Wednesday, January 26, 2011

Guest Post: Strategies for Shredding Your Car Insurance Premium

Strategies for Shredding Your Car Insurance Premium

How much do you spend on car insurance each year? If you are like most Americans, you probably spend over $1,500 a month. Wouldn’t you jump at the opportunity to cut those premiums by several hundred dollars or more? There are actually a number of ways that you can reduce your premiums considerably. It is even possibly to cut them in half.

Stake Out Discounts

Insurance companies always play the numbers game. When statistics show you to be less of a liability than most other drivers, your insurance company will probably lower your rates. Some of the discounts that insurers offer include:

• Good student discounts (awarded to high school students who have a B average or better in school)

• Low-mileage discount (let your car company know if you car pool or take steps to reduce the amount of time you spend driving)

• Go to a defensive driving class

Many discounts can save you 10% or more a year, but only if you take the time to apply for them.

Know What You Can Afford for a Deductible

How much are you currently paying on your deductible? If you can afford to pay more, consider doing so. Doubling your deductible can reduce your premium by 30%. Just make sure that you have enough money set aside to cover that deductible in case you have an accident.

Ask for Advice from Your Insurer before Buying a New Car

The coverage you have to pay for a particular vehicle will depend on a number of factors. Check with your insurer to see what your premiums will be with a new vehicle. You can also find statistics on how likely a particular model is to be involved in an accident.

Decide When to Be Loyal to Your Insurance Company

Some insurers give discounts to drivers who stay with them for a while. However, sometimes you are paying too much with a particular company. Look around and go where the best rates are. It is a good idea to look for a new policy before your current one is about to expire. Some insurers will give you a 10% discount if you look early.

Always Look for Opportunities to Reduce Your Premiums

Most people never think to look for ways to reduce their car insurance premiums. They don’t know that a little diligence could save themselves hundreds of dollars a year. You should do everything you can to reduce these payments as much as possible.

Bio: Kalen Smith writes for Car Insurance Quotes, a car insurance comparison site.


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