January 3, 2011

3 Ways An Auto Insurance Quote Can Help You Lower Yearly Coverage

If you have been shopping around for the best auto insurance quote you have most likely already discovered that there is no such thing as a simple policy. The cost of yearly coverage is determined by many different components, including where you live, your driving record, and how many miles you put on your car each year. In order to ensure that your premiums are as low as they can be you must have all the facts.

All insurance companies use approximately the same factors and methods to come up with an auto insurance quote for a prospective policyholder. The final premium cost is based on an analysis of mountains of statistics that indicate the probability that the new customer will generate risk factors. The insurance company wants to figure out how likely it is that this customer will make a claim in the future. That is why not everyone pays the same premium for the same coverage. There are several things that every driver can do that will guarantee he gets the lowest possible auto insurance quote.

In fact, there are dozens of minor things that can have an effect on your premiums. Things like anti-theft devices, air bags, driver training courses, anti-lock brakes and many other similar items will often help with modest reductions to your premium cost. You should always ask your agent if your company offers discounts for any or all of them. In addition to all of these relatively small considerations, there are ten or so that can actually make a real difference in the cost of your yearly coverage. You can find them by asking a company agent or by checking out the company online.

Here are the three best ways to make a significant difference in what you pay for auto insurance. The first is to combine your various insurance coverage plans with one company. Providers offer overall savings of as much as 40% for customers who show loyalty to the company. To get maximum savings, try to combine auto, home owners and life insurance policies under one umbrella. It definitely pays.

The second most effective method for reducing premiums is by increasing your auto policy deductible. The more financial responsibility you are willing to assume, the lower the cost of coverage will be. Make sure that you are a careful and safe driver if you take this option.

Finally, drop unnecessary coverage such as collision and comprehensive, especially on older vehicles. The value may not be there if your vehicle is not of high value.

These three options are the most effective ways to ensure that your yearly premiums are as low as possible.