Auto insurance policies contain notoriously difficult industry jargon that many drivers find confusing and difficult to understand. This article can help you to better understand all the terms that insurance agents throw at you. Knowing what the agents are talking about will help you make better choices on auto insurance.
Insurance can be expensive and confusing
"Your rates have increased and you're no longer receiving those usual discounts."
Understanding Low Mileage Discount
The less you use your car, the lower your insurance rates will be. If you can take the bus or train or ride your bicycle to work every day instead of driving, your insurance company may give you a low-mileage discount. This, and the fact that you will be spending so much less on gas, will save you lots of money every year.
Check What Policy Bundle is Being Offered
You should always make sure to tweak your auto insurance policy in order to save money. When you receive a quote, you are receiving the insurer's suggested insurance bundle. You should go through the policy yourself and remove coverage you won't need. Just taking this extra step can save you a bundle of cash every year.
Young Drivers Take Note
If you are a young driver looking to purchase an auto insurance policy but do not want to pay an arm and a leg, a great step you can take is to get an older driver to share the insurance with you. Much like having someone with good credit co-sign a loan with you, having an older, experienced driver on your insurance will bring your payments down.
Low Insurance Risk Category
Car insurance costs can be reduced if you know what you're doing. Make sure that your car falls into the low risk category, you add a spouse when you can, tell the insurance company that you have children, and keep a clean driving record. If you are over 25 years old your premiums will go down as well.
Own a Classic Car?
If you own a classic or a car that is otherwise desirable in some way, think about joining an automobile club. Many motoring clubs offer perks for joining e.g. discounts on auto insurance premiums. However, be sure to look at the comparative cost savings of joining a Club and the potential savings you'll make in car insurance.
If your car is considered a classic vehicle, you can get what is known as classic car insurance. This is often far less expensive than traditional insurance. However, if your car has a current high value, you'll want to insure it for enough in order to replace it should it get wrecked or stolen.
Find out all of the available discounts that your insurance provider offers. There may be some discounts available that you did not know about when you opened your policy. You may have to take a driver's course of some kind but it will increase your driving skills and reduce your premiums.
Keep car insurance in mind when buying a new car. Different cars have different premiums. You might have your heart set on an SUV, but you might want to check just how much it is going to cost to insure before you spend money on it. Always do your insurance research before buying a new vehicle.
The Importance of Your Credit Report (FICO)
A value tip to know is the importance of your your credit report (FICO). Many companies are looking at your credit history and score as a factor in deciding what to charge you for car insurance. If your score is low side, to steps today to see if you can't improve it since you now know that it will have a positive impact on your premiums.
Young Driver Auto Insurance
If there is a teenager in the household, get 2 quotes – one where the young driver is quoted on your policy and another quote on his own standalone policy. How much additional premium your insurer quotes you for adding him or her to your policy will depend on a number of factors such as the type and number of cars already on your policy.
As expensive as adding your teen driver to your auto insurance policy can be, it may be worth it in the long run, as it will help him or her to begin building up a good credit history. And if they are a good driver with a clean driving record, when it comes time for getting their own insurance, their insurance rates will be much lower than someone without that history.
To save money on your car insurance, choose a car make and model that does not have a high insurance rating. For example, safe cars like a Honda Accord are much cheaper to insure than higher performance vehicles and sports cars.
An interesting image relating to auto insurance called Rally Car – Free Pictures
Rally Car – Free Pictures
"Rally Sports Cars"
It should go without saying that if you're looking for cheaper insurance you should think about having a less-sporty car. High performance motors are more expensive to insurance as they tend to be expensive, can be dangerous to drive for the less experienced and are high targets for thieves.
Hopefully, this article is of help to you and given you a better understanding of auto insurance. You should also now have more confidence in chooses a policy that is right for you. Having a better understanding of your choices is a good way to gain more confidence to make the right purchasing decision.