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law requires you buy auto insurance. So if you must get cover, how can
you reduce costs ? Here's 7 easy ways to get the best possible auto insurance
deal.
* Multiple Quotes
Get multiple quotes - use the internet and call a few brokers. It's
easy to gather some good comparison quotes.
Remember to get different types of quotes e.g one from a direct-sell
insurance company; another from an offline broker who keeps a database
of quotes; and a couple from the internet.
Cheapest might not mean best. Will they pay out if you make a claim
? How financially secure ? How reputable ? Check around with family
and friends, and look for online reviews.
* Different type of car
Insurance costs vary depending on car type. Obviously, that $100k sports
model costs more to insure than your average runabout. If you're planning
to buy a new car, check insurance costs before you buy. I once set my
heart on a beautiful, high performance, highly tuned Pontiac.
Luckily I checked the auto insurance before I bought it, because I couldn't
get insurance. Every broker, every insurance company flat turned me
down because I lived in a high car-crime area. So I had to forget the
car of my dreams until I moved up-town.
* Age and Value
of Car
Maybe you're buying a used car ? Maybe your car saw better days a few
years ago, and now values much lower ? So why pay for high-priced auto
insurance ? In particular, do you still need fully comprehensive coverage
?
A good rule of thumb multiplies insurance premium by 10, and compares
that figure with your car value. So if you're quoted $1000 premium and
your car is worth less than $10,000 you may want to think if comprehensive
represents good value. If you drop collision and/or comprehensive coverage,
you should get big savings.
* Higher deductibles (excess charges)
Most auto insurance companies use deductibles to keep policy cost down.
Deductibles, or excess charges, show what you pay before your auto insurance
policy kicks in. Try requesting quotes with different levels of deductibles,
and see how your quotes vary.
Most internet quote forms contain a box where you can specify preferred
level of deductibles. Ask your broker his recommended level. For example,
going from $250 to $500 deductible can slash your insurance costs by
20% or more. Go to $1000 and you save a lot of money. But you must pay
the deductible if you need to make a claim !
* Multiple Insurances
I guess this might come under the 'Get Multiple Quotes' heading, but
it's still worth mentioning separately. You usually get an insurance
break if you buy multiple policies with the same insurer.
This might mean multiple vehicles, or homeowner and auto insurance.
Either way it's worth asking about multi-policy discounts.
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