Vehicle Insurance: Tips For Big Discounts

By Chimezirim Odimba

An affordable car insurance rate can be achieved in a lot of ways. But at the same time, a number of methods people employ in order to reduce cost usually result in less than sufficient coverage. However, in this article, I'll share several time-tested steps for paying less while you have adequate coverage....

1. You deserve a sizeable discount if a child on your policy does not drive the vehicle for a protracted period because he/she is is in college. Don't miss this if your child is in college. While you're encouraged to make a move, you must bear in mind that this isn't one of several normal discounts that all insurance providers offer.

2. There are vehicles that cost a lot more to insure. So have this on your mind when you are ready to shop for your next car. Two things that will make you pay more for auto insurance are a vehicle's crash rating and theft rate.

In addition, it will also cost you more if a car is more costly to fix or maintain. Asking the right questions will make it easy for you to avoid the "wrong" car and enjoy more affordable rates.

3. Paying your premium yearly will result in lower rates than choosing monthly payments. Although this alternative is always more convenient, it costs more for some reasons..

If you do transactions with banks you will agree with me that each check you process is considered transaction which attracts charges. While a yearly payment requires a single check and therefore one transaction for a year, monthly payments attrract twelve. You'll then have to pay the total of twelve transaction fees..

Apart from this there are also administrative costs that come with the monthly payment option. For instance, it costs some money to send payment notices each and every month.

These costs plus a profit margin for this feature is factored into your premium making it more than the same profile that pays annually every year.

4. A simple but rewarding way of lowering your vehicle insurance premium is by authorizing an EFT (Electronic Funds Transfer). This simply means your insurer withdraws your premiums automatically from your account at specified periods without sending you payment notices. This saves the insurance company in many ways such as removing the cost of sending payment notices and the cost associated with processing checks. The insurance provider passes part of what they save to you by bringing down your premium.

5. Take out some time to visit at least 5 insurance quotes sites that offer quotes on auto insurance policies. It should take you around 25 minutes.

While you visit each quotes site, make sure you give the same information. Doing otherwise will give you misleading results. When you've received your auto insurance quotes, compare them to determine which serves your interest best both in price and value.

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