Finding
the best auto insurance rates can sometimes be tricky. It is absolutely
necessary to be insured on the roads, though. In fact, it is required, by
Illinois state law to have coverage. Some find auto insurance to be
extremely expensive but, there are ways to help make it more affordable. Here
are some things to consider to find the ideal price of insurance.
Shop Around
Get
quotes from multiple insurance companies, including different types of
companies. Also, realize that the lowest number does not mean the cheapest.
Consider Insurance While Shopping for Cars
Some
vehicles have lower reliability ratings and other factors that contribute to
higher premiums. While researching cars it is important to compare potential
premiums for each of your options to ensure you are getting the best deal.
Increase Deductible
By
increasing your deductible, you can decrease your premium. Just be sure that
the deductible is manageable for your budget and that you have enough money
saved in case you need to file a claim.
Bundle Insurance
If
the insurance agency that you choose offers bundling, take advantage of it. If
not, try to stay with the same company for all of your insurance needs. This
results in discounts in most cases.
Keep Good Credit
Having
good credit helps lower insurance rates. Researchers have found a significant
relationship between your credit score and amount of claims filed. Insurance
companies tend to rely on this correlation to define your financial
responsibility.
Low Mileage Discounts
Research
mileage averages and see if you fall below that. Do not be afraid to ask about
a low mileage discount. This discount could also apply to you if you are
someone who carpools.
Group Insurance
Some
people fall into the category of people who receive insurance from their
employer or other groups they belong to. Some insurance providers offer
discounts on auto insurance to people who fall into this category.
Other Discounts
Ask
your agent if there are any additional discounts you are qualified for based on
certain qualities such as how you drive, etc.
Purchase 10+ days before you actually need it
By
purchasing coverage before you need to use it helps drive down premium costs.
Pay in Full Up Front
If
possible pay in full, rather than setting up a payment plan. The amount you
save annually will add up.
Get New Policy When You Move
Especially
out of state! Some states have significantly higher insurance rates than
others.
Older Cars
Buying
a brand new car, just released is exciting, but if your priority is lower
insurance premiums it is better to purchase models that are 5+ years old. They
are considered more reliable.
VIN Number for Quotes
The
purpose of this is to see if you are eligible for a discount if you have
anti-theft devices.
Go Paperless
Some
companies value using less paper and offer a small discount to those who opt
out of using paper which is not hard to do in this age if technology. It is a
small offering, but it adds up.
Insurance Vocabulary
Be
sure to understand what the verbiage means so that you have a good idea of what
you actually need covered and what questions you need to ask your agent.
Automatic Billing
This
is another way to save over time, similar to going paperless.
Education
Some
insurers offer discounts based off of the level of education you have. For
example, some offer discounts for college graduates.
Teen Drivers
Teen
drivers are known to drive up insurance costs, since they are more accident
prone. But, if they are in a college that is 100+ miles away without a car some
insurers allow them to be temporarily taken off of the plan. Additionally, most
companies offer a "good student" discount implying that they
correlate this test of intelligence with responsible driving habits. Proof of a
safe driving class can also save some money on teen auto insurance.
Change Insurance When Lifestyle Changes
If
you expect to drive less due to retirement or other factors, report this to
your insurer. This can reduce the amount that you have to pay for insurance.
Most
importantly, be aware of your needs and form a relationship with your insurance
agent. Awareness is the first step towards savings.
Article Source: http://EzineArticles.com/10004312
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