Cheap Insurance Tips
As a young driver looking to insure a car it is often the case that premiums will be relatively high. This is because younger drivers are more likely to be involved in an accident. However, there are things that you can do as a young driver to help yourself get the cheapest possible car insurance .
Cheap insurance? Auto insurance, life insurance, health insurance, liability insurance – whatever type of insurance you need, you can buy it for less. Try the following:
1. Raise you deductible. Why have a $100 deductible if a $1000 deductible wont break you? It may hurt to pay the first thousand someday, but what if meanwhile you saved several thousand? High deductibles mean lower rates. Of course, get quotes with various deductibles, to be sure youre saving enough for the higher risk.
2. Lower your coverage. Insurance agents secretly admit that people usually get sued according to policy limits. Youll be sued for more if your limit is a million than if its a hundred thousand. A judgment beyond the policy limits is a scary thought, but this can happen no matter what your limits are. If you dont have many assets or much money in the bank, consider lowering your coverage to save money. Get quotes first, of course, to see how much youll save.
3. Lower the insurance companys risk. Using seat belts, not smoking, and having alarm systems can mean cheap insurance. Ask your agent about any discounts that are available.
4. Use an independent agent. Why limit yourself to one insurance company? Independents can show you the cheapest policy regardless of which company its from. Just check a rating service to see if the issuing company is financially solid, especially when buying life insurance.
5. Drop your insurance. The insurance companies will hate me for this one, but consider eliminating some coverages. You need liability coverage on your car, but collision coverage on a $2000 car doesnt make sense. Invest the money elsewhere, and take the $2000 loss once or twice in your life, or maybe never.
6. Buy stocks instead of insurance. If you and your wife both have good incomes, it probably makes more sense to invest your money than to buy life insurance. If loved ones have enough income or assets, life insurance premiums are usually wasted money.
7. Get rebates. Some states that allows rebating. California law, for example, allows agents to rebate part of their commission to you. If you live in a non-rebating state, find a California company online!
8. Get the legal minimums. If you have no assets to protect, ask for state-mandated minimums on auto liability policies. Most companies give you their higher, more expensive company minimums if you dont push the point.
9. Review your policies. It is common for parents to still pay for health insurance coverage on adult children long after they are working and have their own coverage. See what other unnecessary coverages you may be paying for.
10. Get several quotes. For cheap insurance, compare quotes from several companies, and ask about different policy options. One more thing: take notes.
Make a choice on the cover you need as Third Party only, Third Party fire and theft and comprehensive cover are all priced differently. As a young driver, it could be worthwhile getting quotes for all.
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