November 4, 2009

Five Questions To Ask To Save On Auto Insurance

Auto insurance premiums can be extremely high; however it’s important that you are aware that you may be able to lower yours. The best way to save on insurance and lower your auto insurance rate is by asking yourself and the insurance company five specific questions.

The first question is the most important: What coverage do I really need?’ There are many difference types of coverage available. Each state has a minimum that is required by law. Find out what this minimum is, and then decide if it is enough for you when shopping for an auto insurance quote. Some lenders also require additional coverage. By knowing what the state requirements are, you can lower your auto insurance rates by asking for the minimum coverage. Once you determine exactly what coverage you need, the next question to ask is regarding the deductible: ‘Can I lower my rate by asking for a higher deductible?’ The higher the deductible, the lower your premium. You will pay more out of pocket in the event of an accident, but your overall insurance rate will be lower.

The next question is one that is often overlooked by many people: ‘What auto insurance discounts do I qualify for?’ Many people qualify for discounts they are unaware of. Several agencies offer auto insurance discounts for being a long-term customer, paying your premiums on time, defensive driving and safe driver courses, low mileage use, home and work location, good driving record and safety feature installation. You may also see if there is a discount for paperless billing and making payments online. Quite often there are also discounts available for organization memberships, such as AAA or other roadside assistance programs. Always ask for a list of membership organizations offering discounts, as well as other discounts the company offers.

Do you have other insurance needs as well? Ask yourself, and the insurance company ‘Can I save on auto insurance by combining all my insurance needs?’ If you have more than one vehicle needing coverage, you may be able to obtain a discounted rate for insuring multiple vehicles together. Likewise, you may be able to save even more if you obtain your renters or homeowners insurance through the same company. By combining all your insurance needs into one bundled package, you are likely to save even more. The one thing you must remember is that not all insurance companies are created equal. You need to ask yourself ‘Can I save more by going somewhere else?’ A different company may have a different deductible or offer more discounts. Or, a different company may offer the same discounts, coverage and services at a lower rate.

By asking the right questions, you can receive more discounts and a lower auto insurance rate.