed. They may be great for you but expensive for others. This is why it is important to shop around.
Compare quotes from a range of companies. Always remember that comparison sites are getting a commission, and some sites not included on them may be even cheaper. This means contacting companies directly to get the best deals.
You should also pay attention to local providers. Just because they do not have the marketing budget of the larger providers does not mean they provide less of a service. They can often give better quotes and have better customer service.
3. Bundle Insurances
If you have to get insurance for a range of persons or cars, it can sometimes work out cheaper to get an all-in quote. This can often work out cheaper than getting individual quotes for each driver or vehicle.
The logic for this is that auto insurance providers want your business. A large contract is quite lucrative, especially if they manage to get you renewing for a few years. This can result in cheap auto insurance.
Total up all the cars and drivers you have in the household. Call your insurance firm or let them know you are interested in multiple insurances and ask them what the discount would be.
This can also run to other types of insurance You may be able to get auto insurance along with home or property insurances.
4. Take a Defensive Driving Course
Defensive driving courses can lower a personal auto insurance quote in a number of ways. Firstly, taking them can actually reduce the points on your license. Points are often taken into account when you make an application, and raise the price of insurance.
Secondly, they are a formal qualification to show you are a careful driver. However, not all insurance providers will take a course into account when giving a quote. If you have taken one, ask your insurance firm or let them know before you apply.
5. Downsize Your Vehicle
There are a lot of benefits to downsizing or changing your vehicle altogether, particularly if you have a large SUV or gas-guzzling machine. Larger cars will be hard to find cheap auto insurance for. This is because of a number of reasons, from an increased likelihood of theft to the cost it takes to repair or replace them in a crash.
There are also incentives in place for green fuel cars. You can often get a reduction in costs for electric or hybrid vehicles.
6. Discuss Discounts
Aside from the aforementioned discounts for eco-cars and insurance bundles, there are even more discounts available for drivers. You should ask about these when you get a quote, as you may qualify without even realizing it.
Clean driving records are always prime candidates for a sizable discount. You can also get discounts for receiving documentation digitally, or even if you are a member of certain professional organizations.
Most quotes can also be made cheaper if you decide to pay in a lump sum. You may have the option to pay a six-month premium or the annual sum in one go, with the annual usually bringing a higher discount.
7. Raise Your Deductible
The deductible is an amount you have to pay from your own pocket before the insurance begins. For example, if your deductible is $500 dollar and an accident requires $2000 dollars, you will pay $500 and the company will pay the other $1500.
The higher your deductible, the lower your insurance will be. However, you should only raise it to a level that you know you would be able to afford. If you trust your driving and know you are very unlikely to have an accident, it may be an option.
Start Looking Early
Once you have the personal auto insurance tips, start to shop around early. Leaving it late can result in having to take bigger, pricier options.
Your first stop should be Amistad Insurance Services. We are your one-stop local insurance agency. Contact us today and let us provide you with a competitive quote so you can drive away with a smile on your face!
