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Beat Rising Auto Insurance Premiums

Beat rising auto insurance premiums and keep more of your hard earned money in your pocket. Drivers have had to deal with ever increasing costs through the years, a trend not expected to subside. Though at times average costs hold steady, historically premiums have climbed as medical expenses go up and the cost of auto repairs also rise. Facing all of this are drivers whose wages are not necessarily growing to meet these climbing financial obligations. But there are ways to counteract the average. Auto owners do not have to just sit back and let their premiums increase at every policy renewal, or suffer additional costs due to auto insurance claims subrogation. We have many different ways to work to try and save money on our policies. To beat the trend of rising premiums, take advantage of opportunities that are available to cut down on the rates you pay for coverage.

Increase Auto Insurance Deductibles

Car insurance deductibles are the portion set aside for policy holders to pay when a claim is made. A deductible equates to the level of self insurance a driver elects for that portion of a policy. If you have a $500 deductible on your comprehensive plan, it means you'll never file a claim for a very small property damage issue on your vehicle. This saves insurance companies from the cost of administering these small claims. So they can save in this way as well as saving on the deductible amount of larger claim payouts. Thus, electing a higher deductible saves insurance providers more than you might even realize. For this reason, an increase of $500 or more on your deductibles can result in much lower rates on comprehensive and collision insurance. The higher they go, the lower premiums will fall.

But policy holders have to balance out the urge to cut costs with the knowledge of the self insurance aspect of this choice. In other words, you need to understand as a driver and an auto owner that you are responsible for whatever number you choose for your deductible. After a major car accident, paying a large deductible can be particularly painful, especially if you owed money on the vehicle and the insurance payout did not completely cover what you owed. There's nothing worse than being without a car and having no money to put down on a new one. So drivers need to consider this balance between saving money on a mandatory car insurance policy and potentially paying out big chunks of cash on a claim.

Car Insurance Discounts

Increased deductibles effectively reduce premiums, but also cut back on coverage. Many drivers are uncomfortable with the prospect of resorting to this tactic in the name of monthly savings. There are other things we can do to try to save. A very common method that does not require sacrificing protection is seeking out discounts. There are many of these discounts available through insurers. Some are fairly standard across the industry while others vary from company to company. Completing a defensive driving class as a senior or maintaining good grades as a young student can save drivers money on their premiums.

Low mileage discounts can also apply for drivers who keep their travel under a certain annual threshold, usually in the neighborhood of 12,000 miles per year. Most often some sort of documentation is required, although this can vary among providers. There are multiple other sources of discount pricing on auto insurance policies. Some of them have to do with the attributes or performance of the driver while others are more tied with the vehicle being insured. Motorists should check into insurance prices as part of the shopping prices when they look around for a new car.

Another rebate opportunity that has gained more popularity among providers is one that is not all that well known to the general buying public. Early shopping discounts apply in some cases for auto owners who shop around for policies well before their renewal or expiration date. Insurers tend to look at these early shoppers as responsible consumers and not as drivers who are trying to get out of looming trouble with their current providers. Of course, it always needs to be emphasized that motorists should never cancel out on a policy if a replacement plan is not lined up to take its place without a gap in coverage.

Auto Insurance Comparison Shopping

It probably goes without saying that we should never think about driving without insurance protection, even if it is only temporary. Any lapse in coverage is dangerous and also can potentially cost us a lot of money on our next policy. Drivers who are smart consumers will start shopping around for coverage long before their current plan expires and look at different options to save money. Beat rising insurance premiums by being a smart shopper.

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