Locating Cheap Auto Insurance Premiums

Auto insurance is one of the most important items that a person can't afford to neglect, so finding cheap premiums for them should be a high priority. This blog post outlines 10 easy steps to achieve this goal.

Step One: Buy Your Car

Auto insurance premium costs are determined by many factors, including your age and the type of car you own. If you have an older car, it will cost significantly less than buying a new one. If you buy one used from someone who had their insurance canceled or paid it off already, they may be able to give you a good deal on the car's auto insurance as well as other services such as repair and service work done in advance.

Step Two: Check Your Car's Record Card

If you are renewing your existing insurance, check the record card to see if there is anything you can do to lower the cost. If you have been in a few minor fender benders or had repairs done on your car for minor wear and tear, this could be taken into consideration by the insurance agent when figuring your auto insurance rate. If not, provide any additional information regarding any incidents that may have caused damage to the car and how it was repaired.

Step Three: Take Advantage of Discounts Offered by Your Auto Insurance Company

Many companies offer discounts off of your auto insurance premium for those who shop around for an insurer. This can be done with discounts that are issued by using your current insurer or with plans that are run by different companies.

Step Four: Use Credit Cards to Lower Your Car Insurance Premium

Many credit card companies offer a discount on auto insurance premiums when you use the card. Some of these discounts can be as high as 20%. If you have a credit card with a rewards signup program, signing up for these could also net you substantial savings off your auto insurance premium.

Step Five: Ask for Discounts Offered by Your Auto Insurance Company

Many auto insurance companies have websites that offer discounts off the auto insurance premium. This could happen when you apply for a new policy or when services are added to an existing policy. These discounts can sometimes be as high as 20%.

Step Six: Buy Additional Coverage Options with Your Auto Insurance Policy

Many auto insurance companies offer supplemental policies that you can buy to gain additional coverage. You can get your car covered in cases of vandalism, theft, accidents, and other problems through these extras.

Step Seven: Use Multiple Credit Cards to Lower Your Auto Insurance Premium

Many credit card companies offer discounts for those who use multiple cards. If you have a card with a rewards signup program, signing up for these might net you substantial savings off your auto insurance premium. Some of the credit cards that offer this are American Express with the Platinum Card and Chase Co-Operate Card. You can also get discounts when you pay your bill by paying off part of it on a different credit card or using a debit card.

Step Eight: Shop Around Your Auto Insurance Coverage Options

Look around to see what kind of coverage in different states has the lowest auto insurance premiums. You can also check to see if the auto insurance company has a local office that you can go to instead of paying them through the mail.

Step Nine: Ask Your Insurance Agent for Discounts

After you have chosen an auto insurance company and policy, ask your agent for any discounts that they offer. Some companies offer referral discounts when you refer your friends or family members to them. Other companies will give discounts for bundling policies with them; so if you have a home or life insurance policy with another company, you can get a discount on auto insurance when your agency does the work of combining all of your policies together. You might also be able to get a larger discount if you are willing to sign up for their client rewards program.

Step 10: Pay in Full for Your Auto Insurance Policy

If you are unable to get as much as a 10% to 20% discount off your auto insurance premium, there is always the option of paying full price. It can be a little more expensive than getting a discount, but it means that you will have plenty of time to save money for better coverage options down the road when you need it. There are also companies that offer insurance plans that give you 30-day free quotes; this way you will not have to spend any money up front and only pay when you need auto insurance. Many people choose this over paying full price because of the fact that they would then only need it for 3 months or less.

This list is just a few tips on how to save money on auto insurance. There are many other things that you can do before the year's end and these tips will help you save a lot of money long-term.

You can also check out this blog post detailing the best car insurance options for college students.

This blog post describes 8 easy steps to finding cheap auto insurance premiums for your needs. It's also important to note that many of these steps are dependent upon each other and cannot be done without the others for good results. This kind of thing is what makes budgeting so difficult, as it is never linear and all dependent upon one another for success.

I hope that you enjoy these tips and feel free to share them with your friends and family. It's always nice to see budgeting tips saved and used by others! Thanks for stopping by.

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Filed under: Auto Insurance, Buyer's Tips, General Finance, Uncategorized | Tagged: auto insurance, Best Auto Insurance Rates, buyer's guide | 4 Comments »

Read more posts on The Smart Dollar » Personal Finance for Millennials. Copyright 2012. All rights reserved. This post was written by Lauren Fox . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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Locating Cheap Auto Insurance Premiums

Locating Cheap Auto Insurance Premiums

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