subject: How To Lower Your Insurance Premiums [print this page] This article has been written to assist you with learning some of the key points to lowering you auto insurance premiums. You are probably like me; you just pay whatever the agent behind the desk says you are supposed to pay, while at the same time thinking that this seems too high. So you ask your new best friend "the agent" how can I lower my premiums, and then in fine style he hands you some highly trained and thought out description of how you will be paying the lowest rates available. Well let me tell you that this is all a ploy to convince you that he has your best interest at heart. I have studied the keys points to auto insurance. As a result of this studying, I am bringing you these points you should consider before you attempt to purchase auto insurance.
Deductible: The definition of "Deductible" equals to the amount of money that you will have to pay out of pocket if you were to have an accident, and subsequently had to make a claim, maybe for reasons beyond your control and of no fault of your own. Provided you can afford it a higher deductible equals lower rates, when you choose to take on a higher deductible it lessens the cost for the insurance company. I know you're thinking why would I want to pay more for less coverage, when in reality your coverage is still the same, but when you make the company foot more of the bill they make you pay for it. A good practice in this case is to take the difference you'd be saving and set it aside in a savings account or cookie jar whichever you choose, which in turn lessens amount out of pocket expenses you will have to pay. Everyone would like to have a zero deductible, but in reality this is a mistake, actually I don't even think that they will let you do this anymore.
Discounts: There are many discounts available when it comes to auto insurance, and your best friend "agent" may not tell you about them. In short it makes more money for the company if your agent is slick enough to keep you from noticing that you still have discounts that you qualify for but your agent has failed to inform you of. Listed below you will find a common list of discounts. Multi-Car, Home/Auto combo policies, Student, Military/Reserve, Good Driver/Safe Driver, there is most times even a discount for students who have grades in the A/B/AB honor roll statuses.
Contrary to the belief of your grand-father, the days of getting a discount for being a long standing, good paying customer, ARE OVER. The smart consumers of today shop around.
Online Auto Insurance: The latest trends in auto insurance policies and quotes, takes full advantage of the power of the internet. There are companies who operate solely online, once you pay for your policy you go right to the next page and print your ID cards. These companies would most likely sound like a scam to a seasoned professional who has been going to the local office and dealing with the same agents for 30 years. However most often they have the cheapest rates, due to overhead. They have a substantially lower number of employees, which costs them less in benefits and insurances, which equals deep discounts for YOU.
by: David Grady
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