Saving Big On Car Insurance

By Susan Reynolds

Hoping to get the best possible price on your new car-insurance policy? A number of methods will assist you in saving lots of money. First, don't wait until the last minute to begin shopping around. If your current policy runs out before you've decided on a new one, you'll be left without coverage and be placed in a vulnerable position. Imagine the consequences if you're involved in an accident while uninsured. Even if this catastrophe doesn't befall you, a lapse in insurance coverage is not a desirable situation. It can cause difficulty when you try to obtain new coverage through a different company. Potential insurers will consider numerous elements, including your credit history, age, location, and current insurance, when deciding whether to offer you insurance and how much to charge you.

When there is a gap in your insurance coverage, the prospective insurer will want to know the reason for the gap. If it was a simple case of forgetting to pay a bill, the insurer will wish to know if this is a recurring problem or a one-time occurrence. How often did the lapse of coverage occur and for how long each time. Longer periods of time could imply that you are in the habit of driving without insurance, not a good sign in the insurers opinion.

You probably see now that planning ahead is the best way to go when you want to change your insurance provider.

You should be shopping for the best deal you can find in your new age bracket after you attain that age. In addition, if you are going to change jobs or move, you may be able to find better rates for your new occupation or location. One way your premium could be adversely affected would be if you were making a long-distance move.

Keep in mind that it is not always possible to save money. Difficulties may arise if you get a new job that places you in a higher-risk category, if you begin to drive your vehicle more frequently than in the past, or if you move a great distance from your previous home and therefore are not yet established in this new location. In each of these cases, be prepared to pay increased insurance premiums rather than reducing this expense.

The one thing you can continuously use to your advantage is maintaining a clean driving record. If such is the case, you are age twenty-five or above, and you are not about to go through any major changes in your living or work situation then it may be an ideal time to compare other insurance rates to see what kind of discount you are offered-especially if your current insurance rates have stayed the same or increased.

If you do find a better deal with a new insurance company, inform your current company. You might not have to change providers at all. Many companies will offer you the same price that you would have received with the new provider, just to keep you as a customer. If you put in some time and research and know the subject, you can cut your expenses and come out on top as a cost-conscious consumer.

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