What Factors influence Insurance Prices, and ten methods
for Saving Money on Car Insurance
You should carefully consider not only the types of insurance
coverage you want on you vehicle, but also the costs involved.
After researching the information available online, a conclusion
on the range of coverage desired can be reasonably made. In
order to secure a thorough and economical automobile insurance
policy, following certain guidelines can be extremely helpful.
The following are a list of methods to reduce insurance costs:
1) Shopping multiple insurance companies.
As discussed in the guide "Leveraging
online auto pricing services for the best prices",
shopping for insurance takes this method one step further.
When shopping for a car, the auto sites send you a quote from
only one dealer in your area. When shopping for insurance
however, they provide quotes from several sources all from
one web site. The best insurance services online are iNSWEB
, , 
Nationwide
Insurance, and the Canadian source, Kanetix .
Submitting a quote from each insurance service will provide
you with many very low insurance quotes for each vehicle you
are researching in less than an hour. You will have little
doubt what your actual costs are because they will be delivered
to your email box. This method will provide you with the absolute
lowest insurance premium in less than an hour instead of weeks
to accomplish the same task offline. To get an idea of potential
savings, get a free quote from one of the services for your
existing vehicle. Notice any difference in price. (So far
I have never heard anyone complain that these services offered
a higher price.) These companies do all the leg work for you!
2) The type of car or truck you buy
The next key factor in reducing the costs of insurance is
selecting a vehicle that will generate lower premiums. Traditionally,
sports cars usually hike the price of insurance up significantly,
as statistics have shown that these vehicles tend to become
involved not only in a greater number of collisions but also
of much more severity. Luxury cars and SUV's are also associated
with higher insurance costs, as they are more expensive to
repair or replace. Vehicles that are more prone to being stolen
put the price tag up as well. Certain features can raise premiums,
such as a convertible top, sunroof, moonroof, T-Top, four-wheel
drive, high performance and turbo engines, and upscale audio
systems. When purchasing a vehicle that may fall into any
of these criteria, you should implement the cost of automobile
insurance into your budget to avoid financial repercussions.
3) Choose a vehicle with lots of safety features
Remaining on the subject of the vehicle itself, insurance
companies often offer a reduction in premiums for vehicles
that are equipped with numerous safety features. Vehicles
with driver side air bag, passenger side air bag, side impact
air bags, automatic seatbelts, ABS brakes, traction control,
and sometimes even fog lights will qualify you for savings.
These features are proven to decrease the severity of collisions
and save lives, making the vehicle less of a potential liability
for insurance companies to take on. Larger vehicles are included
in this as well, as bigger cars provide more protection for
passengers in the case of an accident.
4) Changing your driving habits
Discounts can be obtained for drivers who put fewer miles
on their vehicles every year. Since this obviously means that
the car will be on the road less, the insurance company will
consider the vehicle to be a lower insurance risk. Consumers
who have signed onto a lease or financing program are excellent
candidates for a decrease in premiums, as there is usually
a limit put on the number of miles that can be incurred on
the vehicle each year. You may also consider a driving pool
to keep milliage down.
5) Acquiring a membership with an emergency road service
Acquiring a membership with an emergency road service or
club apart from the insurance company is a great way to make
direct savings. Along with the money saved, most of these
emergency services do not report claims to a bureau, thereby
keeping a driver's claim reports clean and protecting them
from having their insurance policies cancelled or from being
denied for a new policy.
6) The location in which you reside
The location in which you reside is another key factor in
determining the costs of automobile insurance. If you are
moving from a rural area to a major city, you can expect your
insurance rates to skyrocket due to higher statistics for
accidents, theft, and vandalism. If finances are an issue,
you should inquire as to the severity of the increase and
should reconsider the type of vehicle you are currently driving
or wish to purchase in the future at the new location. In
addition, if you have a cottage in the country you can register
the car at that address and save money because it is in the
country.
7) Combine all of your insurance with one company
Insurance companies will often offer discounts for clients
who insure more than one vehicle with them or have other forms
of insurance through them, such as homeowners insurance. They
may even take into consideration discounts for mobile homeowners
insurance, major credit cards and other criteria in addition
to rewards for commendable driving records. You should be
able to save anywhere up to twenty-five percent for multi-line
insurance policies and good standing. (Visit iNSWEB
, ,
Nationwide
Insurance, and the Canadian source, Kanetix..)
8) Consider dropping you collision and/or comprehensive
insurance on older vehicles
In the case of older vehicles, owners should consider dropping
their collision and/or comprehensive insurance to save money
if the vehicle is not valued at more than one thousand dollars.
In the end, the amount of money the consumer pays now for
such coverage in an insurance policy is probably more than
the cost of any future claim. The sum of the premium plus
the deductible would cost more than the actual value of the
vehicle in question.
9) Opt for higher deductibles
Another way to save cash is to opt for higher deductibles,
reducing an individual's premiums by up to one-third the cost.
The deductible is the amount of money the client pays for
damage, and the insurance carrier covers the remainder. Consumers
should bear in mind that although they are saving on premiums,
if they ever do have to make a claim they will be paying more
for the damage since the insurance company will be paying
less.
10) Taking driving courses, installing extra safety features,
& senior discounts
After having considered the tips outlined above, you can
still undertake to obtain further discounts. You may be rewarded
for taking driving courses, and drivers over the age of fifty
can often get discounts. Installing extra safety features
can also contribute to lowering the cost of insurance. With
the right combination of research, careful consideration,
and the appropriate vehicle, you can stand to save a lot of
money on automobile insurance.
Tip: In general, you are advised to research a variety of
sources before committing to a specific automobile insurance
policy with an insurance carrier. Determine the costs of insuring
the vehicle in question before buying it, as an alternative
choice might have to be made if the premiums are too high
for the person to accommodate financially. Along this line,
consider a vehicle that has many safety features and anti-theft
devices, and inquire into other discounts that may be granted
for criteria such as driving classes, age, non-smoking status,
and even commendable grades for students. Consider utilizing
public transit to decrease total driving mileage, which may
assist in reducing premiums. Try to keep all insurance policies
under the roof of one carrier, as they will often offer a
multi-policy discount. Ensure that the policy limits cover
all the drivers in the household, and that the limits are
not so low to leave the individual open to lawsuits and financial
ruin. Raising the deductible on the amount the individual
self-insures by a total of $200-$500 will decrease the Collision/Comprehensive
price tag by up to one-third. If you use these tips and do
your homework before taking the plunge, you will get the most
complete coverage without putting a dent in your bank account.
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