With auto insurance rates continuing to rise while money becomes a scarce commodity, getting the most out of your auto insurance policy while paying an affordable rate is a tricky balancing act. Fortunately, the Internet offers a wealth of money-saving information and serious shopping leverage to help you accomplish just that. We no longer need to rely on insurance agents to be our only source of guidance and insurance information, but choosing the right one can make all the difference.
Whether you are shopping for your first auto insurance policy or are planning to renew an existing one, now is the time to learn how auto insurance companies calculate your rates and what you can do to lower them, while still getting the best coverage. The cost of your insurance policy is based on a variety of factors, over which you have some control. You already know that the type of car you drive has a bearing on your premium, but locating the insurer who honors certain discounts and offers a variety of policies will be worth your effort.
A few insurers are offering a healthy discount on your rates for installing the LoJack Stolen Vehicle Recovery System, which enables law enforcement to more easily recover your car when it is stolen, perhaps before it is dismantled in a chop shop. So, not only do you get your car back intact, but the 30 percent off your premium is the icing on the cake.
When shopping for an insurer, determine how much he relies on credit scores in setting rates. It is becoming more important to optimize your credit rating due to the fact that it can be used to determine your level of risk by auto and home insurers. You can benefit from a healthy credit rating in terms of reduced premiums and more favorable interest rates on loans. Checking your credit report regularly can help you identify and repair errors before they attract the attention of your insurers.
Stick with insurers who freely volunteer information about how to qualify for other discounts, such as ones for good students, safe drivers, and low mileage. Your driving record can be erased of minor flaws by attending a driver safety course, and older drivers can lower their rates by taking advantage of defensive driving courses. Sometimes piggybacking your auto insurance with your homeowner policy can merit a discount.
Your insurer will be happy to write a policy which satisfies the minimum coverage required in your state. This may not be enough however, in today's society. Think of the cost of a simple ambulance ride to the Emergency Room, in addition to the cost of treating multiple injuries. Many insurers are recommending taking out more coverage than the state minimum.
Natural disasters and other "Acts of God" may not be covered by your basic Personal Liability and Property Damage types of policies. Living in the flood plain of the Mississippi River or the Tenderloin District of San Francisco brings a different set of risks that can be just as costly to repair as being in an accident. Drivers are at risk of floods, fires, vandalism, theft, and other causes of damage and loss to their vehicles. It is for these risks that a more robust form of auto insurance is available called Comprehensive Auto Insurance. It will cover loss for other damage than is caused by collisions. By shopping for insurers who offer the best discounts, comparing their rates, and obtaining only the coverage that you need, you will be getting the best insurance value for your money.