4 Ideas For Lowering Your Car Insurance Premiums

There are many things that determine the amount of insurance premiums you pay, but one thing is certain; insurance premiums are going up. You probably pay hundreds or even thousands of dollars a year in car insurance. But you might be interested to know your insurance rate is dependent on many factors including your insurance company, your age, your driving record, the kind of car you own and drive and even where you live.

Even though car insurance is expensive there are few drivers who feel comfortable without it. Third party car insurance is necessary for all registered vehicles but this type of cover only protects other drivers in the event of an accident. It doesn’t cover your car or you. To get this kind of cover you have to pay extra.

To save on auto insurance premiums for comprehensive coverage you have to have a good understanding of the way car insurance companies operate. To help you along I’ve compiled a list of 4 tips to saving money on your car insurance.

To save on your car insurance you have to do a lot of work to compare policies. It’s incredible how different premiums can be between companies. You could save hundreds if you get the right policy. One of the best places to go for information to help you compare is your state insurance department. Because insurance is regulated in some states you can find quality information about policies and rates. Otherwise start talking to family and friends and go online to find websites that compare different policies and rates.

Besides cost there is also a very important service element associated with choosing insurance. Not all companies respond in the same way when you make a claim. This is very important. You don’t want to have to fight to get a broken taillight fixed. You want action. So after you have narrowed down your choices to the three best go and approach these insurance companies and talk with them about what they are willing to offer you service wise.

You can also save money on most insurance policies by choosing a higher excess. This is the amount you have to pay before your insurance company covers the rest of the cost. The higher the excess the lower the premium you’ll have to pay each year. If you’re willing to pay more yourself so that you are insured in case of a large accident then you could reduce your premiums by up to 25%. Just make sure your excess is low enough that you won’t be left unable to pay it.

Removing certain optional extras from your policy you are going to save even more. Some insurance companies and policies are more flexible than others. Generally, however, you can remove such things as property theft, accidental damage, collision and uninsured motorist benefits.

If you’ll do a bit of research up front, before you decide on a policy, you’re going to be in the best position to save money on your premiums. After you’ve signed a policy it’s generally too late. Look at the different companies, different policies, excesses and extras. When you see how much you can save you’ll be glad you did.

James Spacey writes about a variety of topics including finding stocks for profit and learner driver car insurance.