5 Tips To Lower Your Auto Insurance

5 Tips To Lower Your Auto InsuranceAccording to the US Labor Department, consumers spent an average of $983 on auto insurance in 2011. This a 23% increase from just five years ago.

Since insurance rates are always on the rise, here are 5 Tips to lower your auto insurance bill.

1: Always get quotes from at least 3 different providers.

Auto insurance prices can vary greatly from company to company. Shopping around can save you a lot more than you may think.

2: Get the highest deductible you can afford to take on.

Typically the higher the deductible, the lower your premium will be. You’ll pay more when you have an accident, but if you’re like most people who haven’t had an accident in years, you stand to gain from the lower monthly premiums.

3: Before you buy a car, check on the insurance cost.

If at all possible, make this one of your research steps before getting a car. The fact is, some cars have cheaper insurance costs, and some cars have much higher costs. If you put off getting that sports car you want, and make do with a family car for a few years, you’ll enjoy fairly low insurance costs, depending on where you live.

4: Pass on collision and comprehensive coverage if your car is an old clunker.

If your car is really old, you might be paying more in insurance than the car is worth. Use this calculation to see for yourself…

Add your comprehensive and collision premium together and multiply the total by 10. If the number is more than the value of your car, then you should pass.

5: Work to increase your credit score.

Most companies use your credit score to determine your premium. A lower credit score could increase your payments by up to 50%. So it pays to do what you can to increase your credit score. Starting with getting your credit report, and having any mistakes corrected which may be affecting your score in a negative way.

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