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					                   Effective ways to reduce your auto insurance bill

In a recession hit economy it can be very stressing paying steep bills one after another.
While looking to cut costs, one area you can focus on is how to reduce your auto insurance
bill. Since carrying auto insurance is a necessity in most states of the US, it’s never a good
idea to do away with it completely, but you can tailor your policy and find other smart and
easy to reduce auto insurance rates successfully.

      Use public transport as often as you can and let your auto insurance
       company know about it – The logic is very simple; the less you use your car, the
       less you expose it to any kind of risk ; a good way to reduce auto insurance rates. So
       walk, cycle, car pool or use public transport and make sure your auto insurance
       company knows about it when it’s renewal time.
      Choose a car that costs less to insure – This is something to do before you buy
       your next car. The internet has made it very easy to conduct research online. There
       are websites that let you know the average auto insurance rate of each car model.
       Most auto insurance websites also have free quote calculators that let you get a fair
       idea of how much your rate will be for a particular car. Make use of these to
       ascertain the insurance rate so that you don’t get a nasty surprise when it’s time to
       insure. You can reduce auto insurance rates by selecting a low risk safe car as
       against a flashy sports car.
      Maintain your car well – a well maintained car not only shows the auto insurance
       company you take proper care of it and are less prone to being careless with it, it
       also raises the bluebook value of your car in case you ever need to claim. Keep
       pictures of your cars from different angles with you as also receipts of any parts
       you’ve got installed, like new tires etc. This will make it much easier for you to be
       able to get a fair claim for your well preserved auto. A safe car which is well
       maintained will definitely help you reduce auto insurance rates.
      Buy your teen driver a separate car – Anyone who has teen drivers at home will
       know how rates hit the ceiling as soon as they are added to their parents’ policy. An
       effective way to reduce auto insurance is to buy them a separate car, an old beater
       for starters; and their own auto insurance. Not only will this keep your rates
       manageable, but also in case your teen files any claim/ or gets any traffic violation
       tickets (and they all do at some point) it will not go on your record, preventing
       unnecessary rise in premiums.
      Revisit your auto insurance policy – Few people take out the time to read their
       policies once they have bought them. Over time situations change and your auto
       insurance needs change accordingly. You might want to make revisions to your
       policy to meet your present requirements.
           o Drop unnecessary coverages if your car is now an old beater and you can
               afford to pay off any damages to it out of pocket. Go over every auto
               insurance coverage in detail and analyze if you really need it at this point. It’s
               usually a good idea to drop collision once your car is over 7 years old and
               comprehensive once it’s over 10 years old. Any claim you make after this
               point will not amount to a significant value taking into account the deductibles
              you’ll have to pay before claiming and your car’s blue book value. Dropping
              collision and comprehensive alone will reduce your auto insurance rates
              significantly.
          o   Choose the right deductibles – Selecting the right deductibles can easily
              reduce auto insurance rates by anywhere between 10-40%! The higher your
              deductibles, the lower will be the rates. Raising your deductible from $250 to
              $1000 can get you huge savings but only do it if you can afford to shell the
              $1000 out of pocket at short notice if need be. Another option can be raising
              your deductibles really high for a short time to set some emergency money
              aside. But remember that’s a gamble…anything can happen anytime!
          o   Grab all the discounts you can – Check with your agent about auto
              insurance discounts that are available and work towards them. Defensive
              driving certification, aircushions and anti-theft devices, low mileage, no claim
              bonuses, multi car and multi-policy are some of the common ones. If you’ve
              recently got married or crossed 25, these events will also reduce auto
              insurance rates.


Get started on your auto insurance policy today and use these simple measures to reduce
auto insurance rates. Every dollar saved will add up to a substantial amount over time
taking some load off your pocket. Happy savings!

				
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posted:7/11/2011
language:English
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