Just like paying taxes and waiting in line at the DMV, paying for auto insurance is an inescapable part of modern life. If you live in a big city or in the suburbs and do not have a car, there is a good chance you may not be able to get to work very easily. Most states force drivers to purchase auto insurance by penalty of law and if you are caught without coverage, you could face stiff fines and penalties. It is inevitable that you will have to purchase insurance, but there are several different ways you can get your rates down.
Negotiate.If you are in the market for a new insurance provider or are just getting insured for the first time, your best tactic is to shop around and compare prices. By playing the market and making different carriers cater to your needs, you can drive down prices and find the deal that fits you best.
Drop the extensive coverage. When you purchase a new car from a dealer,they force you to get comprehensive insurance in order to take it off of the lot. While having this kind of coverage on a new vehicle is important, after several years you will find that you simply do not need it. Instead of sitting back and paying expensive premiums every month, you should rework your rates and find a deal that is more affordable. While you're at it, consider raising your deductible.
Pay on time. One of the best ways to maintain a low insurance rate is to simply pay your bills on time. If you build a good rapport with your insurance company, they will start to offer you perks and discounts to show you their appreciation for your business. By paying for your insurance on time every month, or paying for six months at at time, you will also cut out the potential for late fees and drive down your monthly payment.
Get tickets fixed. If you ever listen to the radio in your car you know that traffic lawyers are all competing for your business. Cops like to bust anyone breaking minor traffic violations in order to get funding for their stations and the lawyers are there to scoop up the residuals. While you may think it is a scam, these lawyers have ties with the court system and will allow you to get the ticket taken off of your record if you agree to certain concessions like defensive driving classes.
Scoot around town. Most state and local governments leave off a glaring omission when it comes to auto insurance. They make you get your major vehicles insured, but allow you to zip around town on a compliant scooter. Not only will you skip out on paying insurance, you will also save on gas because some vehicles can get over 150 miles per gallon.
Finally, be safe. If you are a safe driver, it may seem like you are paying for nothing when paying your insurance bill every month. Your insurance should not be an overwhelming burden on your budget and you should find the best ways to scrimp and save on your payments. While your insurance agent is looking to make sales, they also want to get the best deal for you in order to keep your business.
What are you best tips to save money on automobile insurance?