Hawaii Insurance Online – Waipahu and Aiea Car Insurance, Pearl City Car Insurance – Auto Insurance, Car Insurance

10+ Tips to Help You Save on Car Insurance

A lot of people shop for their car insurance based upon price only.  They will call insurance companies or shop online looking for the cheapest price possible.  Like almost anything else you buy, you get what you pay for.  If you’re paying a rock bottom price for your car insurance, are you getting a knowledgeable agent who will help you get the coverage you need?  Are you getting the type of claims service that you desire?  And most importantly, will the insurance company be there when you need it?

For some people, the cheapest premium is all that matters.  For others, service, claims and the company are important factors.  One must find the best value for what they’re looking for.  Whether you want the lowest premium or the most value, the following article can help with tips to save on your car insurance.

10+ Tips to Help You Save on Car Insurance

Most people complain about the cost of their auto insurance–hardly surprising, given that a typical policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can you lower your premium and save yourself money?

If you own a car and drive it, going without insurance is generally not an option. In most states, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.

Specific ways to save money on auto insurance:

1. Shop around. One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.

2. Increase your deductible. For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.

3. Keep an eye on your credit report. Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.

4. Drive less. If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.

5. Don’t use your car for business purposes. Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes.

I will provide the rest of the tips in my next blog.  Let me know if you have any questions.

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Hawaii Insurance Online – Waipahu and Aiea Car Insurance, Pearl City Car Insurance – Auto Insurance, Car Insurance
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