A Few Tips to Lower Your Insurance Cost

A Few Tips to Lower Your Insurance Cost


There are lots of ways to obtain very cheap auto insurance while still getting great coverage. Here are a few you might not know about:


Switch companies. Insurers want your business and will often offer discounted rates to steal you away from a competitor. When seeking rate quotes, be sure to mention the insurance company you are currently with. Stoking the competitive juices among insurers can work in your favor.


New cars can be cheaper to insure. Some insurers offer new car discounts which can often save you a lot of money. Of course, it depends on what kind of car you buy. A flashy sports car with a huge engine will cost a lot more than a Honda Civic. A car that gets stolen a lot will require higher rates. You may want to check the Highway Loss Data Institute’s theft loss list before buying your next car. Even similar car models can have substantially different rates. Also be sure to get anti-theft devices installed on your car as this help you get very cheap auto insurance.


Bundle your policies. The more business you give an insurer, the better rates you are likely to get. Having your homeowners insurance with the same company that provides your auto insurance can get you a great quote.


Different rates for different areas. Often city dwellers will pay more for car insurance than folks who live in rural areas due to the traffic congestion and higher likelihood of accidents in dense urban areas. Some insurance companies focus on urban areas and will offer better rates, so it really pays to compare quotes from multiple insurers if you live in a city.


Check your insurance company. No matter how good a rate you may be getting, very cheap auto insurance is not worth it unless the company is stable and will be there in the event of an accident. You can check on the financial strength of an insurer by going to rating companies like Standard & Poors or Fitch Ratings. These rating companies look at al aspects of an insurer’s financial condition and provide a grade for all major insurers. A quick check on the financial stability of your insurance company can save you a lot of heartache down the line.


Boost your credit score. To the extent possible, you should do everything in your power to get your credit score as high as possible before shopping around for a new policy. Carriers have found that drivers with poor credit record have a tendency to file more claims, costing the insurer more money. Carriers tend to reward drivers with good credit scores with lower rates, so be sure to review your credit report and clear up any problems before you start your rate compariso