Selecting Smart Auto Insurance Premiums

Auto insurance premiums do not have to be incredibly expensive if you know how to choose them. Smart auto insurance purchases provide you with the coverage you need without requiring that you pay for anything you will never use.

Only Pay for What you Need

Begin shopping for auto insurance premiums based on the legal requirements for your state. You will always have to purchase the legal minimum, so you can use that as your baseline for the rest of your insurance costs. Smart auto insurance purchases should include the minimum legal amount and then the most insurance coverage you can get for the least amount of money. If you are driving a car that more than five years old, purchasing additional insurance coverage might be a waste of money. Cars that have depreciated over five years are seldom as valuable as the price of comprehensive insurance coverage.

Keep Deductibles Higher

Sign up for a policy that has the highest deductibles you would feel comfortable paying. Most drivers manage to go years between making insurance claims. Every year that you pay a lower premium because you are carrying higher deductibles is another year that you save money on insurance premiums. If you feel like you could cover the deductible in the case of an accident, there is no reason to continue paying more for an insurance policy with a lower deductible rate.

Consider Your Driving Habits

How you drive should also be a large factor in how much insurance coverage you purchase. If you commute in heavy traffic daily, you may want to invest in extra coverage because you are at a higher risk of being involved in an accident. If you only drive your car once or twice a week, you do not need the extra coverage. You can save money by purchasing an auto insurance policy that is discounted due to low mileage. Where your car is stored should also play a role in how much coverage you purchase. If you keep your car protected from the weather in a covered garage, you will not need as much coverage as you would if you keep your car in an open driveway all year.

Finding the Right Discounts

Every auto insurance company offers special discounts to qualifying customers. While you shop for auto insurance, take the time to look through the discounts that are available through each company. You may find that one company has several discounts that you would qualify for automatically. Try to find the insurance company that will give you the best discount package. Homeowners, safe drivers, good students, and senior citizens may be eligible for multiple policy discounts from many of the top insurance companies.

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