Auto Insurance Savings – Secret Checklist

I usually have no interest in talking about Auto Insurance, Health Insurance, or any other type of insurance. But although, the topic is generally not very interesting to me, it is one of those necessities that bring piece of mind.

Also, since insurance is generally a recurring expense, I've had to look at my own insurance costs and see if I could conceivably save some additional money on either auto or health insurance. No, I'm not talking about the Geico, "Save 15% in 15 minutes or less", although that could work. "Though, I admittedly did get an auto insurance auto quote online, and this started me off on the journey of finding better insurance rates, which I ultimately achived.

You can try this too if you want, just enter you zip code below and it will get you started.

However, I did more than just get an online auto insurance quote, so I guess it is not really a "secret" checklist. But I hope it is a good one for you. I wanted to make sure I took a few other factors into consideration and I figured it would be a good idea to share those auto insurance saving tips with others. So here they are, I hope they help.

• Shop AroundWhen looking for a new policy, get at least three quotes, this can and should include online quotes. Rates for comparable coverage can vary significantly, some can vary by more than $500 for six months' worth of coverage.
• Keep in mind that there are generally three groups that sell insurance:* Direct - Companies like Geico, etc. These companies could be great if you have a decent driving record. They can however be farily picky.* "Exclusive" Agents - These are companies like State Farm and All State, which use agents to sell their insurance and they are generally paid on commission. This could be a good choice if you don't have a perfect record and are still looking for a fair rate.* Independent Agents - Which genrally sell insurance from many different companies, and they too get paid on commission. These individuals could provide a great opportunity after you've met with the "exclusive agents" to see if they can offer a better deal.However, keep in mind to not get sucked in to a "bargain" for which you would pay greatly later. Make sure that the insurance company you choose has a good credit history and rating with reputable companies such as Moody's, it may also not be a bad idea to see if there have been many complaints.
• Take advantage of all available discounts. Ask about membership discounts, because they're not always going to volunteer these rates to you, you've got to ask.Discounts can be quite different from company to company as well as by state. Here are a few possible discounts to look for, and don't be afraid to ask for them. They could save you literally hundreds if not thousands of dollars.- Senior Discounts- Military Discounts- Defensive Driving Classes- Good Student Discounts - Generally offered to students with GPA over 3.0- Association & multiple car discounts.- Safety Discounts- Loyalty Discounts- Combined Insurance Discounts - This is generally available if you take other types of insurances with the company. (i.e. Health Insurance, Home Insurance, etc.)
• Consider the car you are looking to insure.If you haven't bought your car yet, you may consider the type of car and how much it would cost to make repairs to it. These costs may be considered by insurance companies, thus affecting the bottom line cost of the insurance for that car. Example, if you would get a hot rod car for a teenager with an average GPA, you can expect to pay a heck of a lot more than considering a more conservative car, for a student with a good GPA and has taken a defensive driving course. Ask your nearest insurance company for a listing of what types of cars they have listed as safer cars and generally have lower insurance rates.
• Consider Increasing Your Auto Insurance DeductibleRemember, your deductible is the amount you'll pay out of pocket when making a claim before your insurance starts paying. This deductible applies to collision and comprehensive coverage (and is not generally considered in your liability insurnace) and is the insurance that specifically covers your car. By increasing the deductible you are willing to pay, the better your rate will be. Of course this is something that should be considered carefully. You may think about how much are you willing to spend in repairs before you want the insurance company to pay for the rest. It may not make sense to have them fix something that would cost you $200, but if you did get into a big accident (hopefully you wont), then you'd definitely want them to pay for the biggest chunk. Having a high deductible can save you lots of money, but that limit should be within your means.
• Consider your credit and see what you can do to clean it up.Unfortunately (or in some cases fortunately) your credit will paly a role in the insurance rates you receive. I am fortunate enough to have created a good credit score and this has saved me a significant amount of money. But if you don't happen to have excellent credit, take some time to do what you can to clean it up a bit. It is well worth the trouble and could save you a good chunk of money over time.
• Only take coverage that you truly need.Do you really need full coverage for that 'ol beater uppper? If the car is not worth a lot of money, then why would you want to spend on more than is necessary. Many insurance companies will only pay for the total value of the car if it is considered "totalled". So if your car is only worth a couple of thousand dollars, does it make sense to spend for more than is necessary?
• Get married and get older. Even though this sounds funny, it is very interesting to watch how much insurance goes down as I get older and have been married. I guess it has something to do with showing that I could handle more "responsibility"? Who really knows, but the fact remains that indeed there are lower insurance rates, so ask for them.
• Do the things that show you are willing to protect your car. Example, Install a car alarm. Keep it in the garage if you can. Have low-jack installed in the car. Buy a car with safety features such as anti-lock brake system, alarm and air bags. Mention anything you've done to keep your car safe and would diminish the need to have to use the insurance.
• Pay in advance if possible. It's interesting how much your auto insurance can go down if you pay six months or even a year in full.
• Consider where you are living if at all possible. It's interesting (and I guess it makes sense) to see the rates for "better" neighborhood. Areas where there are more uninsured motorists and more wrecks get slapped with higher rates.
• Though you may not be have control over your gender, if you are a female, take advantage of possible lower rates. Males under the age of 30 are usually charged higher rates than females because they are involved in more accidents per mile than any other demographic.
• Stay insured. If at all possible,don't let your insurance policy lapse. Your insurance may be more expensive than it was before. Customers who let their insurance expire—even for a couple days—are statistically higher-risk, and insurance companies often charge extra for this.
• Here is one that appears obvious, but don't overlook it. Don’t insure vehicles that you don’t drive. But if you drop insurance you may want to register the vehicle as “inoperable" to avoid any complications or penalties. Only consider dropping a vehicle from your policy if you’re sure you’re not going to be driving it for a long time.
• If you want help understanding insurance terminology, take a look at these brief definitions»
• And finally, if you can drive less. Some insurance companies offer a discount of up to 10% if your annual mileage is less than 5000, and up to 5% if you drive less than 7,500 miles per year.

As I said before, I normally have no interest in sharing general information that doesn't have to do with health, wealth, or success. However, being that I noticed I could save a few additional dollars on car insurance, then why not do so. I hope these resources save you time, money, and resources that you can apply to another area of your life that matters more to you than insurance.

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