Ways To Reduce Your Vehicle Insurance Rate Without Compromising Coverage Quality

November 20, 2017 · Posted in General Articles on Car Insurance · Comment 

If you must get big discounts, then you must NOT forget certain things. I’ll share some of them in this article…

1. A vehicle with a high safety rating will get you better rates than one with a poorer rating all other things being the same. Safety ratings should be given top consideration when shopping for a new vehicle. They will qualify you for a Safe Vehicle Discount.

2. It’s a known fact that young drivers attract high rates. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.

Therefore, as much as possible, do not place such a driver on your own policy. It will have an adverse effect on your rate. Sign an exclusion form that will allow your teen driver have his or her own policy.

Let your teen bear the responsibility of paying for their auto insurance. An addition argument in favor of this is that your teen will be more willing to take measures to reduce what he or she pays. The full implication of this is that your teen will be a lot safer as they’d do their best to avoid inflating their rates.

3. Find out if there is a group discount for the company you’re employed in if it’s a large one. Insurance carriers offer large organizations big discounts in the belief that such would attract members of that organization. That would save them on customer acquisition.

4. Who says your credit rating does not affect your auto insurance rates? Most insurers now take your credit rating into consideration when deciding what you should pay. Some experts will tell you that experience has shown a predictable pattern between the two. Profiles with poor credit rating, they claim, are usually less responsible on the road than those who have excellent rating.

5. A straightforward but rewarding way of bringing down your premium is by authorizing an EFT (Electronic Funds Transfer). This authorizes an insurance carrier to automatically withdraw your premiums from your account when due. This brings down administrative costs like those incurred when sending payment notices. Your rate is therefore reduced in line with the cheaper cost of giving you insurance.