These days, it pays to save every penny possible. Auto insurance can take a major bite out of your monthly budget, but there are ways to reduce your premium. Some of these car insurance reduction strategies are common knowledge - one could even say common sense - but others are less well known. If you're in the market for new auto insurance or your car insurance is up for renewal, these tips can help you get the best possible deal on affordable auto insurance.
Check Your Current Policy
You may be paying for insurance coverage you don't need and will never use. Do you really need roadside assistance provided by your auto insurance company? You're probably paying for it but there's a good chance that you have roadside coverage already. Many credit card companies offer roadside assistance as part of their membership perks, for example, or you may have access to roadside assistance through a fraternal order or other association. Even if you opt for AAA, it is likely to cost less - and provide more benefits - than the roadside assistance coverage that's tucked away in the fine print of your auto insurance policy. Go over your policy with a fine tooth comb and eliminate duplicate coverage and benefits that you won't use.
Switch Auto Insurance Companies
If your auto insurance is up for renewal, don't just blindly ante up the new premium. Car insurance companies count on the fact that most people will simply write a check, often without even comparing to see if the premium has gone up since last year. You don't have to stay with the same company when it's time to renew your insurance. Auto insurance companies routinely increase your premium year after year - but if you call them on it, they'll almost always be willing to offer you a lower price. Even better, go online and get quotes for car insurance from other companies. Most companies offer special lower prices to new customers that aren't available to their loyal customers.
Pay Your Bills On Time
One little known dirty secret in the auto insurance industry is that many auto insurers check your credit rating and will charge you higher premiums if your credit score is low. While you may see no connection between paying your credit card bill late and your driving ability, insurance companies base the premiums they charge on hundreds of variables. One of those variables suggests that drivers with lower credit scores present more risk of loss to the insurance company than those who are more responsible about paying their bills. While there's no actual "discount" for having a higher credit score, if your credit rating is good, you'll end up with lower car insurance premiums.
Invite Your Auto Insurance Company to Your Wedding
As noted, insurance companies base your insurance premiums on hundreds of factors, many of them totally unrelated to your ability to drive. That's because they use a "risk profile" of data they've assembled over the years to decide how likely it is that certain types of people will have an auto accident. Many of those factors have to do with lifestyle factors. Any time you make a major life change, call your insurance agent to review your coverage and your premium. You may end up paying a lower auto insurance premium if you get married, have a child, buy a new home or move to another neighborhood.
Shop Around
Comparing auto insurance premiums is one of the best ways to ensure that you get the best coverage at the lowest prices. Insurance premiums can vary by hundreds of dollars a year from one company to the next because they don't all use the same risk profile. Instead, each insurance company bases their premiums on their own company data. Online auto insurance quote websites make those price comparisons easy.
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About the Author
Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2011 (Mon Jan 09 2012) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com
