Auto insurance is mandatory in almost all states, but even without it, drivers are still financially responsible for their vehicles. This article is part 1 of 2 parts, and will provide some helpful tips for cheap auto insurance.
20 Tips for Cheap Auto Insurance:
1) Some states require that insurance companies provide discounts to drivers who complete a defensive driving course. The courses are inexpensive and take about 8 hours to complete, but can result in a 10% discount for up to 3 years. Many companies offer the discount voluntarily.
2) Customer loyalty discounts are offered to policyholders who buy more than one type of policy from the same company. Buying an auto policy from the same company as a homeowners policy can result in discounts on both insurance policies.
3) Paying the full amount for one year of auto insurance saves money over 6 month renewals or monthly payments. Monthly payments are offered for consumer convenience and include a service charge.
4) Family cars are less expensive to insure than sports cars or luxury cars. Four of the five cheapest vehicles to insure are minivans. Comparing the cost of insuring several different cars before deciding which car to purchase can save drivers money.
5) Good credit scores save money on more than bank interest rates, they also save money on car insurance. Statistics indicate that people who are responsible with credit are less likely to have auto accidents.
6) Membership in organizations like AAA and AARP and labor unions can qualify drivers for discounts. Drivers should check with organizations they have memberships in to find out if they qualify for preferred customer discounts.
7) Raising the deductible on collision and comprehensive insurance will lower premium costs. This means the driver will have to pay out of pocket for more of the damages if he or she is involved in an accident.
8) Check for discount offers on safety features on cars. Some companies offer discounts for side curtain airbags, antilock brakes, collision avoidance systems and other safety features that reduce the risk of accidents or protect against injuries.
9) Accident or claim free discounts may apply to drivers who have not had an accident or made an auto insurance claim in a specified period of time, usually three to five years. Some companies refer to this as a safe driver discount.
10) Maintaining a clean driving record with no citations for moving violations saves money on auto insurance. A single speeding ticket can raise insurance rates and disqualify drivers for some discounts that would save them money.
These ten tips for cheap auto insurance can be utilized by drivers of any age. The next article deals with 10 tips that apply to specific high risk groups like teen drivers and senior citizens. Finding cheap insurance for young drivers and seniors hard. For these drivers, finding discounts is especially important since their average rates are much higher than drivers in other age groups.