Lowering Your Auto Insurance Costs

By: Michael Silva

It is very important to understand that prices vary from company
to company, so it pays to shop around. Getting at least three
price quotes will serve you well. You can either call companies
directly or access information over the web. State insurance
departments are also a good source of prices and options
available.

The main reasons for buying insurance are to protect you and
your family financially and provide peace of mind. Finding a
company that is financially stable is very important. You can
check the financial well being of insurance companies using
rating companies such as A.M. Best and Standard & Poor's. You
might also try some of the more popular consumer magazines.

You should also get quotes from different types of insurance
companies. Some sell through their own in house agents and
others through independent agents who offer policies from
several insurance companies. There are also insurance companies
that sell directly to consumers over the phone or via the
Internet.

Be careful that you don't shop price alone. Asking friends and
relatives for their recommendations is a smart thing to do.
Contact your state insurance department and find out whether
they provide information on consumer complaints by company. Make
sure and choose an agent or company representative that takes
the time to answer your questions and address your concerns.

Car insurance premiums are based in part on the car's sticker
price, the cost to repair it, its overall safety record, and the
likelihood of theft so make sure to check into insurance costs
before you buy a new or used car. Ask about discounts for
features that reduce the risk of injuries or theft. Things such
as daytime running lights and anti-theft devices for example.
The Insurance Institute for Highway Safety can provide you with
information that will help you decide what car to buy.

You might be able to lower your costs substantially by
requesting higher deductibles. Increasing your deductible from
$200 to $500 could reduce your collision and comprehensive
coverage cost by up to 30 percent. Before choosing a higher
deductible, be sure you have enough money set aside to pay it if
you have a claim.

Dropping collision and/or comprehensive coverage's on older
cars that are worth less than 10 times the premium is definitely
something to consider. You can research the value online at
Kelley's Blue Book.

Many insurers will give you a discount if you buy two or more
types of insurance from them or if you have more than one
vehicle insured with the same company.

Establishing and maintaining a solid credit rating can help cut
your insurance costs. Insurers are increasingly using credit
information to price auto insurance policies. Check your credit
record regularly and correct any errors promptly so that your
record remains accurate.

Some companies offer low mileage discounts to motorists who
drive a lower than average number of miles a year.

There are also companies that offer reduced rates to drivers
who get insurance through a group plan from their employers. You
may also qualify if you belong to a professional, business,
alumni or other groups and associations.

If you have not had any accidents or moving violations for a
number of years you may also qualify for a discount. Taking a
defensive driving or drivers education course may also qualify
you for a lower rate.



About the author:
Michael Silva has been conducting business on the Internet for
the past 9 years and has extensive knowledge in the areas of
marketing, promotion, training and affiliate programs. You can
find 1000's of articles on a wide range of topics by visiting
http://www.ahowtoguide.com