Auto Insurance Secrets That Can Save You Money
Auto Insurance Secrets That Can Save You Money
Auto insurance is expensive but there are ways you can get maximum coverage for an attractive price. Here are 5 things you need to know when purchasing or renewing auto insurance.
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Underwriting assigns you to a group
Auto insurance companies prefer to insure drivers they identify as low risk. Usually they will insure higher risk drivers, but when they do, they’ll charge higher premiums to offset their higher risk. Underwriting software assigns applicants to a group based on that insurer’s criteria. These groups are unique to the insurer which is why the rates you’re quoted can be so different even if you’re requesting the same type and amount of coverage. -
Coverage lapses flag you as a higher risk
Even if you’re the safest driver, if you let your insurance policy lapse because you are switching insurers or you’ve lost your job, or any other reason, future auto insurers will consider you irresponsible, and consequently, a higher risk. Once you’re flagged as a high risk applicant, you’ll pay more for your coverage. So don’t let that happen. - Increase your deductible
The more you increase your deductible, the less you’ll be charged for auto insurance coverage. This is the simplest way to lower your premium. When you pay more towards your damages, the insurance company pays less whenever you make a claim. So increase your deductible to an amount you know you can afford to pay should you ever have to. - Take advantage of discounts
Believe it or not auto insurance companies do offer discounts. You may be entitled to a discount for having a record of safe driving, for your car’s anti-theft and safety features, for making payments electronically and even for paying your premium in advance rather than in installments. - Consider optional coverage
Besides the coverage your state requires you to carry, auto insurance companies offer “optional” types of coverage. You can purchase coverage to protect you against uninsured and underinsured motorists and hit-and-run situations. Plus there’s rental car assistance, roadside help, gap coverage, comprehensive, and collision coverage. Of course, each adds to the cost of your premium, but can save you money if you ever need the type of protection the coverage provides. To be there when you need it—after all, isn’t that the whole point of having auto insurance?