The Key Tips To Trimming Your Auto Insurance Bill

By Author: J.J. Yong
Total Articles: 963
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It is true that auto insurance rates varies significantly from one auto Insurance Company from the other, therefore it is always good to shop around and check out what other companies are offering, opting for a lower premium by switching the insurer will save you hundreds of dollars easily on your premium.

Despite of the many factors which may affect your auto insurance rates, most insurance companies today focus on the credit score of their drivers. This is because people with lower credit score are found to claim for their vehicle damages compared to those with higher credit score. Thus, if you have a good credit score of 750 and above, you are more likely to lower your auto insurance by at least 25% in terms of premium.

Other than the credit score, the types of vehicles that you own also will affect your premium. It is advisable to look for a car with good safety features against theft and damages and with low depreciation rate. This is because insurer tends to charge a higher premium on luxury cars because these cars are more tempted to be under theft because there are demand for such cars; on the other hand, ...
... cars with lower depreciation rate are more likely to get a lower premium because of its strong second-hand value. This kind of cars is less likely to get into negative equity because their trade-in value tends to be better than the other types of vehicles with higher depreciation rate.

Take advantage of any discounts which are made available by your insurer. Discounts on combined policies of your car and home with the same insurer will help to reduce your premium by some percentage, also if you are safety conscious and had installed additional safety devices in your car, make sure your insurer is made aware of them because there is discounts available for cars with good safety features.

Keeping your car with low mileage is another interesting factor to have your auto insurance lower because of the correlation between low mileage and occurrence of accidents. Vehicles with lower mileage tend to have lower rate of accidents as compared to those with higher mileage.Therefore keeping your car with low mileage is a good thing to do because it helps to lower your premium cost, and at the same time entitle the vehicle for a higher trade in value.

If the trend of your claims were hardly going over USD1000, then raising your deductible to what it is currently to USD1000 is a good way to reduce your car premium cost by at least 15% with the use of claim-free discount in cases where you will not be claiming from the insurance company should your claim fall under USD1000.

Last but not least, maintaining a good clean driving record is good not only to lower your insurance cost but also to make sure you drive carefully to live longer. For anyone who has no accident records, nor have been issued with any traffic tickets or summons for the last three years, you are eligible for a safe driver discount from your auto insurer as an incentive for driving safely at all time.
For more information about auto insurance companies and online auto insurance, visit AutoInsuranceEssentials.com.