Follow These 10 Tips and Find the Best California Auto Insurance Rates
Do you know someone who is paying less for auto insurance than you are? Is there no obvious reason for the price disparity? Are you suspicious of how this person obtained his or her low rate?
The reality is probably simpler and a lot less sinister: the person knew the tricks for getting a lower auto insurance quote. But there’s no reason that this important knowledge should be kept secret. Here are ten “tricks of the trade” that could save you money on auto insurance.
1. Drive fewer miles. For many insurance companies, the threshold for lower premiums is 7,500 miles per year. If you currently drive 9,000 miles annually, carpooling or taking public transportation to work once a week could drop you below the 7,500 level. So make a pledge to do this, and your quotes will likely be lower.
2. Trade cars with your spouse. In the above example, if your spouse only drives 5,000 miles per year, swapping cars two or three times per week would allow both of you to drive fewer than 7,500 miles annually. Then you could benefit from lower rates on both vehicles.
3. Opt for a higher deductible. When you get a quote from an insurer, it is often computed on the assumption that you will pay a certain deductible in the event of a claim. But you can adjust that deductible upward if you like (say, from $250 to $500 or $1,000) and pay less in premium for your policy. Just be sure you fully consider that the higher deductible means that your out of pocket expense will be higher in the event of a covered loss.
4. Offer to pay up front. Almost every business likes to get money in its bank account sooner rather than later — and insurance companies are no different. If you are willing to pay for six months or a year’s worth of insurance in advance, you’ll likely get a lower quote than for a policy with monthly payments as you’ll avoid the typical installment fees that most carriers charge due to the additional paperwork and processing costs.
5. Bundle your policies. Consider your entire insurance coverage portfolio (homeowners, flood, earthquake, boat or RV, etc.). If you can purchase your auto insurance from a company you’re already doing business with, chances are good that the insurer may be able to offer you a price break in the form of a multi-policy discount.
6. Take an online drivers’ course. Insurance companies offer discounts of anywhere from 2% to 10% if you just complete a driver’s education course. Since these classes are widely available online, allocating four to eight hours (which can be spread over several days) for this type of instruction is definitely worth your time.
7. Invest in a security system. If your vehicle doesn’t already have an anti-theft system or vehicle theft locator device installed in it, consider having one put in. Auto insurance companies will give you a discount for vehicles with these types of systems.
8. Mention your vehicle’s safety features. When insurance companies assess your vehicle for its safety, they may not know about any additional safety features you may have opted for when buying it (like a reverse camera, anti-theft devices, or additional airbags). Pointing out these features may lower your auto insurance quote.
9. Study hard and excel in school. Full-time high school or college attendees are often eligible for good student discounts (usually an A or B average). So if you’re hitting the books, you’ll qualify for a cheaper insurance quote.
10. Ask about lower rates. It’s so simple, yet far too many people forget to do it. Simply asking how you can pay less for auto insurance may allow an insurer to find a discount or coverage arrangement that you hadn’t considered. After all, insurance companies want your business — and they’ll try to find ways to keep it.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverage’s in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.