Past Tense

With the economy being at all time lows and everyone feeling the pinch, it makes sense to try to lower your every day costs and economize wherever possible. One area that not many people focus on is getting low cost auto insurance, under the mistaken belief that there is little that can be done about car insurance premiums.

One of the first things you can do to qualify for low cost auto insurance is to make sure that you have an excellent driving record. Most people can request a discount if they’ve been accident free and have not incurred any traffic violations for a period of at least three years. Not all insurance companies will offer it automatically, so check to make sure you’re eligible and claim your discount with your insurer.

If you’ve shopped for a car lately, you’ve probably read the various consumer buying guides and are aware that a car’s government safety rating for crash tests can influence the price of the car itself. But it can also influence the insurance rate along with the car’s repair track record. The cost of repairs as well as incidents of thefts and accidents for a particular car model can affect the cost of collision and comprehensive coverage.

The auto insurance industry has compiled decades of data regarding driver and car profiles. Whether you personally fit into a high risk profile doesn’t matter to the insurer. So if you’re a 24 year male who opts for a shiny red Mustang, then the chance of you obtaining a low cost auto insurance policy is pipe dream. This is true even if you’ve been driving safely since you turned 15 and haven’t had single blemish on your driving record.

Just by raising your own out-of-pocket cost, known as a deductible, before a claim for insurance will be paid, you can lower your premiums by quite a bit. This is an effective way to obtain your own low cost auto insurance without even having to switch insurers. It makes sense to then use your savings to fund the amount of your higher deductible and set it aside. Then you can enjoy the peace of mind that you’ll have the deductible in hand while being able to see immediate savings.

You can get low cost auto insurance if you’re more of a weekend or occasional driver or fall within the limits for a low mileage discount, make sure you let your insurer know. Even drivers who use their cars on a daily basis but not for commuting to work can sometimes fall within this category. You may also want to drop comprehensive and collision coverage once your car gets older to save even more money.

If you’re anxious to see if you can obtain a low cost auto insurance policy, you should visit one of the rate comparison sites. You can get an instant quote for just about any vehicle you have in mind. The great thing is that you can change to different scenarios and know immediately what the impact on the bottom line will be. This is a great tool to use in conjunction with shopping for a new car.