Insurance-Pricing
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Tips to Save on Car Insurance

If you own a car, you need car insurance. Not only is it probably required by your state, but it can also save your finances if you are involved in an accident. Unfortunately, car insurance can be expensive and most people don't have the money to burn on extra coverage. If you know what car insurance companies look at when they determine coverage, though, you can save money on your insurance and get even better coverage.

Look at Discounts

There are more discounts out there than you might imagine. If you work for a major company, for example, you might get a break from a local insurance company. You can also get discounts for having good grades in college, joining certain honor organizations, or even being a veteran. Talk to your insurance agent to figure out if there are any discounts on which you are missing out.

Be a Safe Driver

One of the biggest factors in insurance rates is the safety of your driving. If you get in frequent accidents or you find yourself getting pulled over too often, your rates will go up. There are ways around this, of course- if you get a ticket, you might be able to reduce the points on your license by taking a safe driving class. Unfortunately, the only thing that can help you get rid of this factor completely is time. Most accidents fall off your record in a few years. If you can keep your record clean, you can save hundreds of dollars on premiums and deductibles.

Pay Attention to Coverage

Try not to get more coverage than you really need. If you drive an older car that isn't worth replacing, make sure to drop the extra coverage. If your car really isn't worth repairing, stick to your state's minimum insurance and make sure the bulk of what's insured covers harm to others. Try to make sure that your deductible is always lower than the cost of your car - if you can buy a new car for less than your insurance would cost you, it's time to look for a new plan.

Switch Cars

Different cars are insured at different rates. A great deal of statistical data has been collected by insurance agencies and they consider certain cars to be higher risk. The safer the potential vehicle, the less you are going to pay. Sports cars and exotic cars tend to carry the highest rates, as they are not only more accident prone but they are more expensive to repair. If you want to keep your rates low, try looking at a mid-range SUV or even a minivan.

Look at the Deductible

If you're not worried about paying for damage, increase your deductible. The higher the deductible, the less your premium will tend to be. This can come back and bite you if you do get in an accident, though.

Fix Your Credit

Your credit score can greatly impact your insurance premiums. The company wants to know they'll get paid every month, so they tend to try to get more up front from those with bad credit. If you want to get a better rate, start paying your bills on time, try to keep your credit card spending far below the limits, and establish a good payment history.

Keep Looking

Finally, you'll want to make sure to keep looking at coverage. Rates can vary between companies, so don't get complacent. Make sure you look at new companies every year - you can often get a great coverage discount for being a new customer.