Your Quick Guide to Cheap Auto Insurance Rates

Reader’s Question:

Are there any secrets to getting cheap auto insurance coverage that I don’t know about? Why can my neighbor get affordable rates and I can’t, even with the same company?

Tyrol

Arvada, CO

When trying to obtain cheap auto insurance rates, the main idea is to reduce the amount of risk you represent to the auto insurance providers. Other than that there really is no “secret” to cheap rates. The following tips can be very helpful to you:

1. Shop Around for Rates - Do it over the Internet, using auto insurance comparison websites. You can obtain free insurance quotes coming from lots of different auto insurers, therefore maximizing your ability to spot the cheapest policies available.

2. Know Your Discounts - Discounts can help a lot to reduce your auto insurance rates. There’s a good chance your eligible for a few (there’s a lot available) so always ask your insurer about this.

3. Pay Annually - Reduce your rates by as much as 20% by setting up an annual payment. Most companies today give discounts or reduced premiums for customers who pay a year upfront.

4. Raise Your Deductible - This will lead to lowering your premiums. Just make sure you don’t overdo it so you can still afford to file a claim when absolutely necessary.

5. Leverage Good Driving History - Your driving history has the most impact on your auto insurance rates. Keeping a good driving record can help you keep rates affordable in the long run.

6. Maintain Excellent Credit - People with good credit tend to have less accidents, so insurers award lower rates. Take advantage of this fact and put your excellent credit to good use.

7. Minimize Risks - Do this by taking a defensive driving class (learn to be a better driver), keeping your car inside a garage at night, and by lowering your annual mileage (low-mileage discount).