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5 Ways to Pay Less on Car Insurance

When you are going to shop for car insurance, you must have the knowledge about some important factors that are influencing your auto insurance rate.  Some factors are not in your hands. These factors include:

  1. Age
  2. Gender
  3. Previous traffic and claims records

Irrespective of these factors, there are diverse ways by which you can reduce your car insurance rate.  There are five authentic tips… by following them, you will get – very likely – a cheaper car insurance cost.

  1. Before Purchasing your car, evaluate the cost

The model of the car and year of manufacturing that you are going to purchase will affect the cost.  For sports and new luxury cars, you’ll have to pay more than older models (not the same as old cars). You will see that there is a difference of large amount on same type of cars. Shortlist the vehicles that you are interested to buy.  Then consult your dealer for the rate of all shortlisted vehicles. Compare these figures and sort out which will cost less.  Doing such practice will ultimately help saving a lot in your auto insurance.

  1. Ask your insurance company for low mileage discounts

Most insurance companies offer discounts to only those policyholders whose per annum mileage is less than average.  Your commute may be short or you drive less for any other reason.  Whatever the reason, your mileage will help you get a lower cost for your auto insurance.  So always get information about all available discounts.

  1. Get Information about all other discounts

Just ask! Different companies offer discounts based on different criteria.  For example, some car insurance providers offer discount to specific professional groups. Your insurance provider will ask about your work, career or profession and based on a list of these professional groups, you might get a possible discount if your profession is present in that list.  Generally, these lists include doctors, teachers, accountants, certain companies, etc. Similarly, most companies offer discounts to customer who make their car safe by installing alarms and/or other safety devices in their vehicles.  Some other companies, offer special discounts to senior citizens.  Others offer discounts to outstanding students whose GPA match their specific criteria. So, always get complete details about discounts criteria before purchasing a policy for your car.

  1. Add an experienced driver to your policy

Adding an inexperienced driver will not be beneficial for you since it will ramp up your auto insurance cost.  A young driver will not get a discount due to lack of experience and increased risks of accidents. Insurers also have concern about parents insured cars on their own name driven by their children, that’s why they always ask for people in the same household and if any other drivers.  Therefore, when you are purchasing a policy, please try to make sure about which name you are going to add as a driving person for that vehicle.


  1. Try to set up less installments payments and less gaps between payments

When you are going to decide about the installments payments, keep in mind that if you get less payments that will be critical for the cost of your car insurance. Most auto insurance companies apply administration charges per each installment. So if the number of installments is more than you have to pay more administration charges. These charges will be significantly higher for those who purchase small premium products. If you have purchased king premium then try to pay installments upfront.  This may be more beneficial to pay installments upfront than investing your money on any other project.  Similarly, there should be small gaps between two installments.

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