Six Ways to Lower Car Insurance Bills

With the economy in crisis, weak job market and ever increasing prices of goods and services, everyone is looking at way of reducing extra expense. Auto insurance is a necessity if you plan to drive and it is an expensive ordeal. However, there are some tips that you can follow to reduce the cost of your insurance.

Compare and shop
The first place and the most important step you can take to save you from paying too much for insurance is to compare prices and shop around. You can simply use the Internet to shop and compare rates from various companies. Be sure to check the reputation of the company as well as their record on Better Business Bureau to ensure that all is well. You do not want to select a company that offer you discount rates but will not come through when you need to file a claim. Therefore, it is important to deal with reputable companies.

Increase Your Deductible
The next step after selecting your insurance company is to adjust your deductible. The deductible is the money paid out of pocket before the insurance steps in when filing for a claim. Increasing your deductible will lower your monthly payments. Thus a $500 deductible will carry a lower monthly payment compared with $250 deductible. It is important to repair minor damages yourself, as your premium will increase when you file for insurance claim.

Adjust Your Coverage
It is best to apply for the coverage you only need. For instance, if you happen to own an older or less expensive car, then you may not need a full coverage on your vehicles. In such a case, it may be more advantageous to apply for liability. The more coverage you have, the more expensive your insurance payments will be.

Park Your Car in a Garage
Car theft and vandalism is big issue for both the owners as well as the insurance companies. If you park your car in a secure garage, then your insurance company will be willing to lower your monthly premium because they feel that there is less risk of vandalism or theft.

Fix Your Credit Report
Your credit report plays an important role when you apply for financing and insurance. Insurance companies like to be assured that will receive their payments every month and they prefer to deal with clients they believe are responsible. If you have poor credit, you will be charge a higher premium because the insurance companies view you as high risk. Therefore, you should look over your credit report and report any mistakes and errors to the credit bureaus as soon as possible. Removing errors from your credit report will help to improve your credit score.

Limit Your Mileage
Drivers that put a lot of mileage on their car will also be charged a higher rate. Thus, it is smart to limit your driving. There are times that it is faster and less expensive to take public transportation as well as carpool with buddies and colleagues to work. Not only will you save on gas, but you will also save on insurance.

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