Every year, the premium of the auto insurance is rising. The good news is that there are ways to lower the cost of your auto insurance.
One way to save money in auto insurance is to pay for a higher deductible. The deductible is a form of payment that is made by the policy holder before the insurer pay for the coverage. By paying for a higher deductible, you will pay a lower premium. For instance, if you have paid a deductible amount of $500 and your accidental damage cost is $2000, the insurance company will pay $1500.
Auto insurance companies allow you to make payment for your car insurance through monthly or annual installment. If you pay the premium by monthly installment, you will be charged with fractional premium fees. You are charged with fractional premium fees because you take a longer time to pay the premium. Since you take a longer time to settle the premium, the insurance company will see you as a higher risk. Though paying monthly installment is cheaper, it makes the total cost of the premium higher. When applying for auto insurance, you should ask the insurer about the fractional fees. If the insurer charges a small fractional fee, it may be worth it to pay as monthly installment. However, it is best that you make payment for the premium in full annually so that you can save money.
If you want a lower premium, you should avoid buying high profile cars. High profile cars are often charged with a higher insurance premium because the expensive repair cost. In addition, high profile car tend to attract the attention of the thieves. High profile cars are most frequently stolen by the thieves. To get a lower premium rate, it is recommended that buy a low profile car. Low profile cars have a lower repair cost. They are also less likely to be stolen because they have less features. The low profile car that you buy should be in good condition. If the car is in bad condition, you will still be charged with high premium because it will need frequent repairs.
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Insurers will check your driving records before deciding to offer the insurance to you. If you are involved in DUI charges in the past, the insurer will be reluctant to approve the insurance deal. Even if the insurer approves the insurance deal, you will be charged with a higher premium. To avoid high premium, you must be careful in driving so that you won’t get involved in accident. People that are have never involved in a car accident will be eligible for a lesser insurance premium.
In addition, you may qualify for a Good Student Discount if you are a college or university graduate and you have at least B for all your subjects. When applying for a Good Student Discount, be sure to provide the transcript.
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