If you are looking to pay less for car insurance (and who isn’t right now?) there are several things you can do to help make sure you are getting a low rate. Besides the obvious tips such as shopping around with different carriers, and buying your policy on line to avoid paying an agent’s commission, there are a few simple things you can do that can help you keep your costs in line, and obtain very cheap car insurance.
First, find out what the legal limit of coverage is in your state. Try to keep your coverage near the legal limit to keep the cost down. You can also raise your deductible if you plan to carry collision and comprehensive coverage on your vehicle. Usually, if you raise your deductible from $500 to $1000 you will see a premium decrease, because you are essentially telling your insurance company that you will not file any small claims with them. You can, of course, rake in big savings by simply carrying liability coverage. This is the coverage that pays for someone else’s losses due to your negligence.
Avoid rental and medical payment coverage. Exclude anyone in your household who has a poor driving record or has just gotten their license. Think about paying for an entire policy period-usually six months-at once instead of in monthly payments to save on installment fees. Sometimes other easy-to-obtain savings can be had too: some companies give a discount for setting up an automatic withdrawal each month; some will give a rate reduction for taking a defensive driving class.
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