Lowering Insurance Rates

Vehicle insurance—everyone needs it (the laws say we do) but we hate to pay the price for getting it. So how do you go about lowering the impact that this required expense makes on your wallet each and every month? Here are six suggestions and ideas on how to lower the cost of this necessary evil.

1. Mama told you that you "better shop around." Like the old song says, you should shop around. Each insurance company has their own rates that they charge, with their own unique discounts. Before choosing a particular company you should get a minimum of four quotes from different insurance companies. This provides a comparison for you to use in determining which company to go with.
2. Coverage Amount. You need to know exactly how much coverage you have to have. If you are required to have full coverage (which is a higher monthly payment) then you have to get that. If you don't have to have it, though, then why get it? Going with one of the lower coverage options (like liability only) will significantly lower your monthly payments.
3. Not all cars cost the same. Be aware that the type of vehicle that you have is going to have a significant impact on your insurance rates. For example, a Ferrari F-40's insurance payments are not going to cost the same as those of a Geo Metro. You should keep this in mind when deciding on what kind of vehicle to purchase.
4. Higher deductibles can save you money. Go with a higher deductible, which is the amount that you pay out of your own pocket before your insurance company helps out. Depending on the amount that you choose for your deductible, you could save as much as 15% to 40%. Keep in mind that this means that if you get into an accident you will have to pay more money, but you do get to save quite a bit on your monthly bill.
5. Purchase multiple policies. When you purchase multiple policies from the same agent, this agent usually gives you a rate break. Ask your broker what types of discounts they would give you if you purchase homeowner's or renter's insurance from them as well as car insurance. You may be pleasantly surprised by their answer.
6. Good credit is key. More and more often in today's world insurance companies, like many businesses, are using an individual's credit history in determining what they are going to charge their clients. They do this simply because they do not want to run the risk of having a client get canceled due to non-payment.