Jul 262011

Are You Paying Too Much for Vehicle Insurance?

The following is a guest post on behalf of Cheap Car Insurance

A lot of people are paying too much for their car insurance. You could be one of them. It’s an easy trap to fall into. Maybe you’ve been with one company for years and have never even considered whether or not they could be overcharging you. Or maybe you only got quotes from one or two companies before you bought your policy. Or maybe you don’t realize that not all agents will tell you about all the discounts you’re entitled too. Luckily, there are a number of ways you can reduce your car insurance bill.

1.) Comparison Shop
This is the main way you can reduce your insurance premium. Insurance companies charge widely differing rates depending on a number of factors, including their rules and business models. It pays to shop around for cheaper auto insuranceonce a year or so and when you have any life-changing events, such as when you get married or add a teenager to your policy. Shopping around is also a good idea after you’ve just purchased a new car.

2.) Raise Your Deductible
A lower deductible translates into a much higher premium. Think about raising your deductible in order to lower your rates.

3.) Ask About Multi-Line Discounts
Many insurers will give you a discount if you have multiple policies with the company. It might be a good idea to purchase your automotive, homeowner’s and life insurance policies from the same company.

4.) Safe Driver Discounts
A number of companies will give you a discount if you haven’t been in an accident and/or had any traffic violations in the last few years.

5.) Claim-Free Discounts
To get this discount you usually have to be claim-free for anywhere from three to five years. Also, you often have to be claim-free on both your auto and homeowner’s insurance.

6.) Discounts for Good Credit
A lot of insurance companies will give you a discount if you have a stellar credit rating. Likewise, a lot of companies will raise your premium if you have a poor credit score. It pays to ask each company about their specific policy.

7.) Safety Feature Discounts
Discounts are often available if your car has certain safety features, such as antilock brakes or side curtain airbags.

8.) Employee Discounts
A lot of employers have made arrangements with an insurance company to get their employees a discount. Be sure to ask at work.

9.) Good Student Discounts
This discount may apply only for the drivers in your family that are still in high school, or it might go all the way through age 25 and beyond, depending on the company. Not all insurers offer this discount, and the rules vary from company to company. Some may accept a B average, for example, while others want all A’s.

10.) Change Vehicles
Finally, if all else fails, consider switching vehicles. Newer vehicles with added safety features often cost less to insure than older models. The type of vehicle also counts; a sports car costs more to insure than a minivan, for instance.