Ways To Lower Your Auto Insurance Costs

February 9, 2011

in Cars and Vehicles, Financial, Insurance

First Prize at the Car Show: 1937 Chevrolet Deluxe Coupe
Creative Commons License photo credit: skeggy
Every driver in the US is mandated to have auto insurance, but boy can it be a pain to pay the monthly premiums. It’s impossible to know in advance how much the insurance companies will charge since their rates vary greatly from state to state, and even city to city. Although you can’t usually compare two people’s insurance rates, there are some things you can do to lower your own auto insurance costs.

One of the most important steps you can take is to raise your deductible. What does that mean? The deductible is the amount you pay yourself before the insurance company pays out. As an example, if you have to repair your car due to an accident and your deductible is $500, you’ll need to pay that amount and then the insurance company will pay the rest. The reason you want to raise your deductible is that your premium will go down. If you really want low cost Florida auto insurance, or insurance in any other state, get a plan with a high deductible.

The next most important thing to do to lower your rates is to drive a safe car and keep a good driving record. Safe cars with modern safety features cost less to insure since the insurance company is likely to have to pay less if you’re involved in an accident. In the same vein, safe drivers get better rates. The insurance company evaluates how safe you are by looking at your driving record. If you have no tickets or fines, you’re likely to get a much lower rate than somebody with a bad record.

The most important step for lowering your insurance costs is to get insurance quotes online to compare plans and prices. By getting several quotes at once, you’re more likely to find an insurance provider who will offer you coverage at lower prices.

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