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Top Ways to Save on Auto Insurance

By Compuquotes Team on March 27th, 2008

Auto Insurance

Car accidents happen, and we all suffer for them in auto insurance. Maybe you always wear your seatbelt, never drink and drive, and always go the speed limit, but you still aren't exempt from high insurance costs.

Over a ten year period the average American household will spend $8,900 on auto insurance. However the average household will file just one claim, with an average of only $600.

Many times we overpay on insurance because our agent doesn't give us the whole picture. Most people simply take the agents word for something and don't double check to make sure it is necessary. The higher your insurance premium is, the bigger your agent's paycheck. In fact agents typically earn between 10 and 15 percent commission on your policies.

There are plenty of ways to help cut the cost of your auto insurance without being forced to lower your coverage.

Safety features can safe you 5 percent or more on your auto insurance depending on which company you select. Mention air bags, anti-theft systems, anti-lock breaks, or any other safety features your vehicle includes. Many companies with provide you with a list of discount items. If your agent doesn't offer these don't be afraid to ask them to provide you with such discounted items.

If you have a spotless driving record, chances are the only communication you have with your insurance company is your monthly statements. Unfortunately your silence could be costs you precious money. It can take up to three years for a parking violation or speeding ticket to be removed from your driving record, but when it does that could mean a savings of 10 percent or more.

What you are driving obviously has a huge impact on your insurance premiums. A fast sports car doesn't really paint the idea of a safety-conscious family. Sports cars have been more expensive to ensure, sometimes as much as 20 percent. They have such higher insurance coverage costs because they are a favorite target for thieves, and tend to have younger drivers.

If you are keeping your insurance premiums in mind when buying a new car, remember to stick to bigger family sedans and wagons. These cars are favored by family oriented people, who are viewed by the insurance companies as safer drivers.

The most expensive part of your car insurance premium is your collision coverage. You can save one-third and reduce your collision payment, by raising your deductible. The common deductible on collision is $250. If you decided to increase your deductible to $500 you will reduce your collision premium. With the high prices of most vehicles and their repair, almost any damage done to a vehicle is likely to cost more than $500.

Insurance companies allow you to pay your premiums monthly, quarterly, twice a year, or in one lump some. The more often you pay the more money you are paying because extra dollars are added on as interest. By paying all at once you can save interest costs, as well as possible discounts.

See average annual insurance rates for more than 2,000 vehicles

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