Tips for Reducing your Car Insurance Costs

Written By: Teri Harvey on September 19, 2009 No Comment

Sorting out your car insurance is one of those chores all drivers need to do once a year (well all the legal ones anyway). Have you ever had to make a claim? Out of those of you that can answer yes, I bet there is a fair number of you that were disappointed with their insurer – some of you will have had to chase the insurance company, some of you will no doubt have had to battle with the insurer about the costs, I bet most of you will have found it stressful.

One of the main reasons for this is that cheap car insurance deals are often not worth the paper the certificate was printed on. When looking to renew you auto insurance, it generally pays to go with a reputable firm. They don’t always provide the cheapest deals but thats because, like with most things, you are getting what you pay for.

Alot of people do not realize that they do actually have considerable control over how expensive their car insurance quote is going to be, and that is the focus of this article. Keep it in mind that your auto insurance costs are related to the level of risk you pose to the insurance companies’ investment in you, or your car more specifically. Based on this, here are some straightforward tips for helping keep your car insurance costs down:

1. Type of vehicle that you drive The type ie. make and model, of your vehicle does have a significant impact on your auto insurance costs – SUVs, sports cars, performance cars, and those that statistically pose a high theft risk are a bigger risk to automobile insurers who statistically will have to pay out more for these policies in the long run. If you are about to replace your vehicle then check with the insurance companies about which car models are categorized in the high insurance groups and then remove them from your list.

2. Being a careful driver helps Recent insurance claims and any driving convictions will make you a riskier driver to the insurance companies and so this will tend to push your auto insurance costs up. Drive safely and you will find that this will help lower your car insurance quotes. Drivers who have recent speeding fines and recent claims on their risk profile will probably not be able to qualify for cheap car insurance unfortunately.

3. Consider the amount of deductible that you pay The deductible is the amount of money you are required to pay yourself in the event of any claim for car damages and medical expenses and the cost of your insurance policy gets cheaper the more you are prepared to contribute. Careful, safe drivers who have the advantage of a clean driving record may find that it is in their favor financially to agree to pay a higher deductible – this can significantly lower the price of your auto insurance policy but of course keep it in mind that in the event that you do have an accident then it will work out more expensive since you will be required to meet more of the costs yourself.

4. Type of car you drive Making your car more difficult to steal with security systems such as alarms and immobilizers – this is especially important if you have a model that has a high theft rate. Make sure that you mention what anti-theft devices your vehicle has when getting an insurance quotation. It is better to avoid those makes and models that have a high theft rate full stop – talk to your insurance provider about what models are on this list they should be able to tell you.

5. Loyalty Rewards Some insurers will cut a deal if you have more than one policy with them so consider taking out your home insurance with the same company. When it is time to renew your policy check with your insurance provider about any loyalty discounts and ask if your risk profile got better – if you have had a clean driving record over the past year then this may help reduce your car insurance somewhat.

Teri is an insurance actuary and lives in Las Vegas. She writes for the las vegas car insurance guide where you can find more tips for finding car insurance in las vegas.