Struggling to Make Ends Meet? Try Lowering Your Car Insurance Rate

Shop health insurance

Did you know that, according to J.D. Power, insurance rates have spiked by as much as $153 in just a year, from 2012 to 2013? Insurance rates and premiums can be high, and bothersome to pay. Even lofty rates, however, are better than the alternative. State laws require insurance, and driving without it can land you with tickets, fines, and an impounded car. Follow these auto insurance tips for cheaper, and more reasonable, rates.

Know Where To Start

First time car buyers should not make decisions lightly. Auto insurers are salespeople, and they want to make money. If you are buying your first car, check out the official sites for the National Association of Insurance Commissioners (NAIC) and the Department of Motor Vehicles (DMV). Both sites will give you honest, and thorough, information to get you started.

Buy Your Car First

A little shopping for insurance should make it perfectly clear. Insurance can be expensive. One of the best auto insurance tips is to buy your car with insurance, and insurance rates, fresh in mind. Why? Utilitarian cars, typically viewed as safer and associated with low risk driving, will save you money. Splurging on that sports car is only going to skyrocket your insurance rates. Also consider models with anti-lock brakes, or anti-theft mechanisms. Some auto insurers will give you discounts for safety features in your vehicle.

Play to Your Strengths

Shopping for car insurance varies from state to state, and among different groups of people. Young drivers should look out for young drivers insurance tips, instead of sorting through advice that may be inapplicable, or too general. Young drivers can ask insurance companies about getting discounts for good grades. Most companies offer lower premiums for young drivers with a B, or higher, grade point average.

Consider Pay As You Go Insurance

If you are not doing too much driving, you may want to consider pay as you go insurance. In a recent LexisNexis Risk Solutions survey, 50% of drivers stated that they would sign up for pay as you go insurance, as long as they are guaranteed a discount of 10%, or higher. Pay as you go insurance, or usage-based insurance, is evaluated a number of different ways. Some companies will provide you with a device that monitors mileage, speed, and driving habits. Others will use built-in systems, like OnStar, to assess your driving. Either way, if you avoid driving long distances, and drive safely, pay as you go may save you a good deal of cash.

Getting read to shop for car insurance? Need auto insurance tips? Start with basic knowledge, buy the right car, and consider specific discounts that may apply to you.

Leave a Reply

You must be logged in to post a comment.