Finding the
best auto insurance rates can sometimes be tricky. It is absolutely necessary
to be insured on the roads, though. In fact, it is required, by Illinois state
law to have coverage. Some find auto insurance to be extremely expensive but,
there are ways to help make it more affordable. Here are some things to
consider to find the ideal price of insurance.
Shop Around
Get quotes
from multiple insurance companies, including different types of companies.
Also, realize that the lowest number does not mean the cheapest.
Consider
Insurance While Shopping for Cars
Some
vehicles have lower reliability ratings and other factors that contribute to
higher premiums. While researching cars it is important to compare potential
premiums for each of your options to ensure you are getting the best deal.
Increase
Deductible
By
increasing your deductible, you can decrease your premium. Just be sure that
the deductible is manageable for your budget and that you have enough money
saved in case you need to file a claim.
Bundle
Insurance
If the
insurance agency that you choose offers bundling, take advantage of it. If not,
try to stay with the same company for all of your insurance needs. This results
in discounts in most cases.
Keep Good
Credit
Having good
credit helps lower insurance rates. Researchers have found a significant
relationship between your credit score and amount of claims filed. Insurance
companies tend to rely on this correlation to define your financial
responsibility.
Low Mileage
Discounts
Research
mileage averages and see if you fall below that. Do not be afraid to ask about
a low mileage discount. This discount could also apply to you if you are
someone who carpools.
Group
Insurance
Some people
fall into the category of people who receive insurance from their employer or
other groups they belong to. Some insurance providers offer discounts on auto
insurance to people who fall into this category.
Other
Discounts
Ask your
agent if there are any additional discounts you are qualified for based on
certain qualities such as how you drive, etc.
Purchase 10+
days before you actually need it
By
purchasing coverage before you need to use it helps drive down premium costs.
Pay in Full
Up Front
If possible
pay in full, rather than setting up a payment plan. The amount you save
annually will add up.
Get New
Policy When You Move
Especially
out of state! Some states have significantly higher insurance rates than
others.
Older Cars
Buying a
brand new car, just released is exciting, but if your priority is lower
insurance premiums it is better to purchase models that are 5+ years old. They
are considered more reliable.
VIN Number
for Quotes
The purpose
of this is to see if you are eligible for a discount if you have anti-theft
devices.
Go Paperless
Some
companies value using less paper and offer a small discount to those who opt
out of using paper which is not hard to do in this age if technology. It is a
small offering, but it adds up.
Insurance
Vocabulary
Be sure to
understand what the verbiage means so that you have a good idea of what you
actually need covered and what questions you need to ask your agent.
Automatic
Billing
This is
another way to save over time, similar to going paperless.
Education
Some
insurers offer discounts based off of the level of education you have. For
example, some offer discounts for college graduates.
Teen Drivers
Teen drivers
are known to drive up insurance costs, since they are more accident prone. But,
if they are in a college that is 100+ miles away without a car some insurers
allow them to be temporarily taken off of the plan. Additionally, most
companies offer a "good student" discount implying that they
correlate this test of intelligence with responsible driving habits. Proof of a
safe driving class can also save some money on teen auto insurance.
Change
Insurance When Lifestyle Changes
If you
expect to drive less due to retirement or other factors, report this to your
insurer. This can reduce the amount that you have to pay for insurance.
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