Posted on August - 22 - 2009

Getting Discounts From Car Insurance Online Providers

If you’re reeling under the high cost of car insurance premiums, just think about how much it could cost you without it. If a cop pulls you over on the road and you don’t have auto insurance, you face big fines. And if your car is damaged in an accident, even a minor one, you may have to pay through the nose to get your car repaired. But you’ve gone over your budget and your premiums are killing you. Don’t worry; there are ways you can get discounts on your car insurance premiums from online insurers that could make it more affordable for you.

First, consider some things you could do which could enable you to cut your car insurance rates. For one, you could consider using public transport more often or car pool with your neighbors. Some insurers give discounts to car owners who drive a lower-than-average number of miles a year, on the theory that if you drive less you’re also less likely to get into an accident. Also, if you own a flashy car that is attractive to thieves, you might consider trading down, since such cars are a factor in high insurance premiums.

Other factors that could qualify you for a discount include a spotless driving record with no accidents for least three years, a high credit rating, having a car with many safety features and living in a neighborhood with a low crime rate.

Second, consider getting your other policies from your car insurance carrier, if it offers them. For example, if you get both your fire and homeowner’s insurance from the same company, they may offer you a discount on the two policies.

Third, eliminate redundant or unnecessary coverage on your car insurance. For example, if you already have sufficient health insurance, there is no reason for you to maintain personal injury protection coverage on your auto insurance. Eliminating this could save you as much as 40% on your premiums. Also, if you own an older model of car, you can remove comprehensive or collision coverage. The rule of thumb is that your car should be worth ten times the premium you are paying; if it isn’t then it’s not worth continuing the coverage.

Fourth, consider increasing your deductible. The deductible is the part of any claim which the insurer will not cover and which the insured will have to pay for. A higher deductible means lower premiums. Of course, you would have to shoulder this amount if ever you’re in an accident so you should also consider if you have the money to pay for the deductible.

Fifth, look for car insurance quotes through online comparison sites. Online carriers may offer more competitive rates. And do your comparison shopping on a regular basis, ideally at least once a month. Remember that the insurance market is also subject to trends, so you may suddenly find the quote that you are looking for even if you didn’t found it when you were first looking.

Keeping these tips in mind when you’re dealing with your carrier could save you hundreds of dollars a year on your car insurance premiums.

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