How To Get Car Insurance at Lower Premiums

As we continue experiencing economic recession, it's wise to find out ways to cut down unnecessary cost, no matter how little it may be. Let's focus here on how to lower your premiums for your car insurance:

Do research.  Start by getting to know the lingo. For example, what are premiums, by the way? The premium is the amount of regular payments you will be charged for active coverage by the insurance company. Remember, if you know your lingo you'd be able to communicate better with the insurance agent and you could ask savvy, in-the-know questions that could get you the low premium that you want.

Shop around and compare prices. Use the Internet to gain an idea as to what the mode and range is for auto insurance premiums. Once you've familiarized yourself with this, create a final list of insurance companies you'd like to look into, and then talk to an authorized agent for more specific details.

Be aware of how premiums can be set.  This could depend on several factors, such as your age (rule of thumb: older drivers pay less), where you live, the deductible you choose, the discounts you are eligible for (for example, those in the military may be entitled to discounts; also, young drivers may take advantage of "Good Student Discounts" if they get good enough grades in school).

Another big factor is the type of car you drive. If you're still in the process of determining which car to purchase, this could especially be helpful for you. Remember that insurance companies have statistical data on how attractive a certain car model is to thieves, or how much at risk a car is to accidents. To illustrate, a sedan would definitely have lower insurance premiums than say, a sports car (which is usually driven much faster) or a BMW (prone to thievery). You could request the insurance company for a comparative list of premium rates for each car model you're interested in purchasing.

It's a good idea to install safety devices to your car: air bags, brake locks, automatic seatbelts, car alarms, anti-theft systems.  Remember, the key here is to let the insurance company perceive you to be less likely to get into an accident.

Keep good, clean records.  Have lower traffic violations, keep your car at a low mileage (good for the environment too), and maintain a good credit history. These factors make you a prime customer, or in other words, a careful driver and trustworthy person unlikely to get into a car accident (which is good for everyone).

Look into plans that could further lower your premiums. For example, you could opt to obtain auto insurance from the same company that insures your house. Or, if you have more than one car, you could look into plans for multiple insurance coverage on two or more cars.

Look into obtaining lower coverage based on your actual needs. For example, it's impractical to apply for a very high coverage (thus, higher premiums) on a relatively old car that you just drive a few kilometers to and from work each day.

You could also opt to pay for your insurance with bigger installments. Usually paying in bulk costs less, plus you could avoid any hidden fees that could come with paying smaller amounts. Also, you have a bigger tendency to miss out on payments the more frequently you have to shell out money.

These are just some ways to avoid spending bigger bucks on your auto insurance. The key is always to be practical and relatively knowledgeable so that you'd be able to save money even in these hard times.


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