Insider Secrets to Help you Save on Car Insurance

Car insurance is something that we all must have, it's the law. It's very important to have the best coverage but as well the best prices and going for the minimal cost is not the best option and it's always better to have more coverage and paying a little more can go a long way.

How can you get the best rates when it comes to car insurance ?

So many methods are mentioned but some are not talked about as frequent. Most people listen to the insurance company advice, even when it doesn't benefit the insured, but rather the insurer. So be careful and do your home work on the issue.

Here are some insider tips to help you save on your car insurance

Your Credit Matters

It’s not a well-known fact, but your credit score affects what you pay for auto insurance. When you apply for an auto insurance policy, most insurance companies pull your credit history. Studies show that there is a link between credit scores and the likelihood that a person files a claim. Additionally, those with higher credit scores tend to make payments on time and stay with the same company for longer periods, which is in direct contrast to the patterns that people with lower credit scores display. One important thing to note is that insurance companies do not pull your credit, they simply use information from your existing credit report. So when you get an insurance quote, it does NOT put a blemish or a hit on your credit report as it is considered a soft hit. These types of hits have no negative impact since the insurance company is not looking to extend credit to you, they are just using the data.

Using information from your credit history, insurance companies calculate your insurance risk score, which affects the premium you pay. If you have had recent changes in credit rating or are waiting for some negative elements to be corrected on your credit report, you may be able to get lower auto insurance rates, but you have to wait until your credit rises.

Pay Now, Save Later

Paying your annual premium in full or through an electronic fund transfer (EFT) helps you save big money.

Many insurance companies offer a discount -- typically up to 10% -- if you pay your annual premium in full. If you do choose to make monthly payments, using EFT rather than paying with a credit card or check eliminates payment-processing fees, saving you around $8 per payment.

Bundling Value

If you already have, or plan on getting, homeowners insurance, use the same company to purchase your auto insurance.

Combining (or bundling) your policies with the same company often brings major savings, as most insurance companies offer discounts up to 25% when you purchase multiple policies. Many carriers now offer one policy for both your auto and home, saving you even more.

Save Your Claims

The quantity of claims, not the cost, greatly impacts your auto insurance premium. A claim of $1,500, $15,000 or $150,000 generates the same surcharge to your policy.

The higher your deductible, the lower your premium. Save your money and try not to file claims that are affordable out of pocket. Save your claims for the “big ones” that are truly necessary.
- See more at: http://www.miainc.com/blog/bid/312126/Five-Auto-Insurance-Insider-Secrets-To-Help-You-Save-Money#sthash.FR8XVH6c.dpuf

There are various way to save on your car insurance bills, the more research you do and the more you know will help you save thousands of dollars off car insurance, but you also get the great coverage to have you covered in case of a bad accident.

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12 Awesome tips to help you save on auto insurance - Video

These are Awesome tips that will help you save even more off your auto insurance policy.

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5 Great ways to save and great coverage on your car insurance

1. Good drivers get a special discount known as the good driver discount. If you have stayed claims-free for more than three years, you are entitled to this discount...

What if your insurer refuses to give you this discount?

Then tell them you will move over to another insurer. Any driver with a history as good as yours shouldn't have any problems getting much lower rates -- You are every insurer's dream.

The mere threat of leaving should make them shift grounds. But if they don't, look for another insurer.

2. Where you leave is also very important if you want to get more affordable rates. That's why insurers will always ask for your zip code.

Accidents are far more likely in densely populated cities than rural areas. The same also applies to things like break ins and vandalism.

Different areas in the same city also have different risk threats: Car theft rate (especially for your particular vehicle), crash rate and so on.

Therefore, check things like these if you are shopping for a new home

3. Go for the minimum bodily injury liability coverage stipulated by your state's law if you want to get very cheap auto insurance rates. However, in addition, get an umbrella policy.

An umbrella policy gives you far more liability coverage per dollar spent than even the most extensive liability coverage within an auto insurance policy. An example will buttress this point...

Let's assume that a man of about 35 years (who lives in New York City) wants to increase his policy's bodily injury liability coverage of $25,000/$50,000 to $100,000/$300,000...

He'll have to spend about $300 extra in premium.

But compare this to the fact that he could get a $1 million umbrella policy for just less than $300.

It even gets better...

If he chooses to raise the coverage amount of his umbrella policy to $2 million dollars, he'll only have to pay only $75 more.

That's $375 for $2 million worth of liability coverage!

See? That's superior coverage at a much cheaper rate -- That's the advantage in adding an umbrella policy instead.

But why should you care about bodily in an auto insurance policy?

People get hurt in accidents. And you will be responsible for the claims awarded if you are found to be at fault. Claims awarded could get into the million dollar range and above in certain cases

And did you know that lawyers can go after your assets if you don't have enough liability coverage to take care of claims awarded against you? This means you could easily lose your life savings and even your home if you don't have the right protection.

But that's NOT all about the benefits associated with an umbrella policy...

...You also get liability coverage that extends beyond automobile related liability claims. An umbrella policy extends to your home and much more

4. Belonging to certain professions attracts a discount. An engineer, for example, attracts much cheaper car insurance rates than an engineer. The reason for such discounts is that some professions have been proven to be better risks

Your agent is in a good position to tell you if your occupation is eligible for certain discounts. Nevertheless, the discount you'll be given varies from company to company

5. Maintaining more than one policy with the same carrier also attracts remarkable savings. All you must do to qualify for this is to purchase your auto insurance policy from the same insurance carrier who is underwriting, say, your home insurance.

However, take note of the following...

Because an insurance provider gave you cheap rates for one policy doesn't mean they will for another. Do some research with quotes sites and then discuss with your agent. Thereafter, you'll be sure as you make your choice because you'll then know which is more beneficial