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Low cost auto insurance guide

Finding low cost auto insurance isn’t that hard. Everybody like to save money and nobody likes to spend money on things like insurance – something most people never collect on and never see any benefit from.

There are numerous factors that make up what your auto insurance premium costs. Some factors you have no control over. Some you have a little control over. Some factors you have a lot of control over.

Factors you have no control over

Age and gender are the two biggest factors you have no control over. If you’re a male between the ages of 16 and 25 you will be paying, on average, the highest auto insurance premiums. There are a few ways to chisel into this big chunk of your premium. Look for auto insurers who give good student discounts and/or discounts for taking defensive driving programs.

Factors you have a little control over

Some things you have a little control over. These are things you could change, but it would be inconvenient to do so. Geographic location is an example. If you live in a rural area where crime is high, you’re going to pay higher rates. Those who live in rural areas almost always pay lower rates (unless they commute into an urban area every day).

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Married people always pay lower rates than single people.

People with multiple vehicles usually receive mult-vehicle discounts. Overall your premiums are higher, but on a per-vehicle basis (divide your total premium by number of vehicles) your premiums are usually less per vehicle.

Improve your credit score. People with higher credit scores have lower insurance rates.

Factors you have a lot of control over

Install an anti-theft system. Anti-theft devices usually lower premiums, especially high-end systems like Lojack or ForceTracker. ForceTracker reports on their website that some owners receive a 35% discount on comprehensive insurance premiums.

Say you’re married, even if you’re not. It’s not exactly ethical, but insurance companies never ask for a copy of a marriage license.

Say you drive 3 miles to work, even if you drive 100. Again, it’s not ethical, but the insurance company has to take you at your word.

Play with your deductable. A higher deductable means a lower insurance premium, and vice versa.

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