Once you have purchase a new car, getting a cheap auto insurance policy with lower rate is quite advisable and save the cost of repairing the car when damaged. Meanwhile, auto insurance policy is very expensive to buy unless if you have a good car insurance broker that will give you some tips to help you find the best auto insurance company with attractive discount and cheap also.
Before recently, contracts were done by handshakes and a promise upon goodwill to compensate the victim whenever they have suffered wrongful damage to properties. What if such damages were done by a tree or self? Will there be a handshake in goodwill to compensate? I guess NOT. That is why, there is need for the insurance company to come to limelight and remedy the situation.
Auto insurance is now an important purchase for responsible individuals who stand at risk of losing their vehicle to some various damages. The Federal government has now made it mandatory that, auto insurance be carried by all car owners. This increase in the need for auto insurance cover over the years has now resulted in the increase on complex and expensive insurance policy.
Due to the complexity and the costly nature of various insurance companies, one need to be more cost conscious and apply dexterity in researching for the best auto insurance policy around to purchase. It is very paramount to know and understand the factors each insurance company consider when offering their quotes.
This will give you the opportunity as consumer to choose what qualify for a lower insurance coverage for your vehicle.
Important Steps to Help Lower Your Auto Insurance Rate
Below are the most easy steps that will guide you in getting a lower insurance quote for your vehicle.
1. Prove you Drive Safely:
auto insurance companies are more interested in people who have a safe driving record. Managing risk is one of the significant interest of insurance companies so if you can prove to them that, you are a careful driver and you don’t get into unnecessary wrecks, then you can sure have a low insurance quote.
2. Maintain a Clean Driving Record:
Maintain a clean driving record without traffic violations or accident claims. This good record can also fetch you a low insurance quote.
3. Secure your Car from Theft:
You will need to install anti-theft devices in your car to avoid been snatch away by car theft.
4. Acquire a Drive Safety Certificate:
Attend a drive safety training program to enhance your safe driving ability if possible. It will serve a great influence reducing your insurable rate.
5. Purchase a Safe Vehicle:
Buying an automobile officially designated as safe by the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety is a sure way of reducing the cost of auto insurance policy for that vehicle declared safe.
6. Show your Credit Worthiness:
You can get a lower auto insurance policy rate if you can prove you are worthy of paying your premiums on time. As a risk management entity, the insurance company are worried about getting paid on time without delay. So if you proof to them that you will not default in paying your premiums on time, then you are good to go.
7. Park your Vehicle in the Garage:
You should show a good safety measure by parking your vehicle in the garage. Cars parked in the garage stand a 75% chance of been secured against damage of any kind. This can also help you lower your auto insurance rate.
8. Maintain a Good Credit Score:
You should absolutely clear up any errors found on your credit and also try to cut down on the number of outstanding bills accrued to your credit cards to the barest minimum.
9. Exercise Financial Wisdom:
Do not be penny wise palm foolish. Even if you are stinking rich, try to spend wisely otherwise it will affect your lifestyle. When you become a spend rift, how on earth will you manage a simple auto insurance policy? The way you structure and make expenditures less can make an insurance company lower their insurance rate and treat you with respect as a customer.
10. Purchase Annual Policy Instead of the Six Month Insurance Coverage:
One of the ways you can get a lower insurance rate is to purchase an annual policy instead of just paying for the six month insurance coverage which remains unchanged for that whole year. You should also opt for automatic payment deduction from your credit card or bank account to avoid been over charged for default in payment.
11. Take Advantage of Loyalty Discounts:
Most insurance companies will lower your insurance rate on discount if you purchase your home and auto insurance from the same company. If your car is used for a particular purpose only, then you will have to make it known to your insurance agent because that will reduce your insurance rate. Vehicles which are not used much depreciate in value hence has a minimum liability which will cost you less when insured.
12. Read and Follow Proper Procedure:
Follow the proper procedure in fulfilling the legal mandate on your car insurance before you leave the building. Make sure you read and understand the insurance document tendered to you for signing. You wouldn’t want to sign what you don’t know.
Bonus: Other things that can help you get discount on your auto insurance includes: If you are a student that makes good grades in school, then you stand the chance of receiving a discount for your auto insurance. Giving up smoking can also help you get a better auto insurance quotes.
These are just the few i can remember. If you have any, you can drop it in the comments below. Thanks.
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