The overall U.S.
economy is not experiencing inflation but auto insurance is with rates
increasing 6% to 8% per year in the last few years. With the average policy
averaging around $900, policy holders need to find ways of getting the best
insurance for the least amount of money.
Comparison shop
This seems obvious but people often stay with the same company year after
year without checking around for lower rates. The Internet is a very good place
to get fast quotes on rates.
Buy the right car
The more expensive the car, the more expensive the insurance. Some cars are
also more popular with thieves. Currently, the most stolen cars are the Acura
Integra and the Cadillac Escalade SUV. The Integra is popular because its parts
can be sold to the legion of Honda Civic owners. SUVs in general are very
popular with thieves.
Raise your deductible
You don't want to be making a bunch of small claims that will result in a
raise in your premiums so it makes sense to raise your deductible from $500 to
$1000. This will take off from 15% to 30% on your premium.
Be over 50
Drivers over 50 years old drive slower and less aggressively. Members of
AARP can get special low rate insurance.
Don't have teenagers
If you must have teens and if they must drive, make them drive a used car,
not your nice, new one. Lean on them hard to maintain at least a B average
because this can lower premiums by as much as 20%.
Have a good credit record
A study at the University of Texas showed that people with the worst credit
scores had auto claims 50% higher than average while people with the highest
credit scores had 25% lower claims.
Have a good driving record
If you have points on your record, be sure to notify your insurance company
when they expire. Most insurance companies give a discount to drivers with a
clean driving record.
Don't drive so much
Your rates will be lower if your yearly mileage is lower. Try to car pool or
use public transportation when traveling to work.
Drop collision insurance if you have an older car
The worth of your car is simply not worth the cost of the premiums.
Try to live in the country
Living in urban areas with high rates of accidents and vandalism increase
the cost of your premiums.