Auto Insurance Rate — How To Get Cheaper
If you choose to pay your premiums monthly, you will attract higher rates. Notwithstanding the fact that this option is always more convenient, it is more expensive for some reasons..
There are transaction fees that are attached to processing a check. .While annual payment attracts a single check and therefore one transaction for a year, monthly payments attrract twelve. You'll then have to pay the total of 12 transaction fees..
Apart from this there are also administrative costs that are incurred due to the monthly payment option. A clear example of such is the expense associated with mailing payment notices..
These and more are then added to your premium thereby making it higher than if you paid annually.
The longer you stick with the same insurer the more you stand to gain for two reasons: The long term discount and accident forgiveness. Depending on the insurer, you'll be eligible for a discount of 5% once you've stayed with them for between three and five years.
The accident forgiveness discount means that your insurer will not raise your rates if you file just one claim. It makes sense for the insurer as it is cheaper to give discounts to existing policy holders than to acquire new ones. The longer you stay, the more you'll save.
Just bear in mind that some people will be better off if they switched to another insurer notwithstanding the many discounts given to long term policy holders.
If you want to keep your rates down, do NOT "pimp your ride." Doing such reduces your car's safety and, therefore, warrants higher rates as far as the insurer is concerned. So if you're really serious about keeping your rate down, leave your car the way it was manufactured.
Young drivers are statistically very bad risks. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.
So you'll do well to NOT place your teenage driver on your policy. It will drive it up by a huge margin. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.
If a teen is keen on driving then then should be made responsible for at least the cost of their auto insurance. Teens who pay for their own auto insurance are more willing to take steps to bring it down. This by extension means that such a teen driver will be more responsible behind wheels since they bear the full cost of their actions.
Add-ons like towing raise your premium without giving you as much value as using a towing service. Do you know that your credit card company might have already given you towing as an extra benefit?
Overall, you're better off using a third pary towing service than placing it on your auto insurance policy.
And...
You can reduce your auto insurance rates by obtaining and comparing quotes from at least five good quotes sites.
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