5 Steps to Reducing Your Vehicle Insurance Rates

Saving on the cost of an automobile insurance policy can easily be done using many simple methods. This task is often necessary as the steps for getting a good price can often be challenging. Many people often ignore an insurance policy once it has been purchased. The result is a consumer who might spend up to a hundred or more dollars that is not necessary. Vehicle insurance costs are not fixed and there are various ways for consumers to reduce their rate.

1: Up the Deductible

The deductible applied to an automobile insurance policy should be increased. One thing many people do not realize about the deductible is it is not an out-of-pocket expense. The amount of any deductible will be subtracted from the total payout for a claim. This means there is no reason to have deductibles that are at a low amount. Raising the deductible to $1,000 or to $1,500 significantly lowers the cost of an insurance policy as the carrier will be paying out less for a claim. However, consumers need to pay for any damage that is less than the deductible.

2: Car Pool

Saving money on car servicing and filling up the tank can be achieved by joining a car pool. The total miles an individual drives can be cut up to 75 percent when car pooling with three other people. As an individual drives less, then automobile insurance costs will decrease. This is due to companies that use mileage when calculating the premium.

3: Coverages

Many people simply buy the coverages that are included on a standard insurance policy. This is not the best solution as a car that is new requires different insurance than an older car. A vehicle which is paid for may not need collision and comprehensive coverage. These are optional and can easily decrease the costs for a consumer when they are eliminated.

4: Combine Policies

Most insurance companies that offer multiple types of policies will have a multi-policy discount. If the consumer can transfer their automobile insurance policy to the provider of their homeowners insurance policy, then a multi-policy discount will apply. This discount will be up to 10 percent to 20 percent off of both policies.

5: Discounts

Many automobile insurance companies offer various discounts for consumers. One option for a family with children who drive is to ask about a student discount. These discounts are typically available for a student who gets good grades or has taken a driving safety course.