Tips

Tips to Save on Auto Insurance
#1 – The Right Car
The class and even model of vehicle you buy can make a big difference in your car insurance rate. The important factors to look at before buying are:
• Safety
• Theft
• Price to repair
• Price to replace

Here’s how to use these principles when searching for a new car
Step 1: Check the vehicle safety awards. The winners will be the cheapest, but any finalist is good.
Step 2: Select the class of vehicle you would like: Sedan, Sports car, SUV, etc.
Step 3: Pick a few models that you would like. If you are very concerned about price, avoid luxury vehicles like BMWs, Mercedes, Lexus, etc. Go for the high-value vehicles (e.g., Kia and Saturn) and find ones you like.
Step 4: If you are caught between a foreign vehicle and a domestic product that are a similar price, check the repair costs. As a rule of thumb, domestic products are easier to service. Foreign luxury vehicles are infamously expensive to repair, parts and service.
Step 5: Get a quote for that vehicle. Online auto insurance quotes are quick and effective for getting a reliable estimate. Do this for a few vehicles you are considering.
***Economic vehicles aren’t necessarily stolen less often, but they are inexpensive to replace.***
***Used isn’t always cheaper to insure. New vehicles are much much safer.***

2 — Improve Credit Score
Auto insurance providers believe that credit score is a good indicator of risk. People with low credit scores pay more while people with high credit scores pay a lot less for auto insurance.
Step 1: Get a copy of your credit report. Credit score companies must give you a free copy each year. Get your free one from the trustworthy AnnualCreditReport.com.
Step 2: Clear up any errors in the report. Investigating debt is free as well.
Step 3: Pay your credit cards down to 1/3 of the limit for a big score boost.
***Remember, the longer a credit card is active, the better your credit—so long as you make your payments.***

3 — No Double Coverage
Double coverage is the biggest, most common mistake on auto insurance policies. It is just a waste of money. Double coverage occurs when two or more things cover the same problem.
For instance, if you and your family have very good Health Insurance, there is very little need for Medical coverage on your car insurance policy.
If you have Comprehensive Other Than Collision coverage, you do not need to buy Theft coverage. You can prevent double coverage by knowing your policy very well. Go over it with a government advocate or an agent.

4 — Location, Location, Location
Some coverage is more necessary in certain regions. Comprehensive Other Than Collision coverage is great if your area experiences regular flooding, hale, or tornadoes. Perhaps there are a lot of animals on the road. This might cover deer and raccoon damage as well.
Do you live or work in an urban or rural area? This makes a difference on auto insurance premiums because of collision and theft rates. The lower the population density, the better your car insurance rates will be.

5 — Extra Features and Paying Up Front for Long-term Savings
Spend the money on safety features when you get your car. Alarms and tracking devices are inexpensive but will save you hundreds a year. Even paying for covered parking or a garage will pay off fairly quickly.


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