Question

number of things affect the price we pay for auto insurance. Discuss some of the things you've done to reduce the cost of insurance.

Answer 1

Generally,many things affect the price we pay for an auto insuarance. But we have to try our best to reduce the cost of insurance for the things.

Mainly we can maintain a good driving record to cut down the cost of insurance.we have also many other ways to maintain the cost of auto insurance low such as:

1)ASK FOR HIGHER DEDUCTIBLES: Deductibles are also called as certain things you pay before the policy of insuarance pitch in. By this way we can lower our costs upto certain extent.For instance,if you increase your deductible from $300 to $700 helps us to reduce our cost by 20 to 35 percent.But here there is one aspect you have to keep in mind that before you select higher deductible ensure that you have enough money with you a side incase if you have a claim.

2)REDUCE COVERAGE ON OLD THINGS: Suppose if we consider our old car which is of worth less than 20 times the premium , then buying the coverage may not be the cost effective in that case.Banks cn tell you the actual price or value of any old things ,here in our example it is cars.you have to make a review at renewal time to ensure that needs of insuarance is not changed.

3)MAINTAIN A GOOD ACCLAIM RECORD: Organizing a good credit history can make down or cut your cost for insurance.Therefore to maintain a proper credit history,its better to pay your bills in time. And also you should maintain low credit balance with you by not obtaining more credit than required. Ensure your credit card must be free from any errors, thus maintain your records correct.

4)TAKE BENEFIT OF LESS RANGE DISCOUNTS: If we consider a car driver who drives hardly very less miles per year. For such a people many companies avails discounts separately when compared to other people.so,as you wont use the product most of times,its better to enroll under such type of less insurance packages to cut down the insurance costs.