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Saving Money on Auto Insurance: An Agent's Advice

Auto Insurance agents gain new customers daily from these scenarios:
-Someone buys that new car they have always wanted.
-A driver a significant rate increase on their auto insurance renewal.
-A driver had a "falling out" with with their current insurance agent or insurance company.
-A driver has received a cancellation notice from their current insurance company due to tickets, accidents and claims.

All of these prospective customers ask the question:

"How can I save money on my auto insurance?"

Auto Insurance agents have compiled this list of tips to save money on home insurance:

1. Shop Around. While this is time consuming, it's usually well worth the consumer's time to make some calls and inquiries. The public is usually not aware of individual insurance companies "growth strategy". Company A might be raising rates to lower exposure in a market, while Company "B" may be looking to grow in a certain market.

2. Give the agent full disclosure of your circumstances. If your driving record is bad, be prepared for the consequences, not much you can do at this point. The days of "hoping no one will find out" are over due to the electronic age. If you have youthful drivers (generally under 25 years old), be sure to disclose this too. Agents typically try to get you their best price from the start. It is better to get a true and accurate quote than a "suprise" premium when the policy is issued.

3. Ask the agent coverage questions. A good example of this is "What are the 'Limits of Liability' on this quote?" Be prepared for the agent to give you a minature education on auto insurance terms-this is helpful to you. If you are leasing your vehicle, you may be required to carry higher limits on your policy.

4. Compare similar coverages and policies when comparing rates. Don't fall into the trap of getting quoted state minimum liability limits one one quote and get higher liability limits quoted on another. The public often refers to this type of shopping as "comparing apples to apples". It's a good approach, most insurance shopper should use it.

5. Inquire about Multi-Policy Discounts. Most insurance companies are likely to give you a better rate if you bring your homeinsurance or life insurance business over to them. Compare the "Whole Package price" to see if moving all of your insurance to one carrier is financially justified.

6. Take a higher deductible. Sharing the burden of a potential claim is normally a great way to lower auto insurance costs. Considering a $500 deductible might make more fiscal sense than a $50 deductible. Make sure the deductible is something you can pay in the event of a claim since you will certainly need your car out of the repair shop as soon as possible. If you are a habitual claimaint, you may find yourself being "non-renewed" by your insurance company and in this event, it will be more expensive to acquire new auto insurance.

7. Ask about all available discounts. Get the rate you are entititled to. Many companies give discounts for Defensive Driving, Driver Training or "Good Student" discounts for younger drivers. Some companies even give extensive savings if the policy is paid for in a lump sum, rather than installments.

8. Keep your driving record clean! Slow down, practice courtesy on the roads. Many customers find themselves penalized for mulitple driving citations even if they don't have accidents. Most importantly, DON'T DRINK AND DRIVE, this will stay on your driving record for years, let alone the risk of life and property.

8. Keep your credit history clean. Many insurance companies are now using credit algorithms to determine the "likelihood and severity" of possible claim. While maintaining a good credit history is often times out of the driver's control (due to mitigating circumstances), know that credit reports and loss history are usually major factors in getting the best rate on auto insurance.



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