7 Easy Ways To Slash Your Auto Insurance Costs
by: Neil Stelling
The law requires you buy auto insurance. So if you must get cover, how can
you reduce costs ? Here's 7 easy ways to get the best possible auto insurance
* Multiple Quotes
Get multiple quotes - use the internet and call a few brokers. It's easy to
gather some good comparison quotes.
Remember to get different types of quotes e.g one from a direct-sell
insurance company; another from an offline broker who keeps a database of
quotes; and a couple from the internet.
Cheapest might not mean best. Will they pay out if you make a claim ? How
financially secure ? How reputable ? Check around with family and friends,
and look for online reviews.
* Different type of car
Insurance costs vary depending on car type. Obviously, that $100k sports
model costs more to insure than your average runabout. If you're planning to
buy a new car, check insurance costs before you buy. I once set my heart on a
beautiful, high performance, highly tuned Pontiac.
Luckily I checked the auto insurance before I bought it, because I couldn't get
insurance. Every broker, every insurance company flat turned me down
because I lived in a high car-crime area. So I had to forget the car of my
dreams until I moved up-town.
* Age and Value of Car
Maybe you're buying a used car ? Maybe your car saw better days a few
years ago, and now values much lower ? So why pay for high-priced auto
insurance ? In particular, do you still need fully comprehensive coverage ?
A good rule of thumb multiplies insurance premium by 10, and compares that
figure with your car value. So if you're quoted $1000 premium and your car
is worth less than $10,000 you may want to think if comprehensive
represents good value. If you drop collision and/or comprehensive coverage,
you should get big savings.
* Higher deductibles (excess charges)
Most auto insurance companies use deductibles to keep policy cost down.
Deductibles, or excess charges, show what you pay before your auto