Now that the economic times are so tough, many people are in search of ways of cutting their expenditure. Most financial advisers recommend their clients to live within their means. However, when it comes to saving on auto insurance, many people find themselves absolutely clueless how save money and still get the right auto insurance policy. For those who have no idea how to save on auto insurance, they should consider the following top 7 tips:
1. Taking precautions
Taking precautions basically means people should do certain things that show the insurer that they are a no-risk client. Normally, the amount of risk posed by a potential insure to the insurer is reflected by their premiums. Insurance companies charge low premiums when they determine that a user will not main any or minimal claims in the future. Two ideal ways of taking precautions effectively include going for defensive driving lessons and getting a separate set of winter tires.
2. Purchasing in bulk
For those who have more than a single car, and they also need to insure their house or other property; they should get all these insurance policies from a single provider. Choosing lump-sum payments is another form of bulk buying. When settling on an insurer, thinking about how much payment will have to be made cumulatively is important. The longer the payment period, the more payment likely has to be made. So paying in bulk for insurances, including auto insurance, is a good way to save money too.
3. Cleaning up record
Those who want to save themselves from the exorbitant charges of their auto insurer, they should make sure that they got their end covered and protect themselves to avoid paying too much. Their insurability and their record will be influenced by certain options. The first thing that breaks or makes their bargain plea is their driving record. The driving record should be kept clean, without accidents and tickets. People can save up to at least 5% in auto insurance premium costs by keeping a clean license.
4. Lowering liability
Those who are not able to save on auto insurance in any other way; they should choose to shed off the unnecessary. There are several ways of cutting back. One of them is lowering the value of the car. The cost of repair is directly proportional to the value of the car. Avoiding extras on the car is another way of cutting back. When a claim is made, insurance companies try to scale it down as much as they can. Extras on the car are ignored this way, so wasting money for unnecessary claims should be avoided.
5. Using temporary covers
Using hire cars or rentals instead of the car that is insured is another way of saving on auto insurance. Another way of saving on auto insurance is to purchase a cover for 27 days.
6. Doing homework
Reviewing the reputation of the insurer is also very important when it comes to saving on auto insurance. Moreover, quotes should be compared and the lowest of all the quotes should be selected. Penalties can be avoided by sticking to a single insurer for a minimal period of time. Jumping to the next auto insurance becomes available is also a way of enjoying cheap auto insurance. However, it is not advisable to move from one insurance company to the other during the mid-policy term. By actually finish the term, many savings can also be availed. People should spend some time shopping around.
7. Evaluating the deductibles
When a claim is made, the deductible are what is paid up front. Some things should be considered before varying this amount. Knowing when to raise the deductible is important. Deductibles should definitely be raised by careful drivers if it causes the premiums to decrease significantly. Knowing when to lower the deductible is also important. If a claim is expected to be made in a year, how much premiums will be saved that year should be considered first. If it is less than what will be added to the deductible, then the deductible should be lowered.
Saving on auto insurance is not an easy thing to do, but following these top 7 unique tips will allow people to save on auto insurance effectively.
Article Source: http://EzineArticles.com/expert/Zeeshan_Naveed_Bari/922486