Simple tips to help negotiate and lower your premiums
Going back a few decades, individuals were not particularly concerned with things like automobile insurance.
As some of you may recollect from our not too distant past, people of yester year relied upon the goodwill of their friends or neighbors to compensate them for the wrongful damages.
Unbelievably, these contracts were made on just a handshake and a promise. Times have certainly changed of the years. We now face skyrocketing premiums because of accident payouts and even more concerning high incidents of insurance fraud.
Because of many various reasons such as, DWI, speed violations and expensive collision repair payouts; auto insurance has now become mandatory for all vehicle owners. Most state governments mandated that auto insurance be carried, at least minimally, by these vehicle owners.
The overwhelming increase in the need for auto insurance over the last 10 years has led to increases in the complexity of insurance, while at the same time, amplifying the need to be more cost conscious in auto insurance purchases.
Buying auto insurance today requires as much dexterity and knowledge as buying the actual automobile itself. It is important to know the factors that an auto insurance company considers when offering quotes. This will allow you guidance in knowing what steps you need to initiate in order to qualify for a lower quote.
The five easy steps to a lower insurance quote are:
1. Portray yourself as a safe candidate: Insurance companies are interested in managing risk. Consequently they offer drivers who are less likely to get into wrecks or at a minimum into wrecks of less severity, a lower insurance quote.
- Maintain a clean driving record, free of traffic violations or accident claims.
- Install anti-theft devices in your vehicle.
- Attend a Drivers Safety Training program you will receive a certificate upon completion.
- Buy a vehicle equipped with safety options. The National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety together collect information on safety related aspects of different vehicles. Buy an automobile that is officially designated as safe.
- Park your vehicle in a garage this deters damages or potential vehicle theft.
2. Show your Credit worthiness: As a risk management entity, insurance companies are also worried about getting paid on time. If you can show yourself to be credit worthy, there is less risk of you not making your payments on time, thus warranting a lower rate.
- Maintain a good credit score and clear up any errors on your credit.
- Cut down on the total number of outstanding credit cards to 2 or 3.
3. Practice Financial Wisdom: The way in which you structure and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer. By taking steps to lower their risk, you receive a lower insurance quote and policy.
- Buy an annual policy instead of a six monthly coverage to get you a lower rate that remains the same for a year.
- Opt for automatic payment deductions from your bank account or your credit card to avoid getting charged for mail payments.
- Increase your deductibles on comprehensive and collision policies to reduce on the rates.
- Get loyalty discounts by buying your home and auto insurance from the same company.
4. Assess your Insurance Needs accurately: This is obvious, the more coverage you get the more it will cost you. Add-ons are killers in the insurance business; strip your policy down to just the minimum of what you need.
- If your vehicle is not used much or you have an old car with little market value, opt for minimum liability alone. It will cost you much less without the collision.
- After fulfilling the legal mandate on auto insurance, insure according to your needs alone.
5. Other things that you can do: There are a number of other considerations that go into your insurance quote. Some of them are not reasonable steps to take, while others you can do with little effort which can translate into substantial savings.
- If your car is used only for a particular purpose, or uses minimal mileage make your agent aware of it, as this will limit the cost.
- Students that make good grades and college graduates are often eligible for a discount.
- Give up smoking; it can help you get better quotes.
- Change your occupation if possible. Using your car as a delivery boy carries a higher risk than a working as a stock boy.
By simply taking the time to apply all or any of these concepts, you have the potential to save a substantial amount of money on your monthly insurance payments or annual insurance premiums.
Your insurance agency or agent could assist you by just a simple phone call. Then you will be on your way to saving some of your very hard earned money.
Tags; Buffalo NY insurance auto