Many variables comprise your auto insurance premium. These include vehicle type, your driving record and your state's insurance rules. You can get the best price for your auto insurance if you know what questions to ask your insurance company. For example, does your auto insurance company offer discounts if you have been accident-free for three years or more? In addition to asking this question, you can take other steps to get the best price for your auto insurance
Instructions
Step 1
Shop around for the lowest auto insurance rates. Since auto insurance rates can vary among insurance companies, get at least three quotes from financially stable companies.
Step 2
Request higher deductibles. Higher deductibles typically mean lower costs. According to Insurance Information Institute, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 percent to 30 percent.
Step 3
Keep good credit. Many insurance companies use credit to determine your auto insurance rate. "It is a fact that drivers with long, stable credit records have fewer accidents than drivers who don't," says Insurance Information Institute.
Step 4
Ask the auto insurance company about discounts that they offer. These may include defensive driving courses, anti-theft devices, air bags, good student and customer loyalty discounts.
Step 5
Drop full coverage on older vehicles. Use the Kelley Blue Book to determine your auto's value. Then decide if it is cost-effective to lower coverage on that vehicle.
Step 6
Compare auto insurance rates before you purchase a car. Part of your auto insurance premium is determined by the type of vehicle you choose to insure. Auto insurers consider the vehicle's price, repair costs, safety record and theft risk.
You know that you have auto insurance, but do you know how you might be covered if you got in an accident or something happened to your vehicle? Because of the variety of options available when insuring your vehicle, you may not be aware of exactly what your policy really covers.
In most states, drivers are required to purchase liability insurance to cover damage they might inflict on other vehicles or drivers, but what you cover beyond that is largely a matter of choice. A variety of options might come with your car insurance that may or may not cover everything from a fender bender to a tree falling on your vehicle when it's parked on the street.
Here is a snapshot of some policy options and what they may really cover:
Collision insurance: The most common form of auto insurance beyond liability, collision covers repairs on your vehicle if another driver is not at fault for damaging your vehicle. The deductible amount is the amount you would pay for repairs before the insurance begins paying.
Comprehensive insurance: This covers damage to your vehicle that is not the result of a collision, from a pebble bouncing up and chipping your windshield to your car being stolen. Check your individual policy for limits on what is covered.
Loan gap coverage: If you paid for your car using a loan, this would cover the difference between what you owe on the loan and what your car is worth at the time of the accident if your car is totaled and is valued at less than the balance of the loan. This is typically an optional auto insurance coverage available for purchase.
Rental coverage: Check your insurance policy to see what you are covered for if you rent a car. Most allow for liability coverage, but your policy may not allow for the same collision coverage on a rented vehicle as it would your own.
Other benefits: Some insurance policies provide lower rates for extended periods of safe driving. You may also receive a discount for adding anti-theft devices or taking defensive driving classes. Some policies also offer accident forgiveness programs that will allow you to have lower rates after periods of safe driving.
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