Lower Car Insurance Premiums – 2 Little Known Tricks For Getting Lower Auto Insurance Rates

Anyone who has been negatively affected by the steady downturn in our economy knows just how important it is to make every dollar count. Expenses that were somewhat trivial previous to the recession, are now very difficult to pay. Car insurance premiums are one of these expenses. No matter what your reason is for wanting to lower your rates, there are two little tricks that I recently learned that can help you get lower auto insurance rates, and keep your current level of coverage, and deductible amount the same.

1) Raise your personal credit score to 720 or higher. Of course, there are many other benefits to having a stellar credit rating, but it’s amazing how much of a difference it can make in the amount you are charged for auto coverage. As competition increases between all the auto insurance companies, the need to insure safe and responsible drivers increases as well. One of the new things they are paying more attention to in an attempt to rate a driver’s maturity and responsibility level is their credit score. Most insurance companies believe that a higher credit score means a higher level of responsibility. They will give big discounts to those who have them.

2) Drive less. In many cases, you don’t even have to drive that much less to receive big discounts. More and more, bigger discounts are being offered to those who drive less than 10,000 miles a year. This discount is referred to as the low mileage discount. Furthermore, if you cease commuting to and from work in your car and switch to public transportation or riding a bike, you will receive even bigger price breaks.

Auto Insurance Coverage Reviewed

Who does not want to save on auto insurance premiums? You want to save the auto insurance premium at the same time you need to have the correct limits and auto insurance coverage so that the purpose of insurance which is the passing on of the risk to the insurance company is served. There is already a misconception in our minds that the insurance companies do not settle claims, or that when it comes to settling claims they show you so many conditions. Yes, insurance companies do have conditions, but the main reason claims are not settled is because we are not aware of the car insurance coverage and do not take the right policy.

A basic car insurance policy may include six coverages and a basic understanding of the coverages is given here.

Bodily injury liability and property damage liability will apply to injuries or damages that you as the driver or policyholder or any other driver named on the policy, or any person who has borrowed the car with your permission cause to some one else. The bodily injury will cover the liability caused to a person. Property damage liability will cover the liability of damage to a car or property belonging to someone else car. Here the reference to any other property means buildings, lamp post, railing, fencing or any object which is damaged by your car. You need to make sure that you have sufficient amount of liability at least, the amount needed as per your state requirements or even higher to protect your assets when you are sued by someone else.

Personal Injury protection or medical payments pay you for the treatment of injuries to all the occupants of your car. Broad coverage of Personal injury protection would cover medical expenses for injuries, lost wages and cost of replacing services normally performed by someone injured in an auto accident. This can even include funeral expenses in case of death.

Collision coverage pays for damage to your own car when there is a collision with another car, object or your car flips over. This coverage will reimburse you even if you were at fault in an accident. Normally this coverage is sold with a deductible amount. The higher the deductible you would opt for the lower your auto insurance premium will be. In case, you are not at fault you can sue the opposite car driver and recover your deductible amount.

Comprehensive coverage is the widest cover under car insurance. It covers loss due to theft, collision, natural calamities, riot vandalism or contact with animals or birds. There is a deductible applicable and the higher the deductible the lower auto insurance premium will be charged.

Uninsured motorist coverage would indemnify the loss incase you are involved in an accident with uninsured driver and you are not at fault. Under insured driver is one who is at fault and does not have sufficient auto insurance limits to pay you for injury. Remember that the intent here is to give you a basic idea of the coverage, which a customer should be aware off.

Once you know what you want and what you want to compare things become very easy. This is the main steering wheel for comparing auto insurance quotes which will steer you to a smooth finish of low auto insurance rates.