Owning a car is a big responsibility and one task you need to settle right away when buying one is to get a car insurance. Since you have a lot of choices, you need to know right off the bat that an almost perfect driving record is a great way to lower auto insurance cost.

Below are other ways to make your car insurance cost lower.

1. Buy your auto coverage from the same insurer you got your homeowners’ insurance.

Many insurance companies will give you a big discount if you buy more than one type of insurance. You may also get a reduction if you have two or more vehicles insured with the same company. Some companies lower the rates for loyal customers who have stayed with them for a long time. However, I suggest you shop around. You might save money buying from various insurers, instead of getting from one company a multipolicy discount.

2. Go window shopping

Different companies offer varying prices, it’s wise to window shop. Your state insurance department may provide comparisons of rates charged by major insurance companies. You buy insurance to protect yourself in case something happens on the road. Basically you’re being protected financially and buying peace of mind. Since that’s the case, you must pick a stable company. Check financial stability of insurers with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings). You can also consult consumer magazines.

3. Establish a good credit record.

Maintaining a good credit history can cut down insurance costs. Most insurance companies use credit information to price auto insurance policies. Based on research, people who are effective in managing their credit usually have fewer claims. Protect your credit standing by paying bills on time. Avoid getting credit you don’t need and make sure to keep your credit balances as low as you can. Regularly check your credit record and correct errors promptly to keep records accurate.

4. Inquire about group insurance

Some companies offer lower prices to car owners who get insurance via a group plan from employers, professional, business and alumni groups or other organizations. Find out from your employer or inquire from groups or clubs in which you’re a member. Check if its possible.

5. Shop for insurers prior to acquiring a car

Find out car insurance costs before you shop for a car. Insurance premiums are partly based on car prices, repair costs, safety records, and susceptibility to theft. Countless insurance companies give discounts for car features that lower the risk of theft and injuries. I want to help you make a decision on what car to acquire when you’re concerned about safety and aiming to cut back on insurance cost. Get info from the Insurance Institute for Highway Safety (www.iihs.org).

6. Request for bigger deductibles

You pay Deductibles before your insurance policy kicks in. By asking higher deductibles, you can reduce your costs greatly. As an example, if you increase your deductible from $200 to $500 you could lower your collision and comprehensive coverage cost by 15 to 30 percent. Having a $1,000 deductible can save you 40 percent or even higher. Prior to choosing a higher deductible, make sure you have cash stashed away to settle it if you have a claim.

7. Seek out other discounts

Insurers give discounts to policyholders who has zero accidents or moving violations for a several years. You can get a discount if you enroll in a defensive driving course. If you are a good student driver, driver’s course educated, or is away at college without a car, you may also qualify for a lower insurance price.

When you shop, ask about discounts for the following:*

Antitheft Devices

Auto and Homeowners Coverage with the Same Company

College Students away from Home

Defensive Driving Courses

Drivers Ed Courses

Good Credit Record

Higher deductibles

Low Annual Mileage

Long-Time Customer

More than 1 car

No Accidents in 3 Years

No Moving Violations in 3 Years

Student Drivers with Good Grades

*The discounts mentioned may not be available in all states or from all insurance companies.

As a final tip, the key to having lower car insurance cost is not discounts, but the total price. A company that gives fewer discounts might still have lower overall rate.

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Sources:

How Much Car Insurance Do You Need?

Nine Ways to Lower Your Auto Insurance Costs