Five Ways To Decrease Your Auto Insurance
Back in the day when people could trust each other, contracts were concluded with a handshake. People did not concern themselves with insurance because they could rely on their neighbours to keep an eye on things and compensate them for any damages caused. Due to many factors caused by better technology, factors like an increase in the speed and cost of auto wrecks, auto insurance soon became a vital commodity. Soon, auto insurance became mandatory, at least minimally, in order to be able to get finance for the purchase of a car. This increased demand for auto insurance has caused an increased level of complexity in the contracts and a much wider variety of cover. As such, there is a need for more awareness of what you need in terms of auto insurance and what is superfluous. Being aware of the necessities implies being aware of the cost of auto insurance so that you are able to cater to your needs whilst staying within the boundaries of your budget.
You almost need to know as much about insurance when buying auto insurance as you do about cars when buying a car. If you do not know what factors insurance companies take into account when calculating your premiums, then you will be paying more than you should have to. Here are some things to take into consideration before applying for auto insurance
1. Aim for a low risk or “safe” profile: Insurance companies are interested in managing risk. If you can show yourself to be a careful driver, you are more likely to get a lower quote. This can be done by maintaining a clean driving record and having anti-theft devices like alarm systems and gear locks installed in your car. Attending driver training courses increases your ability to handle your car in an emergency, making you a better driver. Keeping you car in a secured area like a garage decreases the risk of theft and break-ins.
2. Have a clean credit record: As part of their risk management, auto insurance companies are concerned about getting paid on time. Keeping your record clean involves maintaining a good credit rating and keeping your debt to a minimum.
3. Choose and structure your policy wisely: The way in which you structure and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer. Annual policies tend to have lower and more consistent rates than six month contracts. Having the company set up a debit order on your account decreases the bank charges associated with payments. Try having all your insurance under the same company, this can get you a lower rate.
4. Do not over-insure: The more you insure, the more it will cost you. Stripping your policy down the bare necessities will save you money. For old cars or cars that are not used much, opt for minimum cover. After meeting the legal requirements for insurance when buying a car, adjust the insurance to meet your needs.
5. Other tips: There are a number of other tactics, some are reasonable and take very little effort, other tactics are not. Cars that are used for a single purpose can get lower rates. Professionals can get lower rates or better coverage if they go through certain companies. Certain occupations are considered lower risk than others.
In short, by taking certain steps to decrease your risk profile, it is possible to decrease your auto insurance rate by a substantial amount whilst still getting the coverage that you need.
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