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Five Tips to Lower Your Auto Insurance Premiums

By Compuquotes Team on May 1st, 2008

Are you paying too much for your auto insurance? Nearly everyone can probably shave a few dollars of their insurance premium by using a few common sense tips and suggestions. Here are five things you can do to ensure that you are paying the lowest possible premium for your automobile insurance.

1.Drop comprehensive coverage from your auto insurance.

If your car is older and you've finished paying it off, do a few calculations to decide if you really need to continue paying for comprehensive coverage. Most experts recommend that if you are paying a premium that is more than 10% of the current market value of your automobile, you really don't need comprehensive insurance.

Keep your comprehensive coverage if:

  • you are still paying off your car
  • the cost of your premium is less than 10% the value of your car
  • you live or work in a high crime area where car theft is a risk
  • you drive a car that is a popular target of car thieves

2.Car pool to work.

Insurers realize that the more miles your car is driven, the higher is the risk of an auto accident. By reducing the number of miles you drive back and forth to work, you'll reduce your risk of accident, and your premium will also drop.

If you're not a car pooler, consider taking public transport to work at least a few days a week. The idea is to reduce the miles your car is on the road each year. The fewer miles you drive, the less premium you'll pay.

3.Compare insurance premiums and policies before you buy.

Most people spend weeks researching the car they want to buy, but less than fifteen minutes choosing their auto insurance carrier. Even in states where insurance rates are regulated, you can realize substantial savings by shopping around for the best policy for your needs. A price comparison site that lets you get real time quotes for your auto insurance policy is a great tool to check your policy against other comparable policies.

4.Buy your auto insurance through the same company that insures your home.

It's not a tried and true fact, but you may get a bargain if you use the same insurer for your home and auto insurance, especially if you work through the same broker or agent. In many cases, your agent may be willing to take a slight cut in commission to keep your business.

5.Review your auto insurance annually, and compare rates again before renewing.

It doesn't take long to check premiums at a few other insurers once a year, but few people can be bothered. Insurers count on that inertia to keep customers from jumping ship over small rises in premium prices. When your renewal arrives, take the time to get quotes for the same coverage at other insurers. You may find that you can get better prices through another insurer - and even keep your good driver discount from your old insurer - when you jump ship.

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