It was not too long ago when contracts were made on a handshake
and a promise. Individuals were not particularly concerned with
things like insurance because they relied upon the goodwill of
their neighbor to compensate them for wrongful damage. For a
variety of reasons, including an increase in the speed and cost
of auto wrecks, auto insurance soon became an important purchase
for responsible individuals. Not long after, the federal
government mandated that auto insurance be carried, at least
minimally, by all car owners. The increase in the need for auto
insurance over the last 10 years has led to increases in the
complexity of insurance, while at the same time, amplifying the
need to be more cost conscious in auto insurance purchases.
Buying auto insurance today requires as much dexterity as
buying the automobile itself. It is important to know the
factors that an auto insurance company considers when offering
quotes. This will allow you, as the consumer, to know what steps
you need to take in order to qualify for a lower quote. The five
easy steps to a lower insurance quote are:
1. Portray yourself as a 'safe' candidate: Insurance companies
are interested in managing risk. Consequently they offer drivers
who are less likely to get into wrecks or at a minimum into
wrecks of less severity, a lower insurance quote.
-Maintain a clean driving record, free of traffic violations or
accident claims.
-Install anti-theft devices in your vehicle.
-Attend a Drivers Safety Training program.
-Buy a 'safe' vehicle. The National Highway Traffic Safety
Administration (NHTSA) and The Insurance Institute for Highway
Safety together collect information on safety related aspects of
different vehicles. Buy an automobile that is officially
designated as 'safe'.
-Park your vehicle in a garage.
2. Show your Credit worthiness: As a risk management entity,
insurance companies are also worried about getting paid on time.
If you can show yourself to be credit worthy, there is less risk
of you not making your payments on time, thus warranting a lower
rate.
-Maintain a good credit score and clear up any errors on your
credit.
-Cut down on the total number of outstanding credit cards to 2
or 3.
3. Practice Financial Wisdom: The way in which you structure
and pay for your policy can lower the risk that an insurance
company faces with respect to you as a customer. By taking steps
to lower their risk, you receive a lower insurance quote and
policy.
-Buy an annual policy instead of a six monthly coverage to get
you a lower rate that remains the same for a year.
-Opt for automatic payment deductions from your bank account or
your credit card to avoid getting charged for mail payments.
-Increase your deductibles on comprehensive and collision
policies to reduce on the rates.
-Get loyalty discounts by buying your home and auto insurance
from the same company.
4. Assess your Insurance Needs accurately: This is obvious, the
more coverage you get the more it will cost you. Add-ons are
killers in the insurance business, strip your policy down to
just the minimum of what you need.
-If your vehicle is not used much or you have an old car with
little market value, opt for minimum liability alone. It will
cost you less.
-After fulfilling the legal mandate on auto insurance, insure
according to your needs alone.
5. Other wise things that you can do: There are a number of
other considerations that go into your insurance quote. Some of
them are not reasonable steps to take, while others you can do
with little effort which can translate into substantial savings.
-If your car is used only for a particular purpose, make your
agent aware of it, as this will limit the cost.
-Students that make good grades are often eligible for a
discount.
-Give up smoking; it can help you get better quotes.
-Change your occupation if you can help. A delivery boy carries
a higher risk than a storekeeper.
About the author:
Sam Caldrone recommends that you visit
http://www.smartautoinsurance.com for more information on
getting an
auto
insurance quote.
