Different Vehicles Equal Different Insurance Rates

Saving on auto insurance is as easy as asking for discounts and even buying the right vehicle.

You can save hundreds on your insurance premium just by buying the right vehicle. If you are looking to purchase another or a new vehicle, make certain you do not purchase a high performance or higher priced vehicle. Mustang Cobras, Cameros, Irocs and any other car that is considered a sports type or high performance vehicle will be quiet high on insurance. Stick with lower priced, safer vehicles if you want to keep insurance premiums low.

Auto insurance premiums can be kept lower by making sure you are getting all of the discounts your company offers. This can be done simply by asking your agent to review your policy with you. Some companies offer safe driver, multi-vehicle, multi-policy, driver’s education or driver’s training courses, and/or discounts if you are married or over a certain age.

Keep your premiums lower by either, increasing your deductibles (out of pocket cost), lowering your liability limits, or even dropping the coverage to just liability and uninsured motorist. If you have an older vehicle which is paid for and has a lower book value, consider carrying just the minimum coverage on it.

If you have a young driver in your household make sure to start them with an older, paid off vehicle and just liability. One thing that a lot of people are aware of is the fact that some companies actually apply discounts to pickup trucks which they do not apply to cars. Therefore, starting a young driver out with a pickup truck could save you hundreds of dollars.

Always make certain of your companies policy on accidents. If they do not offer first accident forgiveness, you could be looking at anywhere from a 10% to a 40% increase in premium after your first accident (at fault or not). Find out for sure if they will not cancel your policy after your first accident providing you are not cited for a vehicular offense (D.U.I. or D.W.I. et cetera).

This leads us to another way to keep insurance lower. Not only is drinking and driving or driving under the influence illegal, it will also get your insurance cancelled if you are convicted. This means that you will have to go to a substandard company, most likely get an SR22, and, therefore, pay anywhere from $1500 to $2500 a year for full coverage insurance on a vehicle. The premium could be even higher than that depending on what you are charged with.

One simple way to save on auto insurance is to just check with different companies. Compare rates, but also make certain to compare policies making sure that they are carrying the same coverage. If you find a lower rate on insurance but the liability limits are lower and deductibles are higher compared to another one of the same rate (with higher limits and lower deductibles), then you are not getting a better deal at all.

In conclusion, simply ask, look, and purchase wisely and you can save hundreds on auto insurance.