Tips to Keep your Auto Insurance Low

It seems all insurance carriers have their own criteria for determining how much you are going to pay for auto insurance. Some of these criteria you may have control over, and others you may not. The insurance industry uses variables such as age, location, driving record, claims filed, and many other items to help calculate your insurance rates. Also things like deductibles, coverage amounts, and uninsured motorist coverage, can have a dramatic effect on how much you will pay for your auto insurance.

First off, if you want to keep your rates low you need to keep your driving record clean. Any traffic ticket such as a speeding ticket, and running a stop sign, are technically called moving violations, which, along with any car accidents, will raise your rates as much as 40% or perhaps even more.

If you drive less than 10,000 miles a year you will often get a discount. The less you are on the road the less likely you are to be in an accident.

You should also do some research before buying a car. Some cars are more expensive than others to insure due to things like safety records, the frequency that type of make and model is stolen, or the expense of repair costs. Sports cars will cost you more to insure than a economy sedan, for example.

Next you will need to look at what type of coverage you really need. The main options include comprehensive and collision. Comprehensive will cover most anything that happens to the vehicle, deductibles not included; while collision will only cover damage to other peoples vehicles, or property damage. This may be a good idea if you are driving an inexpensive older car.

So all in all there are many items to consider when shopping for auto insurance. If you use these helpful hints and shop around you may be surprised at how much you can save from company to company. Just because a company is cheaper for one person does not mean that it will be cheaper for the next.

April 01, 2010, Posted by Rainy Day Mitch