Auto insurance is one of the costlier aspects of having a vehicle. Whenever possible, you'll want to pay no more than necessary for a policy. How do you get a lower rate, though? Try the following seven things to see if you can reduce your rate.
Insurance companies love to spread out risk. A customer who's insuring multiple vehicles instead of just one will pay less on a per-vehicle basis. Likewise, many insurers allow you to bundle other forms of coverage, such as homeowners or business insurance.
The deductible is the portion of a claim you have to pay out of pocket. If the insurance company knows you'll pay more when something bad happens, they'll offer a lower premium. Bear in mind, though, that you need to have the money to cover the deductible. Never carry a deductible that's bigger than your rainy-day fund.
Discuss the Basis for a Quote
Whenever you get a quote, ask the insurance agent what's driving it up. You might find out, for example, that there's an at-fault accident listed on your record that you weren't responsible for. If there are errors, ask the agent to correct them.
Get a Boring Car
Insurers have to consider the risks associated with any particular vehicle. If someone is driving a bright-red sports car, the insurance company knows it costs more to replace. Likewise, the insurance company can look at the accident rate for similar vehicles. If you want low rates, research which cars get in the fewest accidents and buy one of them.
Request a Review
You can ask your agent to review your account if it has been a while since you last went over your rates. If your vehicle depreciates in value, that should reduce your auto insurance rate. The only way to be sure, though, is to conduct an annual review.
If you're unhappy with your insurance rate, it's worth shopping around. Contact other companies and ask them for quotes. In fact, your agent will often have access to policies from different providers so you can compare. You can then choose the policy that saves you the most money.
There is a line at which cheap insurance is bad. For example, it's usually unwise to take coverage off your policy. Otherwise, there's a risk that you'll have to replace your ride if you're at fault in an accident or involved in a one-vehicle incident.
Contact an auto insurance agency like Del Toro Insurance to learn more.