HOW TO: Lower Your Auto Insurance
Posted on July 12, 2007
Ever since I got my first car at about 17 I have hated paying auto insurance. My insurance rates were really low until I was 21 and got into two accidents in a span of six months. The first accident I hit a small sign when I hydroplaned in the rain doing only minor damage to my car, and the second accident I rear-ended someone totaling my car while doing little damage to her car. Needless to say my insurance went up about 25% as a result. I was lucky it only went up by 25%. Since then I have had no accidents and a couple of tickets that I went to the driver education course for so my insurance has went down significantly and I’m probably back where I should be for a safe driver my age. However, it can happen quickly that you find yourself with high insurance due to some bad luck. Here are some solid ways to get your auto insurance down:
- Drive safely. This is an obvious one but I feel the need to mention it. It is probably one of the single biggest factors in lowering your rates.
- Pick a “low-risk” car. At the very least call your insurance company and ask the rates prior to purchasing the new car so you are not caught off guard. Insurance companies collect tons of data on the cars that are stolen less often or are harder to damage. Do a little research for yourself the Insurance Institute for Highway Safety. The top safety picks for cars can be found here.
- Limit your driving. Reduce your work commute distance and that often lowers your premium, as does taking public transportation or car pooling.
- Insure both cars with the same company. If you are in a family with two cars make sure they are on the same plan as most insurance companies will give a small discount for multiple vehicles.
- Use same company for all your insurance needs. This goes along with the previous post but you almost always get a better deal if homeowners, auto, life, and any other insurance needs are serviced by one company. This is not always true so be sure to way your options.
- Move to a low risk area. The average annual expenditure for drivers in Florida in 2004 on auto insurance was $1017.96, while for a state like Iowa it was only $580.54. That is a significant savings if you can deal with Iowa. Living in Florida that would be a tough transition for me.
There are many factors that are out of your control for your auto insurance cost such as age and gender, but many times a clean driving record and a safe car can go along way to improving your rates. For more information check out the Insurance Information Institute website.
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