Even though most states require all drivers to have an auto insurance policy, you can find several ways to cut your premium just by doing a little research and shopping around. The Internet makes it easy to browse several auto insurance quotes at once, and you can find many sites that only require you to enter your information once, while you will receive a handful of auto insurance quotes from different companies. One thing to keep in mind when getting offers from these insurance companies, however, involves asking questions about all their discounts available to see if you qualify for them. Some of the ways that you can lower your premium may be a pleasant surprise to you.
Several factors determine the cost of your insurance quote, some of which you can control and some of which lie beyond your control. The factors that carry the most weight in determining your auto insurance include the level of coverage – which you have the ability to alter – and your driving record – which may take some time to alter, but still lies in your hands. Other variables in determining an auto insurance quote include your age, gender, where you live and what kind of car you drive. For example, urban areas tend to have more accidents and thus higher quotes than rural areas, and sportier cars tend to get in more accidents than larger family cars.
Although each state requires a different amount auto coverage you need, you can still lower your premium by raising your deductible. Most states require a minimum of liability insurance, which covers injuries and damages to other cars when you cause an accident. If you decide to raise your deductible on your liability coverage, then you might save hundreds of dollars or more over a few years, although you will have to pay for minor dents and scrapes to other cars out of your own pocket. Usually, however, your insurance savings will cover these potential expenses.
You may also have to apply for collision coverage on your auto insurance quote, which covers damage to your car when you cause the accident. Again, raising your deductible can save you money while you will have to pay for minor scrapes on your own car. While most people get at least these two types of insurance, you should also consider getting comprehensive insurance, which covers any damage to your car even when you don't know the cause of the damage. For example, comprehensive coverage will protect against damage from fire, theft and broken glass. You also have the option of getting medical insurance, which covers emergency assistance in the case of an accident, and may also cover lost wages and suffering. Uninsured motorist coverage will protect you in the event that another driver hits you who doesn't have insurance.
Also, when getting an auto insurance quote , make sure to ask about any of the following discounts, if you qualify. First of all, most insurance companies offer good student discounts, either for you or a child registered on your car. You can also qualify for multi-line discounts if you have more than one car with the same insurance company, or if you have another type of insurance – eg. home insurance – with that same company. If your car has safety devices such as air bags or a car alarm, then you could save a on your premium, as well.
If you haven't had an accident or ticket in the past three to five years, you may qualify for a good driver discount, and some insurance companies even give discounts if you take a defensive driving course, too. Sometimes your occupation can even make you eligible for a discount. Some insurance companies give discounts to teachers, engineers and scientists, and many companies will have a special discount for people serving in the military. Also, if you have an AARP membership, you could qualify for a certain percentage of savings. You can even ask about any other discounts that may be available to you; it can't hurt to ask.
By Lisa Zyga