Paying your premium annually will get you more affordable rates than choosing monthly payments. True, paying monthly might be convenient but it is also less affordable.

If you do transactions with banks you will agree with me that each check you process is regarded as deal which attracts a certain charge. Over the course of a year, your monthly checks would be processed differently since they are all separate transactions. you will then have to pay the total of twelve transaction charges..

Apart from this there are also administrative costs that come with the monthly payment option. A good example of such is the expense associated with sending out payment notices..

These costs plus a profit margin for this feature is included in your premium making it more than another of the same profile that pays annually every year.

Insurers give give customers who have remained loyal a 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.

Most insurers will also not raise the rates of a long standing policy holder if they make only 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.

However, what you may save by switching to another insurer might far outweigh all the incentives you’ll get depending on what your rates are and how much another insurer is ready to offer.

“Pimping your ride” does NOT help if you want lower rates. Doing such reduces your car’s safety and, therefore, warrants higher rates as far as the insurer is concerned.

It’s a known fact that young drivers attract high rates. More so, the younger an under-25 driver, the more they’d have to pay. That is why teenagers pay a lot more than 22-year olds.

So you’ll do well to NOT place your teenage driver on your policy. It will have an adverse effect on your rate. 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.

There are useful extras and there are those that do nothing but just inflate your rate. A good example of the later is adding a towing service to your policy. Have you checked to see if your credit card doesn’t already offer this as added value?

Overall, you’re better off using a third pary towing service than placing it on your auto insurance policy.

And…

You will save much money in auto insurance if you get and compare auto insurance quotes from quotes sites. You’ll make savings if you visit only one of such sites. But, you’ll get more by visiting at least five.

The simple reason for this is that you will receive many more auto insurance quotes from a wider range of insurers. This raises your chances of receiving better quotes.