Many people complain about the increasing cost of auto insurance with every passing year. We do not know those steps which can help in reducing your auto insurance cost to some extent. Let us have a look at those steps at a glance.
- Punch your auto insurance cost to the cost of auto purchase – If you can include your auto insurance cost to the cost of auto purchase, you can incorporate it into the monthly EMI. This can happen if you are buying the vehicle by a loan.
- Do some research on auto insurance rates – Before buying the car, do some research on auto insurance on the model and make of the car. The insurance premium is high on high-risk vehicles, while it is lower on vehicles which are of low risk. So, if you buy a low-risk vehicle, the insurance premium will be lower because of chances of theft is low.
- Getting a quote from different auto insurance agencies – Once you have decided on the model and make of the car which you are willing to buy, you can start speaking to various auto insurance agencies. Get at least three quotes from various agencies and make a comparison among them. See providing the same services and deductibles, which agency is offering the best minimum quote. You will be surprised to see that quote from one agency to other varies by a few hundreds of dollars.
There are some websites who does all the legwork for you. Just visit those websites and you will find a chart offering quotes from various agencies. Follow a few charts and you will be able to decide on the discounted quote quite easily.
- Raise your deductibles – Ask the insurer to increase the collision and comprehensive part of the insurance policy. This will help to reduce the insurance premium to a great extent. Just keep in mind that in case any accident happens and you go to file a claim, you will have to pay the deductibles out of your own pocket. Accident happens once in a lifetime and it is not an everyday matter. So just be prepared to pay that amount and your annual burden will go down to a great extent.
- Buy home and auto insurance from the same company – If you have a home, just ensure to have your home and auto insurance done from the same insurer. Many insurance companies offer a further discount of 10% just to get the business of your home insurance. You will get the benefit in both the insurance policies.
- Insure all your cars with the same company – If you have more than one car, ensure to get them insured with the same company. Likewise, you will get a further discount with multiple cars.
- Ask for a low mileage discount – If you use public transport more than your car and prefer to keep your car mileage as low as possible, you can ask for a low mileage discount to the insurer. You may get a further 10%.