You'll attract lower rates if you opt to pay your premiums yearly and not monthly. True, paying monthly might be less stressful but it is also costly.
If you do transactions with banks you'll agree with me that each check you process is regarded as transaction which attracts charges. All through a year, your monthly checks would be processed differently because they are all different transactions. This means that you will pay transaction fees 12 times..
Apart from this there are also administrative costs that come with the monthly payment option. For example, it monetrily involed to send payment notices monthly.
These and more are then included in your rate thus making it more than if you paid every year.
Insurers give give customers who have remained loyal a long term discount and accident forgiveness. Depending on the insurer, you'll be eligible for a discount of 5% once you've stayed with them for between three and five years.
Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. These are all incentives for you to stay with them for as long as possible.
But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.
If you want to keep your rates down, do NOT "pimp your ride." If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more. Any changes to your vehicle takes your rates up.
Young drivers are statistically very bad risks. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. It will drive it up by a huge margin. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
It's a fair price for them to pay to enjoy the adult privilege of driving. Teens who pay for their own auto insurance are more willing to take steps to bring it down. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Your might be paying a lot more than you should because of some really unnecessary add-ons like towing. Have you checked to see if your credit card doesn't already offer this as added value?
Even if yours does NOT add this kind of service, a dedicated towing service from a third party will serve you better and save you more than adding towing to your auto insurance policy.
And...
You can get savings of hundreds of dollars on your auto insurance policy by obtaining insurance quotes from quote sites. The best method is to visit a minimum of five sites and ensuring that you give the same (correct) information about yourself.
I recommend that you use a minimum of five quotes sites since it will ensure you do not miss out better quotes not given by the other sites. This gives you a broader basis for doing more extensive comparisons thereby increasing your chances of getting more for less.
If you do transactions with banks you'll agree with me that each check you process is regarded as transaction which attracts charges. All through a year, your monthly checks would be processed differently because they are all different transactions. This means that you will pay transaction fees 12 times..
Apart from this there are also administrative costs that come with the monthly payment option. For example, it monetrily involed to send payment notices monthly.
These and more are then included in your rate thus making it more than if you paid every year.
Insurers give give customers who have remained loyal a long term discount and accident forgiveness. Depending on the insurer, you'll be eligible for a discount of 5% once you've stayed with them for between three and five years.
Furthermore, if a long term policy holder files just one claim, most insurers will NOT raise their rates thereafter. These are all incentives for you to stay with them for as long as possible.
But it will only be right for me to also point out that in spite of these incentives, you might actually gain more if you switch to another insurer.
If you want to keep your rates down, do NOT "pimp your ride." If you want to impress your friends with those extra special features like bigger types than the manufacturer's specification, then be prepared to pay a lot more. Any changes to your vehicle takes your rates up.
Young drivers are statistically very bad risks. More so, the younger an under-25 driver, the more they'd have to pay. That is why teenagers pay a lot more than 22-year olds.
This means that you'll help keep your rates down if you do NOT have a teen driver on your policy. It will drive it up by a huge margin. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
It's a fair price for them to pay to enjoy the adult privilege of driving. Teens who pay for their own auto insurance are more willing to take steps to bring it down. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Your might be paying a lot more than you should because of some really unnecessary add-ons like towing. Have you checked to see if your credit card doesn't already offer this as added value?
Even if yours does NOT add this kind of service, a dedicated towing service from a third party will serve you better and save you more than adding towing to your auto insurance policy.
And...
You can get savings of hundreds of dollars on your auto insurance policy by obtaining insurance quotes from quote sites. The best method is to visit a minimum of five sites and ensuring that you give the same (correct) information about yourself.
I recommend that you use a minimum of five quotes sites since it will ensure you do not miss out better quotes not given by the other sites. This gives you a broader basis for doing more extensive comparisons thereby increasing your chances of getting more for less.
About the Author:
Get more tips here: Safe Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba is an insurance expert.
