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Reduce Your Car Insurance Policy Premium

With automobile insurance costs on the rise, it pays to periodically review your insurance policy costs and coverage to make sure it is the best deal for your current situation. The six strategies presented below will generally position you for the best auto insurance deals.

1.Maintain good credit. Many insurance companies are now using credit scores as a factor in rating insurance  policy premiums. Check your credit rating, correct any errors, and practice responsible use of credit to qualify for better rates with many companies.

2.Avoid speeding tickets and practice safe driving. Keeping your driving record free of moving violations and accidents for 3 years will position you for the best rates.

3.Reduce coverage on older vehicles. Collision insurance may not make sense if the vehicle.s value is low. The collision insurance premium may cost more than the car.s worth over time, and you may do better to put the savings into a “new car” fund.

4.Compare rates before a new vehicle purchase. If you happen to be in the market for a new car, check the rates for the vehicles you are considering. The price of the vehicle, cost of repairs, included safety equipment, and theft rates are all factors that can make a significant difference in rates from one vehicle to another.

5.Purchase multiple policies from one company. If you have more than one vehicle, or have more than one type of insurance policy (such as auto and home), ask about multiple policy discounts. You can usually save significantly by combining them with one company, but first verify that the rates and coverage on all of the policies are competitive to ensure there would be a true overall savings.

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6.Comparison shop. Get price quotes from at least 3 different companies, but do not make a final determination on price alone. Check the reputation and stability of the companies you are considering. Check with family, friends, and consumer magazines for referrals, and check the companies. financial health with rating services such as A.M. Best at (http://www.ambest.com). Check with your state insurance department (http://www.consumeraction.gov/insurance.shtml) to see if there are complaints filed against the companies you are considering.

In Auto Insurance Premium Reduction Part II we present some specific suggestions that you can take to your current insurer or use as a basis for comparison shopping to get the maximum coverage for the lowest cost. In Auto Insurance Premium Reduction Part I, we presented six strategies that will position you for the best car insurance rates. In this part we present some specific areas to consider when reviewing how well your current coverage fits your needs and then when shopping for better deals.

1.Consider higher deductibles. The deductible is the amount you have to pay out of your pocket on any claim. Higher deductibles can significantly reduce the premium. Discuss the options with your candidate insurers and decide how much you can afford to pay out of pocket in the event of a claim.

2.Eliminate unneeded coverage. Review the coverage on your current policy and cancel coverage for anything you feel comfortable paying out of pocket in the event of an accident or breakdown, such as towing or rental car coverage.

3.Ask about low mileage discounts. Drivers who travel less than 7,500 miles per year may qualify for a low-mileage discount. If your driving habits have changed, contact your insurer to see if you qualify for a discount. Also, consider carpooling or use of public transportation to reduce annual mileage.

4.Ask about group insurance. Ask your employer and any groups or associations to which you may belong to see if you can buy insurance as a member of a group to achieve a lower rate. Also ask insurers if your occupation qualifies you for a discount.

5.Ask about other discounts. Discounts may be available for vehicles usually parked in an enclosed garage, equipped with a theft-deterrent system or air bags, anti-lock brakes, or daytime running lights. If the driver has attended driver training or defensive driving courses, has a good driving record, is a student with good grades, is a senior citizen, or is a long-time customer of the company, further discounts may be available.

6.Watch the bottom line. Remember that the goal is to minimize the overall cost of the insurance while maximizing the coverage that it offers, all from a company that you can trust. The largest discount may not be the best deal. Make sure you get all of the discounts for which you qualify, and then compare the prices after discounts.

Finally, weigh the costs and coverage against the financial strength and consumer track record of the company to make sure trouble-free claim service is likely to be there when you need it.

There are a lot of companies out there competing for your business, and with the wide array of cost savings options available to you, you’re sure to find a way to find a good deal on insurance policy. Happy hunting!

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