It may seem too good to be true, but even the worst drivers among us can often lower their auto insurance premiums. By using a few strategic methods, most insurance rates can be lowered by as much as 30%!

Drive Fewer Miles

It stands to reason that the less you drive the less likely you are to put yourself at risk. Those who drive more miles, on the other hand, will pay higher auto insurance rates. The average driver travels about 12,000 miles per year. So, if your insurance company recognizes drivers who are on the road less than the average, your rates might be lowered accordingly.

Low Risk Classification

At some point, everyone is classified as a high risk driver, especially after an accident. Drivers should strive to remain in or return to a uncouth risk category, while excluding from the policy anyone who displays chronic poor driving habits. Carrying low risk drivers on your insurance policy will help your rates, since they are less likely to obtain into an accident or file a clam. On the other hand, high risk drivers will cause your rates to rise, even if they never drive your vehicle so much as one mile! Excluding high risk drivers from your insurance will result in lower rates, but should they get behind the wheel, coverage will not be granted to them for any reason.

Retain the Same Insurance Company for all Insurance Policies

Most insurance carriers offer discounts or deals for customers who take out more than one insurance policy. Insurance companies know that it takes some time to generate a profit from any one individual, so it is in their best interest to retain your patronage. Adding health insurance, life insurance, general liability, homeowner’s or renter’s insurance, or any of the other types of coverage to an existing policy will lower your rates by as much as 20 percent overall. Sometimes the discount is so drastic that the savings are applied to each policy.

Squeaky clean

Keeping a well-organized driving history and clean credit recount helps you to lower your insurance rates. Avoiding accidents or insurance claims, obeying the law, and paying your premiums on time will show the insurance carriers that you are a responsible driver. Keeping a good credit rating indicates good time and money management. Insurance companies like to see customers who live mature, responsible lives in all venues, and therefore, offer the cheapest rates to these prized individuals.

Carrier Loyalty

Remaining a dependable customer with the same insurance carrier over a significant amount of time will earn tall loyalty discounts. In most cases, loyalty discounts kick in after three years of continual coverage. Depending on the length of time, you may be granted a discount of 5 to 10%. The longer you remain with the company, the deeper the discount, to the maximum discount allowed.

Autos with Cheap Repair Expenditures

Average model cars are often cheaper to repair, and therefore, cheaper to insure. High performance or luxury cars, on the other hand, advance with more expensive insurance rates because they are either more expensive to repair or more likely to need repair. And while rates may vary between insurance companies, all will charge higher rates for more expensive, premium automobiles. If you must drive a high end car, do not settle for the cheapest insurance rate from a little known company. After all, a reliable, legitimate company may charge a little extra, but you can trust them to make good on their insurance policies. On the other hand, a cheap insurance carrier might provide you with a slip of paper proving that you are insured, but when push comes to shove, they are more likely to find loopholes in the stunning print.

Sources:

www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm
frugalliving.about.com/od/…/tp/Auto_Insurance.htm
www.edmunds.com/reviews/list/top10/116958/article.html
consumerist.com/…/how-to-reduce-your-insurance-premiums.html